Home remodeling activity has started to rebound according to housing reports from the Joint Center for Housing Studies of Harvard University. Homeowners are spending more money on remodeling projects; and the Leading Indicator of Remodeling Activity report suggests home improvement spending should continue to rise through the fall of 2013.

In anticipation of selling their home, some homeowners are planning renovation projects to boost their home’s appeal to prospective buyers. While others have decided to update their home for added comfort and convenience since they plan to live in their homes for a long time. Regardless of your reason for remodeling, there are some things you should do before you start any renovation project.

1. Determine why you’re remodeling. Are you hoping to sell your home faster or for a higher sales price? Or, are you remodeling to make your home more functional or tranquil? The answer will help you figure how much money you should spend and the size of the remodeling project.
2. Decide what areas in your home you’ll change. Kitchens and bathrooms are popular choices and may provide your best return on investment. If you’re looking to sell your home, updated kitchens and bathrooms can often sell the home. But you shouldn’t over-improve your home. A good rule of thumb is to keep the costs of your renovations to no more than 25% of your home’s current value.
3. Define your goal for your renovation project. Do you want a larger kitchen so several people can cook at the same time? Do you want to open up your kitchen to the dining room for more entertaining options? Do you need a larger master bath? Do you want a more relaxing environment in your bathroom?
4. Gather ideas. Look through magazines and tear out pictures of colors, features, fixtures, appliances or entire rooms that appeal to you. Save these pictures in a binder to create a style book. These ideas will help you form a better idea of what you want. Plus, this style book will help your designer and/or contractor visualize your dream.
5. Create a budget. You’ll need to determine how much you can afford to spend on your renovations before you begin. The National Association of the Remodeling Industry has a worksheet that can help you figure out what this dollar amount should be. Then you need to decide how you’re going to pay for this project. Will you use your savings? Will you obtain a personal or home-equity loan? Will you borrow money from family members? Will you pay for it with credit cards?
6. Have realistic expectations. Deciding to overhaul your kitchen a month before a big party at your home is just asking for stress and disappointment. Supply shortages, weather delays and other glitches are inevitable with any remodeling job. Also, make sure everyone in your family understands exactly how the renovations are going to affect your daily lives. A kitchen remodel may mean: you’ll be eating out more; you’ll be using your microwave to prepare all of your meals during the renovations; or you’ll have to wash dishes in the bathtub. These changes can increase the amount of stress in your lives.

With the right planning upfront, your home remodeling project should go easier, with less added stress. So your renovations will fulfill your dreams instead of creating a nightmare.

If you’re planning to remodel your home and want to use a home-equity loan to finance your project, talk to one of the loan specialists at Grandview Lending. We can answer your questions and help you find the right loan to meet your plans.