In my last two postings, we talked about the architect and the builder and how important it is to get that combination right when starting your remodel. But I suppose the biggest issue is, how are you going to pay for it?

Creating a budget and planning for contingencies is part of any business proposition, and remember: This is business at this point. Now, if you are flush with cash, then return to other parts of the Marvin site to see all they have to offer. But for most of us, planning the funding part of the project is critical.

Even once you have a final price from your builder or contractor, there will be surprises. There will be opportunities to go a little further to do it right, and that costs money. Make sure any changes are spelled out and the cost increases are agreed to in advance.

Interestingly enough, during these economic times, you are going to get a pretty good deal no matter what you are planning to remodel or build. Lumber prices are down, manufacturers and sharpening their pencils, and contractors are willing to work on thinner margins. If your credit is good, there is truly an abundance of money available at low rates. But don’t feel like you have to do it all in one shot. If you want to improve your home you may want to do it in phases.

Let’s take windows for instance. The average home has between 20-25 windows. If you were going to replace those in their entirety, you could spend between $17,000-$30,000, depending on the windows that you chose. To hold onto more of your cash, consider only doing half of the project this year and then the other half a year or two down the road. The fact is, in five years you will have a home that has all new windows, and the ones you put in first are worth no less.

The same is true about bathrooms, kitchens or a room addition. While there is a lot of fun in gutting and remodeling an entire home, the fact is the cost can be high. Now, there is an emotional side to phasing the work. If the thought of putting up with a mess for the next five years sounds unbearable then go big or go home. It’s really up to you.

Photo courtesy of Tall Chris on Flickr