According to CNN Money, Indianapolis was recently named the most affordable city in the U.S. to buy a home. Current home prices, median income, and mortgage rate make this hot spot one of the best places to buy, build, sell, or tackle that home remodeling project you’ve been thinking about.
As the city grows, Indianapolis is seeing an increase in residents who are bringing up the median income, all while housing prices stay low.
According to Zillow, the average value of a home in Indianapolis is $137,300, a 9.4% increase in the past year. Although the housing market is increasing steadily, it is still a record low when compared to the rest of the country, making this city a perfect fit for both buying and selling a home. Small home remodeling projects, or even a complete renovation, can add tremendous value to a home in this growing market.
How to Plan and Budget for a Home Renovation
When considering a renovation project, the goal is to get a return on your investment. Sure, you want to enjoy your new flooring or upgraded appliances, but the real goal is to get more money from your house when it’s time to sell.
- Start by making a “wish list” of home remodeling ideas, and then narrow down the list based on what other buyers may be interested in. A hot tub in the backyard might be nice, but upgraded bathroom fixtures or a kitchen backsplash might attract more buyers. This can also help you begin to figure out how much you’re willing to spend on specific parts of your home remodel project.
- Next, do your research. Talk with contractors in your area to get an idea of the renovation costs. You can do some of the work yourself, but getting a professional estimate first is always recommended. Work completed by a professional will often reap a higher return on investment (ROI) than DIY projects unless you have the industry expertise. A contractor can also help you plan ahead by pointing out other areas of improvement, pitfalls, or code regulations to be aware of. Talk to at least three contractors and compare and contrast your findings before making a final decision.
- Once you have your project and your estimated budget, set aside an additional 20-25% of your overall projected budget strictly for emergency and unexpected expenses. You don’t want to be surprised by a last-minute plumbing issue, insulation problem, or an electrical emergency. Even if you don’t end up using this set-aside stash of money, you can use it as a buffer once your project is in its final stages. Once you are 100% sure you won’t need to use this money for its intended purpose, you can reevaluate and splurge on finishing touches, or you can always save it.
According to the Indy Star, because the housing market is growing so quickly, sellers are receiving over 95% of their asking price. This is virtually unheard of in the real estate market. Because the market is in the seller’s favor, it’s a great time to invest in a home remodel, sell at a higher cost, and receive a larger return on investment.
Kitchen Remodel Value Trends for Your Indianapolis Home
The kitchen is the Grand Central Station of any home. It gets a lot of food traffic and holds a lot of responsibility. According to HomeAdvisor, the rule of thumb is that you should spend between 5-15% of your home’s total value on your kitchen remodel project. Spend too little and it won’t make a difference, spend too much and you’ll have a harder time recouping the costs.
When considering a remodel in the kitchen, look at your estimated budget, longevity, and current market trends in your area.
- Budget: You can use savings, personal loans, or a home equity loan to pay for home renovations, but you don’t want to get ahead of yourself. Budget carefully and plan for the areas that will make the biggest impact while using the budget you have available to you.
- Longevity: What will make a difference in the long run, and what will last for decades? Things like hardwood flooring and granite countertops have the benefit of longevity, giving future buyers years of reliability.
- Market Trends: What do people in your area love? Is shiplap taking over? Or are concrete countertops the latest craze? Don’t go too trendy, but finding a way to appeal to market buyers in conjunction with your personal preference is key.
According to Manta, the average cost for a kitchen remodel in Indianapolis, Indiana is a little over $20,000. The low end of this spectrum sits close to $8,000. This would pay for smaller home remodeling projects like a nice tile backsplash, a few upgraded appliances, or a new paint job. While the high-end projects of a complete kitchen renovation sit close to almost $40,000.
Cost vs Value of Bathroom Renovations in Indianapolis, IN
Across all real estate markets from coast to coast, the kitchen and bathroom are huge selling points. If your bathrooms are a little scarier than spa-like, a little home remodel can be a great investment.
Will this be a major or minor renovation? Are you installing new fixtures, like sinks and showers? Or are you making simple fixes, like painting the walls and replacing the doorknob?
Although bathrooms are a relatively small space in your home, they make a big impact on buyers. A bathroom that is dated, dingy, and dark can drive buyers away immediately. On the other hand, a bathroom that is fresh, functional, and beautiful creates a comfortable setting for future homeowners.
According to Manta, the average cost for a bathroom remodel in your Indianapolis home is a little over $10,000. The low end of this hovers close to $3,500, which would be a simple remodel of a fresh paint job and a few new fixtures. The high end of a complete bathroom renovation sits near $17,000.
Are You Prepared? A Checklist for the Beginning Stages of Home Renovation
Making changes to any room in your home is always an exciting time. However, there is still a lot to consider, plan, and prepare when it comes to home remodeling projects. No one wants to end up doing dishes in the bathtub or watching TV while sitting on buckets for months. To ensure your project goes smoothly from demolition to completion, we’ve compiled a list of tips to consider before getting started:
Do Your Research
The research phase is one of the longest parts of any renovation, but that’s because it is also the most important. This helps you understand the scope of your project and manage your expectations. During this phase, answer questions like:
- What area are you trying to remodel?
- What contractors in your area are responsible and reliable?
- Are there aspects of your project that you can do DIY style?
- How much is all of this going to cost me?
These are all things you need to establish before any work actually begins. Doing your research means knowing what you want, who to work with, how much you will spend, and when/where to gather your materials.
Set a Budget
Whether money is no object or you’re on a tight budget, it’s important to know how much you’re going to spend and where the money is allocated. Consider your home’s current value and what you expect to see as a return on investment as you make your budget.
Keep your budget in mind every step of the way. As you purchase materials, hire labor, or invest in equipment, always double check the budget to be sure you’re on track. Remember to plan ahead for unexpected mishaps, discoveries, and emergencies that may occur when your project begins to unfold. It’s always better to be safe rather than sorry.
If need be, you can break down your project in segments, and do certain things in phases, in order to avoid spending so much money all at once.
Interview and Review Contractors
It doesn’t matter if you only need a contractor for one small segment of your remodel or you’re letting the professionals handle it all, you still need professional advice before you get started. This is an important step because it can give you insight into what the project actually entails, including a realistic timeline and budget consideration. No YouTube video, neighborly advice, or step-by-step tutorial can substitute for solid, professional advice from an industry expert.
When calling to compare contractors in the Indianapolis, Indiana area, make sure to call well in advance to get a timeline, description of the work required for your project, and an estimate for total cost. Talk to at least three contractors, and ask each for customer references before deciding.
If one quotes a price that’s extremely low, it’s likely too good to be true. The best bet is to choose a contractor that is right in the middle, not the highest bid but also not the lowest. Choose the contractor you are comfortable communicating with and one you have confidence in. You have to make sure you find the perfect fit for you, your family, and your property.
Protect Your Family
Your home and family dynamics should be considered when planning for any remodel. Perhaps you’d like to plan for the work to be done during the winter months while the kids are in school rather than during the summer when they’re home almost every day. Do you have holidays, birthdays, or major family events coming up? Do you have pets? How will they be cared for and protected during the process? Open doors, power tools, and chemicals all pose health hazards to pets and families. Talk with your family and with your contractor to consider these options before beginning work. Most pros are willing to develop a schedule that works with you and your family.
Permits Needed for Your Remodeling Project in Indianapolis, Indiana
Do you need a permit that grants you permission to make major changes to your home? Yes, no, maybe? Don’t worry, we’ve got you covered.
Although it typically varies from project to project, it is never a bad idea to make sure you look into what type of permit, if any, is needed to make sure your home remodeling process runs as smooth as possible. Following the rules and regulations set forth by your city is the easiest way to plan your remodel project.
Every home renovation project is different and no two situations are ever the same. To determine if you need a permit for your project, or for more information on residential development in the city of Indianapolis, Indiana, visit here: http://www.indy.gov/eGov/City/DCE/Permits/Improvement_Location/Pages/residential.aspx
Why Economy Dumpster?
You may be surprised how much mess a renovation creates. It’s definitely more than a simple trash bin can handle. Even if you have a pick-up truck and feel like you can take multiple loads to your local landfill, who wants to do that while you can enjoy time in your newly remodeled space instead?
Whether you’re planning a small renovation or a major remodel, Economy Dumpster in Indianapolis, Indiana can clean up any size mess, every time.
Renting dumpsters for home remodeling is easy. Or at least it can be. Simply select 10, 15, 20, 30, and 40-yard dumpsters based on the size of your project and let us take care of the rest. We take care of drop off and pick up so there’s no hassle for you. Contact us today to get started!