Did you buy a new house that could use a few renovations but ended up paying more than you expected when the interest rates spiked? Or maybe you were hoping to buy a new house but decided to stay put and make your existing home more livable with a few tweaks.

Or perhaps you cant afford to make all the improvements on your wish list now that the economy is in a swirl. Its a common scenario these days with inflation and supply chain issues making it challenging for homeowners to give their home the upgrades it deserves.

That doesnt mean you have to scrap all your plans, though. Instead, simply break down whichrenovationsmake economic sense now and how you can pay for them.

Heres what you should know first

While theres no shortage of renovation ideas from inspirationalPinterest boards, there are material and labor deficits to contend with these days.

Shortages ofbuilding materials and applianceshave resulted in price inflation, making home renovations more expensive, saysHolden Lewis, home and mortgage expert atNerdWallet.

Even if you find windows, doors, cabinets, and appliances, you might not find the models or quality you prefer, he says. Plus, they might cost more than you want to pay.

But that doesnt mean you cant start planning now. So ask yourself these questions to discover which renovations make sense right now.

How do I deal with materials shortages?

Due to supply chain delays, some of the critical components of renovations are hard to come by. Slim pickings in lumber, drywall, steel, indoor and outdoor furniture, paint, appliances, and even joint compound might determine thetype of renovations you can do.

Still, you might be pleasantly surprised if youre patient and willing to go an alternative route to get the goods you need.

Creativity is key when sourcing the items you need, whether thats a new front door or updated house numbers, saysKim Bright, and agent withtheBright Bishop Groupat Compass in Jacksonville, FL. Our team loves to find hidden gems at local salvage yards.

Does the renovation have a good ROI?

Another thing to consider is whether the project yields a decentreturn on investment, or ROI. Essentially, an ROI breaks down how much money you can recoup when you sell your house.

So which projects generate a higher ROI? According to Remodeling Magazines2022 Cost vs. Value Report, exterior projects reign.

COVID-19 changed our relationships with our homes. As a result, homeowners are creating, expanding, or improving living spaces.

A newly installed garage door that costs around $4,000 tops the ROI list, recouping 93.3% of its initial investment. Other projects with higher ROIs includewindow replacement, entry door replacement,exterior siding, and decks.

Surprisingly, only one interior project landed in the upper ROI range. A minor kitchen remodel costing about $28,000 fetches a. 71.2% ROI. A bathroom and primary suite remodel rendered less than 60% ROI.

Do I want a more comfortable outdoor space?

Real estate agents agree any project that enhances outdoor living spaces pays off in mental health dividendsandROI.

People are making their own homes the place to becreating spaces they dont need an escape from, but a place they are escaping to, says Salter.

So anything you do toelevate outdoor livingis a winner. That might be improved landscaping, outdoor accent lighting, or fire pits.

Is my curb appeal dull?

Youve heard it before, but it bears repeating:Curb appeal improvementsgrab the attention of casual onlookers and homebuyers, which equals a higher ROI.

Pressure-washing and painting the facade, a newfront door, house numbers, mailbox, and landscaping garner good ROI.

Plus, most of the products you need for this improvement should be available at your local hardware store.

Does my kitchen need some love?

COVID-19 got so many more people into the kitchen as they spent more time at home, says McAuley. (Remember baking all that sourdough bread and the resurgence of family meals?)

So maybe its time you made your cooking space more flexible and user-friendly. For a significant change on a small budget, consider adding a larger island where the family can congregate.

Other wallet-friendly upgrades? If you have an open floor plan and need segmented spaces for work or study, install barn doors or pocket doors to create flex rooms.

Or resurface or paint dated cabinet fronts and attach new hardware instead of installing all-new budget-busting cabinets, suggests Salter.

How will I pay for renovations?

If youre planning a larger-scale renovation and have enough home equity, you canrefinance your hometo pay for renovations. Currently, that option is less appealing sincemortgage rateshave skyrocketed.

Another route to funding renovations is ahome equity line of credit, which is a second mortgage or lien on the home. You can borrow the money using the equity in your home as collateral and pay only interest on the funds you withdraw during renovations.

And while it might seem counterintuitive, you can use acredit cardto pay for pricey renovations. Just be sure to use a credit card with rewards pointsandpay off the monthly balance to avoid interest charges.

You can even use these renovation expenses to earn a sign-up bonus on a new card more quickly, since you typically need to reach a spending minimum like $3,000 in the first three months, saysSara Rathner, personal finance expert at NerdWallet.

When you are ready to buy or sell your next home, please call me, Marie McLaughlin 727-858-7569.

Source:https://www.realtor.com/advice/home-improvement/how-to-decide-what-to-renovate-during-inflation/