Before you renovate your home, consult with your Realtor. Or you may be spending too much. Recently, I met with clients who just finished a renovation on a 1970’s “investment” home. Once completed, they intended to sell. Makes sense right, “reap your rewards”, The issue: their renovation cost + purchase price exceeded the homes value for the current market, which means they have more money into the property then the home is worth in today’s market. To avoid this issue, meet with your Realtor before you meet with a contractor. Ask them to provide a CMA – Comparative Market Analysis of the home in its current condition and a CMA of neighboring homes that have been renovated. Ask your Realtor to provide a preliminary closing statement showcasing the “closing costs”. Then compare the two CMA’s to determine what your potential sales price will be, subtract what you paid for the home, subtract the closing costs and subtract the profit you’d like. The number you’re left with is your renovation budget.