DIY Home Makeover

Determine your budget for the makeover and how you will finance it. For smaller projects like painting walls or installing new floors, you can pay with a credit card or draw from your savings, and if you do those projects yourself, you can save a lot of money on labor costs. For larger projects, such as doing a kitchen makeover or building an addition, you will most likely need a loan or a line of credit against your home equity.

Factor in how long you intend to live in your home. If you think you will be moving in a few years, make your remodel one that you will enjoy but will still appeal to prospective buyers. Choosing neutral colors for the walls might be a good idea. If you're trying to improve the value of your home in order to sell for a higher price, make improvements that will give you the highest return on your investment. But if you plan to be living in your home decades from now, do exactly what you want.

Gather ideas for the makeover. Magazines, television shows and the Web offer an abundance of ideas. Also take into account any incentives that can save you money, such as tax credits for using energy-efficient materials or designs.

Plan the makeover. You can sketch it out on paper, hire an architect or use Computer-Aided Design software. The larger the project, the better off you will be if you hire a professional to make the plans. If you're building an addition, your local zoning board will probably want to see plans completed by a professional. An architect's fee can account for 10 to 17 percent of a project's cost, but it may well be worth every penny.

Decide which parts of the project you will complete yourself, and which parts you will hire a contractor to complete. You can save on labor costs by doing part of the project yourself, but keep your own skill level in mind. Starting a project that you don't have the skills or knowledge to complete can lead to higher costs if you must hire a professional finish it.

Hire the contractor or contractors. If you're doing none of the work yourself, hire a general contractor, who will hire subcontractors to do specific parts of the makeover. If you plan to do some of the work yourself, hire contractors to do the parts that you won't be doing. For example, you don't need to hire a painter if you're going to paint, but if you don't know how to install carpet, you need to hire someone for that. To avoid getting burned, shop around for contractors, and make it clear that you're soliciting several bids. Research the contractors whom you're considering. Check with your Better Business Bureau for any complaints against them. Read customer reviews posted online. Ask your family, friends and co-workers for recommendations. A little research in the planning stages can go a long way in preventing problems down the road.

Acquire any needed permits from your local government. You can face severe fines for completing a major project without a permit, and in an extreme case you could even be forced to demolish your project. The permits you need vary by municipality, but generally they are required for projects like building an addition, paving part of your property and installing new siding.