Whether your budget is large or small, the cost of home renovation can quickly spiral out of control, especially in the first few months of renovation. Having a budget before setting up your renovation plan and finding a contractor will help you save money and stay on track. Once you have an idea for renovating your home, you can set your budget and stick to it.
While your taste may be moving towards the higher end of the market, sticking to the budget is no easy task, but the top tips below ensure you stay on track. Once you have completed your planning and made a few changes, you have a better chance of staying within your budget.
Free Worksheets & Templates
Simplify the budgeting process for your home renovation project with our collection of free worksheets and templates. Take advantage of these invaluable resources to accurately estimate costs, track expenses, and prioritize your spending. Whether you are planning a minor makeover or a major transformation, these ready-to-use tools will help you stay organized and make informed financial decisions.
4-Steps to Create a Home Renovation Budget
There are countless ways to give your home a facelift without breaking the bank. When you are considering starting a renovation of your home, it is vital to think about the workload and try to position your project for the right type of repair and maintenance. In the following sections, you will learn how to make your renovation more straightforward and more cost-effective without sacrificing the quality of the work.
Identify Your Goals
The most natural part is making sure you know why you are renovating. Do you want to remodel your kitchen, add office space, create more room for guests, or change the floor plan?
Take your time to find out the scope of the project and have a good idea of how long the process would take. Don’t forget how much work you need to do to make an informed decision when presented with options.
Narrow Down to Specifics
Decide what details you want before you start crunching the numbers. The most important consideration is to determine and choose materials and finishing before the job begins. That takes you to a reasonable budget. Would you like hardwood floors or carpets, for instance? Giving a contractor a list of precisely what you want will allow you to create an accurate budget.
Get “hard” Quotes From Multiple Contractors
While most home contractors will send you a free estimate for your repair, you typically have to pay for a ”strong” quote to provide a detailed summary of the cost of the project and the timeline for the work. The majority of contractors are too busy to quote for free.
The payment will depend on the time the contractors spent on the job and the materials used in the construction process. However, you are better off signing a fixed price agreement if you want to stick to your schedule, where you pay the contractor a fixed lump sum for the job.
Set Aside Money for Contingencies
While you do your best to create a budget for your home remodeling, there are some things you can’t plan. For this reason, we recommend taking your original budget and adding another 10-20% as a contingency. We assume that you will not be able to plan everything, but if you add the 20% contingency, you will be in a better position to solve all the problems that arise without blowing your budget out of the park.
Tips for Home Renovation
Determine the Scope of Work: Did you know that some construction projects are notorious for exceeding your renovation budget? Determine the scope of the work and do what you can to get a rough estimate from your subcontractor to solidify your budget. Use a home renovation budget planner and check them frequently to keep yourself accountable and up to date. You can save money by buying the materials and equipment yourself and not through a contractor.
Do Some of the Work Yourself: There’s nothing wrong with trying DIY renovations on a budget, but it can easily become an expensive endeavor if you’re not careful. Fortunately, if you are educated and planning something, it is possible to make your roadside motel look like the Palace of Versailles by converting it to your budget.
Select the Right Contractor: Do not just pick anyone to do the job. Ask neighbors and friends for suggestions if you intend to employ a contractor or developer. Don’t be scared to interview more than one person. Web pages like HomeAdvisor or Angie’s List help find the right person for the job. Therefore, examine what others have paid for similar work recently. You may not want to employ the least expensive developer.
Don’t Rush the Bids Process: According to HomeAdvisor, you will receive at least three offers for your project. Make sure the contractor is well organized and can demonstrate how well the plan and budget fit your needs. Also, pay attention to minor details like whether the developer is punctual when meeting you.