10 Essential Home Renovation Budget Tips

Having a renovation project can add value to your home. Although, it can also quickly spiral out-of-control if you’re not mindful enough and consistent with your target budget. Here are 10 things to remember when determining your home renovation budget.

Always have a Plan

Before anything else, always have a plan, and sticking to it as much as possible. This is one of the essential things you’ll need to do to keep your costs down when you want to have a  home renovation. Create a feasible budget. Build a plan that is detailed enough and includes your choice of finishes and fixtures, So your contractors can focus purely on labor costs and time estimates. It’s also important to have a realistic estimate of how much you can afford for the stage of the renovation.

Set a Budget Limit

The easiest way to stay on budget during a renovation is to know exactly what you want. Create a list of everything you would like the project to include and then separate items into wants and needs. Keep in mind that you should spend no more on each room than the value of that room as a percentage of your overall house value.

Figure Out How Much You Have to Spend

When deciding on your home renovation budget, it can be easier, and more affordable, to prioritize projects by room and build a budget around the cost of each individual project. Have a spreadsheet that includes each portion of the project and the estimated cost for labor and materials will allow you to see the value of your home as a whole.

Pick the Right People

Don’t just choose anyone to do the job. Ask your neighbors and friends for recommendations. If you’re planning on hiring a contractor or designer, Don’t be afraid to do interviews and talk to more than one. Also, do your research on what others have recently paid for similar work. Cheap labor sounds appealing but it can also lead a way for making errors which can cost you more money later on.

Don’t Rush the Bidding Process

You should get at least three bids for your project and pay attention to the small details. Take note of whether or not the contractor is on time to meet with you because punctuality indicates whether a person is well-organized and that can show how well they stick to the schedule and budget. Before seeking bids, determine exactly what you want, right down to the kitchen counter top material and the type of faucet. By specifying these details up front, you ensure that prospective contractors are all pricing the same items. 

Mix and Match Materials

Try mixing materials to save money.  Put hardwood floors in the living room and kitchen, but then use less-expensive flooring options in other areas such as the entryway, bathroom or mudroom. Tile and vinyl are less expensive than hardwood and can help keep your budget in check when used in some areas. 

Do Some Work Yourself

Help them if you can. Offer to paint to cut down on costs. Tile the new kitchen backsplash, if you have the know-how. By removing and discarding your old carpeting yourself, you can cut labor costs on the installer’s bill, and every little bit of savings can help.

Consider Reclaimed Materials

Use reclaimed materials to save you some money on a home renovation. Even if you use a contractor, you can save money on surcharges and fees by buying most of the materials yourself. You can also refurbish older items instead of replacing high-cost items, such as home appliances. This way you can curb expenses by salvaging what you have.

Combine Projects

If you’re going to do the same flooring in several rooms of the home, consider doing it 2 projects at once if possible. By combining projects, you can save money since it’s easier for laborers to do everything at once, instead of treating each room as its own project.

Sell What You’re Not Using

For instance, you are doing a kitchen remodel in which you plan to replace all of your appliances, consider selling items if they are in good condition. You can sell old kitchen cabinets, doors, and hardware. Create a  list of these items on websites such as craigslist and Facebook Marketplace. Take whatever you make on those items and use it to help pay for the renovations.