7 Tips to Consider for Your Home Renovation Budget

By accessibleproperty

May 31, 2021

Planning your money for home renovation costs can be a headache. You need to weigh things out to determine what you really need versus what you want.

You have to know how much is your home renovation cost to ensure you make better spending decisions during the entire project. However, home renovations can still end up costing more than initial estimates.

Are you ready to get your home remodel started? Use these tips to save money without compromising quality as you create your home renovation budget.

1. Prioritize Projects That Earn Money

If a room in your house badly needs maintenance, of course, you have to budget for that project first. But if everything still works fine, you may want to consider starting with house renovations that can increase the value of your home.

If your main purpose is to increase home value, prioritize projects that earn more money, such as new roofing and wood flooring. However, if you care more about the results of your renovation project, you could focus more on a closet, kitchen, or any renovations that make you happy.

Cost vs. Value

When planning to sell your house in the future, keep the return on investment in mind when choosing home renovation projects. It's futile to spend over $50K in a kitchen if the house isn’t going to sell for more than what you paid.

Do your own research of the project’s cost vs. value, or better yet, ask your contractor. This gives you an idea of which projects are worth your money.

2. Gather Contractor Bids

Ask your neighbors, friends, or search online for legit contractors near your area. Request for project bids and timelines from each one and compare the pricing.

Keep in mind, don't go with the lowest bid, as you may end up paying for a shady business. After you went through your needs and wants, create a list of remodel goals and hand it over to your chosen contractors. This ensures that your cost estimate per square foot is as accurate as possible.

Also, make sure to include major structural and aesthetic changes to your house renovation list. Specifying your preferred brands can also help a contractor to give you a more accurate quote.

3. Break Down the Costs

Bring out the calculator and break down the cost to remodel per square foot, including labor and materials needed. Cost estimates will take some time to finish, so grab some coffee and brace yourself.

Remember, you still won't get an exact estimate until you talk with contractors. For now, dig around to get ballpark figures and be realistic about what you can afford with their budget. Once you get the idea of how much it cost to renovate your house, you can cut back costs in some areas so you can use your money on something better.

4. Find Materials and Sources for Remodeling

When you create your budget for home renovation, spend enough time researching your specific remodeling needs from the cost of living room appliances, countertops, bathroom vanities, and flooring.

Aside from researching costs online, spend time at your local home improvement and local warehouses where granite, marble, and other remodeling materials are sold.

5. Figure Out How To Finance the Project

Look at your current finances, can it cover the renovation? If so, you don't have to borrow money for the remodeling. If not, try using a home equity loan or home equity line of credit.

Some homeowners use credit cards to finance their renovation projects. This is a good idea, assuming you have a definite plan to pay these credit cards off.  For those with outstanding credit, it's easy to secure a loan through an online personal finance company.

6. Cut Costs as Much as You Can

It's never a bad idea to save where you can, especially if you're on a tight budget. If you're unwilling to compromise quality for your project, look into purchasing slightly used or refurbished items. Your contractor may have some ideas on how you can save on renovation costs, including purchasing materials where it's on sale.

7. Ask for Recommendations

Get advice on renovation projects from someone who experienced it. Besides getting first-hand knowledge and tips for completing a successful renovation, you also learn how to budget appropriately.

Someone who has done a kitchen renovation or improved their bathroom should be able to give you good tips on where to find deals on hardware and supplies. In addition, they can tell you what not to do to avoid wasting money.

Are you excited about your renovation project?

Renovating a home isn't easy, and you'll need the help of professional contractors to get things done smoothly. Make sure to set aside a money cushion in case of emergencies, especially if you plan to make structural changes, which often come with an unwelcome budget.