Home renovation projects are bank busters, but they are also necessary. It is a hefty process that seems to have no end, but the real struggle is planning the home remodeling.
It’s a piece of cake if you have limitless resources, but things get a bit complicated when you are on a tight budget. If this is your first renovation project, you must know that you can’t start without going in with a solid plan.
The plan will consist of everything from research to budgeting which you’ll need to do vigorously. There are so many things which can go wrong and various factors which should be taken into consideration. But don’t worry, we’re here to guide you through and through.
Before you go with the wrong contractor or break your bank, take a look at the following tips to come up with a budget-friendly home renovation plan
1. Develop a plan:
Before barging into the main event, you first need to do some planning. You must determine the extent of your home remodeling and pen down details of what exactly you would like to renovate. Are you making upgrades just for the sake of it or trying to increase the resale value?
Do you want to make long-term or short-term changes? Planning is a crucial stage of home renovation because whatever priorities you define will make a massive difference in the project’s success.
For instance, what are you going to do with the stuff that will pile up after decluttering? Will you keep your things in a self storage unit or hold a garage sale?
The best way to develop a plan and an estimated timeline are to walk through each space and write down everything from paint jobs to complete renovations and your desired timeline for each project.
2. Determine the cost of home renovation:
The cost of home remodeling depends mainly on the extent and the projects involved in the renovation. Even so, HomeAdvisor averages the cost of home renovation of 1,000 square feet to up to $19,000. The price can quickly climb to a whopping $87,500 for homes ranging between 3,000 and 4,0000 sq. ft.
However, it is best to calculate either through the full-cost method or the above square foot method. In the latter approach, you calculate the estimated cost of the selected materials against the renovated square feet.
The method has its limitations because it doesn’t allow you to consider unexpected events. On the other hand, the full-cost approach considers every expense from the material required to labor cost when calculating home renovation costs.
Determining the average price of individual projects makes it easy to come with a realistic budget.
3. Get quotes from contractors:
After getting a rough estimate of the renovation, allocate a percentage of that cost to various projects, then break down the price further. After putting your calculator to good use, now it’s time to decide whether you want to be your own contractor or contact professionals.
Sometimes, fitting yourself in the manager’s role when overseeing renovation projects is cheaper than hiring a general contractor. However, that entirely depends on the size of your home renovation. If you are going all in, then becoming your contractor may not be a wise choice.
You’ll need the expertise of a contractor to overlook operations, and we’d recommend getting one if it fits in your budget. But suppose your budget isn’t allowing you to squeeze in a full-time general contractor.
In that case, you do your research for subcontractors and overlook the operations if you are highly organized.
The types of contractors that you should search and take quotes from include plumber, cabinet company, drywall installation, tile installer, electrician, painter, and so on. It is best that you prepare a list of potential candidates and don’t forget to take reviews from other people.
Request as many quotes as possible to have no regrets that you could have gone for someone cheaper. You need to be objective in this regard because it is your house and money on the line.
4. Consider financing options and create a budget:
You have your estimates, the list of projects, and a potential list of contractors. Now it’s time to set a budget. You may find it tiring that every blog and expert recommends going by a budget, but there is a reason for that.
When you have thousands of dollars at stake, it’s best to know where that money will be going. Building a budget especially for home remodeling allows you to allocate funds effectively.
You’ll learn how much you can dispense for material or which contractor fits your budget. At the end of your budgeting, you’ll even know where you can cut costs.
Your budget should cover every cost, including temporary housing accommodations, storage rent, permit fees, labor costs, miscellaneous expenses, and so on. Alongside budgeting, you should also determine financing options for the renovation.
For instance, how will you pay for the entire project? Are you taking out a loan or paying in cash? Are you going for a home equity line of credit, or do you have a high-yield savings account? It is essential to shop around for financing options as you come up with a budget.
5. Saving renovation costs:
There is no harm in thinking about ways to reduce the renovation expenses. Once you have all the above steps sorted, you can put all your efforts into finding the best ways to cut costs. For instance, you can research shopping for low-cost sustainable materials.
You can purchase the material on your own and then hire the labor. As discussed before, you can avoid paying a hefty price for a general contractor who will ultimately outsource projects to other subcontractors.
You can find the contractors yourself within the budget and pen down areas which you can handle yourself. You can even go for DIY paint jobs, decluttering, and demolition, such as removing cabinetry or ripping out flooring yourself.
Conclusion:
Home renovation is a massive process that requires meticulous planning. Never think that you can take a “plan as we go” approach for something as tedious as home remodeling.
Try doing in-depth research for every aspect of the project, such as contractors, material, funds allocation, financing options, and more.
Going by a budget when remodeling your home is a lifesaver that can help you keep track of your funds and expenses. The key to a successful home renovation project is to remain organized, have a dedicated plan, and stick to a flexible schedule.
