How to Stick to Your Home Renovation BudgetOctober 30, 2023
Home renovations can be an exciting process. You get to dream of what your home will look like and see it come to life. However, the most stressful thing about home renovations is budgeting. How much does it cost to renovate? How do you know where to start? If you’re beginning to think of renovations, we’ll go over how you can set a home renovation budget and stick to it.
Determine Your Budget
The most important step is first to set your budget. Before looking for quotes and estimates, you need to know how much you have to spend. Whether you already have some money set aside or are just beginning to determine your budget, there are a couple of things to consider during this process.
Type of Home Renovation
Not all home improvement projects are the same. The cost to renovate will vary greatly depending on what part of your home you’re renovating and what you want done. For example, a kitchen renovation can range from $4,000–$60,000 while a bathroom renovation ranges from $2,500–$25,000. Where you fall on these ranges will be determined by whether you’re looking for minor renovations or want a complete remodel.
If you already have some money set aside for renovations, do some research and see what you can get with what you already have. If you’re just beginning the budgeting process, see how much you’ll need to save by searching averages. Keep in mind that these will be ballpark numbers, but it’s a great starting point for budgeting.
Consider Financing Before Starting
One option is using financing options such as loans and certain mortgages for home renovations. There are pros and cons to this method—on one hand, you won’t need to have cash upfront for the full cost, but on the other, you are taking on the risks that come with a loan. It is not a bad option to consider, but determine if this option is right for you and your financial situation while you’re still planning your budget.
Know Your Priorities
Knowing what you want to prioritize in your home improvement project will help save you both time and money. Some renovations are a must to keep your home’s structure and function sound—roof replacements, wall improvements, and new HVAC systems. These are a priority to keep your home comfortable and safe.
But if you have no need for new structural renovations, then it comes down to what matters most to you. Perhaps, your kitchen is a bigger issue to you than your bathroom. Or maybe the interior look of your home is more important to you than the exterior. You should prioritize these things first. You want to get the most out of your money, so starting with what matters most to you first will help you remain happy with your renovation throughout the process and any changes that occur.
Get Multiple Estimates
Before you settle on a renovation company, you’re going to want to get multiple cost estimates from multiple different contractors. While researching averages is a good starting point for planning your budget, getting exact estimates for what you want to get done will provide you with a much better idea of the costs. Multiple estimates will allow you to compare prices and “pick and choose” what looks best for you. Of course, the cheapest option may not be the best option, so you’ll want to identify a good contractor for you—both financially and quality-wise.
Set Aside Extra for the Unexpected
Even if you take every step right—you’ve saved accordingly, chosen a good contractor, and know your priorities—there’s still a chance the renovation will go over the estimate. This can happen for several reasons, but it usually is because something unexpected has occurred during the renovation process. This can push timelines and stretch budgets.
Our recommendation is to set aside about 20-30% extra over the estimated price to keep yourself within budget even if this occurs. If nothing unexpected happens, this money could also be used to add recommended upgrades to your renovation you may not have considered before. Either way, having a cushion to fall back on is essential during a home renovation project.
Save Where You Can
Some renovation projects require that you call in professionals to get it done. But there are some do-it-yourself solutions to saving money during renovations. Some tips to save money include:
- Decide what you can do yourself. For example, paint your own walls rather than having a contractor do so.
- Buy the materials and appliances you want yourself—your contractor may get these for you but add an extra cost for the time spent buying them.
- Find temporary lodging during renovations to help speed up the timeline.
- Reuse materials where possible.
- Refurnish flooring rather than replacing them.
Taking small, money-saving measures during a home improvement project can save you hundreds if not thousands of dollars throughout the process.
Trust Your Home Renovation Project and Budget to McFall Builders
With over 35 years of remodeling experience, we are the trusted renovation contractors in the Gainesville area. We know the importance of sticking to a budget, and we honor that to the best of our ability. Our licensed contractors will work with your vision and your budget to create your dream house. Whether you’re just looking for a single-room renovation or home additions, McFall Builders has got you covered.