How to Budget for Home Remodeling Projects
It can be difficult to stick to a budget, no matter what it’s for. There’s always the temptation to spend a little more when you’re on vacation, shopping, or pursuing a new project.
When it comes to undertaking home remodeling projects or making exterior home improvements, however, carefully planning and sticking to a budget is crucial. Otherwise, the scope of the renovation—and the price—can spiral upward before you know it.
Renovations on a Budget
According to HomeAdvisor, renovating a house costs about $10 to $60 per square foot on average, depending on which room you’re remodeling and what the project includes. Kitchens and bathrooms cost the most, while bedrooms, living rooms and basements fall on the lower end. For the average 2,500-square-foot house, a total renovation could cost anywhere from $15,000 to $200,000. That encompasses a wide range of possibilities, from simple projects that require inexpensive materials to high-end projects involving custom cabinetry and appliances.
Regardless of the scope and expense of your project, there are a few important steps to take as you develop your budget. Following these steps can help you set your priorities, establish a realistic spending limit, and stick to your budget.
Determine Your Goals
First, you must identify why you want to renovate a room or your home.
- Do you want to create more space or open the floor plan?
- Are you trying to increase the value of your home?
- Are you addressing disrepairs or the effects of long-term wear-and-tear?
One you figure out your goals, you can set a more suitable budget for accomplishing them. For example, if you’re trying to enhance the value of your home ahead of selling it, it wouldn’t make sense to undertake a $60,000 kitchen remodel for a home that’s valued at $200,000.
Once you know what you want to achieve, you can decide what specifically will get help you get there. The materials and finishes you choose will greatly influence the overall cost of your project. If you know exactly what you want, you can create a list to share with your contractor. If you’re unsure what various materials and finishes cost, you can get a more accurate estimate from your home renovation team. If you’re trying to save money, think about refurbishing and salvaging all the old items you can.
Evaluate Your Financing Options
The next step in planning your renovation budget is to figure out where the money for the project will come from. You may have cash on hand to cover part or all of your home renovation. Otherwise, you will need to get a loan. A few options for financing include obtaining a home-equity line of credit (HELOC), a home-equity loan, or a cash-out refinance. You can speak with your bank, a mortgage lender, or other financing agencies to find the best option.
Get a Quote
Most remodeling experts in Delaware will come out to your home for a complimentary consultation to better understand your renovation goals, but you likely will have to pay for a “hard” quote that includes a detailed outline of the project’s cost and a timeline. If you’re trying to stick to a specific budget, you should opt for a fixed-price contract, where you pay a lump sum upfront. If you have a little flexibility, you can sign a time-and-materials contract. Either way, be clear about your financial limitations and communicate them to your renovation team so you can be on the same page. During the contracting process, you will work with your remodeling team to create a detailed budget for your project as agreed upon. Any changes made to the scope of the project after its underway is costly to both parties.
Planning Your Home Renovation Budget
If you’re ready to start a home remodeling project, it’s time to grab your calculator, open a spreadsheet, and plan your budget.Start by researching the average costs for materials and finishes for your home renovation in Delaware. We have comprehensive information about the cost of
For project specific projections, however, you can contact our team and request an estimate, using our expertise and knowledge to help develop your budget.
“How to set your budget for a big home improvement project.” The Washington Post. Accessed online at https://www.washingtonpost.com/lifestyle/home/how-to-set-your-budget-for-a-big-home-improvement-project/2018/03/26/acf2b7cc-2c7f-11e8-b0b0-f706877db618_story.html
“What I wish I’d known when budgeting for a renovation.” Curbed blog post. Accessed online at https://www.curbed.com/2018/1/30/16950746/renovation-home-budget-tips
“How to Set a Home Renovation Budget.” Zillow Blog. Accessed online at https://www.zillow.com/blog/budget-for-home-renovations-177504/“How Much Does It Cost To Remodel Or Renovate A House?” HomeAdvisor. Accessed online at https://www.homeadvisor.com/cost/additions-and-remodels/remodel-multiple-rooms/