Budgeting for a Renovation
Homeowners should start by writing down their renovation needs and priorities.
Home renovations are usually an exciting experience for most people. However, getting that new custom look on the house or parts of it can also prove costly. As such, homeowners should create an operating budget for renovations to ensure the project aligns with their financial means.
Here are tips to consider when making a renovation budget:
Map out the renovation goals
Homeowners should start by writing down their renovation needs and priorities. Whether needing more space, a different look, or upgraded features, noting it down avoids deviating from the main objective. It also gives a clear picture of the requirements for the said renovation.
Do thorough research
After identifying the focus of the renovation, what should follow is gathering information for the entire process, including estimated materials and labor costs, reliable contractors, and any permits needed. Such information helps assess the renovation price and compares it against the house’s value to avoid little to no returns on investment (ROI). Evaluating renovation costs against their ROI is especially vital in the case of commercial buildings.
Break down costs and make a budget
The cost ranges from the research should help property owners set a budget. To make a realistic budget, owners should determine their financial ability and acknowledge what they can afford and what is beyond them. The budget should include:
Living expenses while renovating
Estimated costs of all materials, including taxes and delivery or shipping fees
Labor costs
Permit fees
Disposing of demolition waste
Emergency fund
DIY projects can help minimize costs, but it should only be an option if the homeowner has the skills to match the project and the right tools.
Request quotes from contractors
Contractor bids or quotes give an overview of market prices. It also allows homeowners to negotiate better deals in line with their budget. When selecting a contractor, homeowners should:
Check for references.
Talk them through their renovation plan for better results.
Inform them of their planned schedule to avoid costly delays.
Engage them to plan for unforeseen issues.
Schedule the renovation
The success of the renovation is also dependent on the timeline. Season changes can cause delays and additional costs that exceed the budget. Many prefer summer and spring for outdoor renovations. However, the costs are higher since most people are active now. Autumn and winter seasons are better for indoor renovations, and most owners are also likely to save money during this time with low material costs.
Budgeting a new look
Renovating a home can take a toll on a person’s finances. However, homeowners can ensure the project flows smoothly without straining their pockets with proper planning and budgeting. They can also seek professional services to help with complex projects from start to finish.
Shewmake Home Solutions, LLC is a residential kitchen and bathroom remodeling expert in the Camino, CA, area, offering renovation and complete remodels.
