Preparing a home remodeling budget isn’t easy, especially for first-time owners. You must do plenty of research and consider many factors regardless of what you’re planning to do.
Thankfully, planning a budget can help you avoid unexpected expenses later and make the most out of what you currently have.
If you don’t know where to start with your remodeling budget, we’re here to help. Here’s everything you should know before starting your next full house renovation.
Why Making a Budget for Your Home Renovation Is Important
It doesn’t matter if you’re planning a small kitchen renovation, a bathroom renovation, or any other project. Creating a budget ensures you prepare for any potential expenses you might have to make down the road.
Most renovations (especially the big ones) will require many upgrades. Some of these upgrade opportunities will appear while you’re doing the renovation you initially planned, which can cause a lot of problems for your wallet.
If you’re preparing room additions, for example, you must prepare a remodeling budget that includes any potential upgrades you may want to do. In this scenario, you must ask yourself as many questions as possible:
- What costs should you include in the budget?
- Do you need any permits for the project?
- How much do you have to pay for labor?
- What’s the project timeline?
Don’t worry if you struggle to answer some of these questions at first. You must take your time to find the right answer to everything. However, if you’re having any issues during this process, you can contact a home remodeling professional.
At Paragon Builders, we have a team committed to efficient communication and proper planning. We can ensure you prepare the perfect home remodeling budget that accounts for any possible scenario.
What Should You Consider for Your Remodeling Budget?
Let’s go over each step you should take to prepare your remodeling budget. Keep in mind that they apply to any project, so whether you’re planning to make garage conversions or install accessories housing units, make sure to take your time with every detail.
Pick Your Projects Wisely
In most cases, you won’t be able to renovate your entire home in one go, so you must pick what you want to do in order of importance.
You should always prioritize the spaces that need an upgrade to work more efficiently. On the other hand, if you already have the perfect design to renovate a specific room, you can start there too.
A great tip we can give you is to consider the projects that will add more value to your home first. Many renovations are also investments that could help you in the future.
When preparing your budget, you may be tempted to add more upgrades, but make sure you stick to your initial plan and work your way through. Eventually, you’ll be able to deal with everything you want without risking your hard-earned money.
Research All the Associated Costs with Your Project
Here’s the most “overwhelming” part of the process. You must take out a calculator, go on your computer, and start researching everything that goes into your project.
It’s possible that you’ll take some time to get this part done, so don’t rush it. The more specific the remodeling budget is, the better.
You may not get a precise cost for your budget until you talk to a contractor. However, doing research beforehand can help you find an “average estimate” that you can prepare for while you look for more accurate quotes.
Get Multiple Estimates
Getting estimates from different contractors is a great way to ensure you’re getting the best deal for your project.
Not all contractors charge the same for their services, and the chances are that you won’t find the perfect company on your first go. If you want to play it safe, consider talking to multiple contractors to get a more accurate estimate.
Include a “Budget Contingency”
You should never start a project without a budget contingency. This “contingency” will protect you if anything unexpected happens during the project.
Some people, for example, decide to change one of the materials for their home renovation halfway through the project, so they have to get some extra money to cover that.
Thankfully, if you include an extra 5%-10% of your overall budget into your plan, you’ll be able to cover most issues without a problem.
Consider ROI
As mentioned previously, some home renovation projects are investments for the owner. They could provide more value to the property in the future, which is beneficial if they ever plan on selling or renting.
If your project offers a potentially high Return on Investment (ROI), you could spend a little more to make the renovation even better.
Consider Dealing with Smaller Details Yourself
Not all renovation projects require messy work. In most cases, you’ll have to pay a lot in labor costs, although you could get them down if you deal with some part of the job.
If you’re doing a kitchen renovation, for example, you could prepare the site and remove the cabinets yourself. By taking care of everything that doesn’t require expertise, you won’t have to pay someone else to do it.
Keep in mind that this won’t always work. If the renovation is too dangerous to do on your own, you must factor the full labor cost into your budget.
Look into Financing Options
Most home renovations come with high prices. It can be discouraging to notice that you can’t do even the smaller things because of lack of money.
Thankfully, many companies offer financing options that give you more flexibility on your remodeling budget. Some of these options include home equity loans, personal loans, and even cash-out refinancing.
Bottom Line
A great budget is the key to achieving amazing renovation results, so don’t start your project without preparing accordingly.
If you’re looking for the ultimate solution for custom homes, reach out to our team. At Paragon Builders, we use the latest technology to ensure your renovation’s design and drawing plans meet all your needs, regardless of your budget!
