From 2017 to 2019, homeowners spent $522 billion on home improvement projects. This total included about 115 million individual projects. With recent world events, the spending on home improvement projects has only increased.
If you’re planning a DIY renovation project on your home, the first step is to determine your home renovation budget. This is crucial because you don’t want to throw yourself into debt just to update a small piece of it.
This guide will help you stick to your home renovation budget.
How to Budget Home Renovation
The first step is to accept that there’s no cheap home renovation. Invest in a project done well and done right the first time. Otherwise, you risk the project costing you more in the long run to make additional repairs.
Plan For the Unplanned
There will be surprises throughout the course of your renovation. To prevent yourself from going over budget, factor in ten to twenty percent of additional unknown costs into your budget. Then when these surprises arise, you have space in the budget for them.
Choose the Right Contractor
Request several quotes from reputable contractors who are qualified for the work you’re looking to have done. Do not blindly choose the lowest quote you receive. Unsavory contractors may bid low on the project just to secure the job.
Ask people around you what they have recently paid for similar work. Ask what the final project cost was. Find out if there were hidden or surprise costs that were discovered mid-project.
Mix Your Materials
Use a combination of expensive and lower-cost budget materials. Use budget materials in places that will have less of an impact. Then strategically invest in higher quality pieces that will make a big impact.
If you find that your dream project is outside of your budget, consider doing some of the work yourself. The easiest thing you can do is the prep work and demolition tasks. This will cut down on the contractor’s time and reduce your overall renovation cost.
Homeowners who are experienced and have the know-how may be able to do more of the work. You could have the contractor set up the electrical, plumbing, or gas lines. Then you can install the new light fixture, sink faucet, or stove.
Skip the Renovation
If you find that your home renovation aspirations far outpace your budget, then you should consider other options. One of which is to sell your current home and purchase a newer one.
You’ll see advertisements that claim, “we buy houses for cash fast,” but they do so much more than that. These cash buyers are investors who are more sophisticated than your average homebuyer.
They will purchase homes that are in need of repair and renovation. You are then free to find the updated home of your dreams.
Determine Your Renovation Budget
The best way to stay within your renovation budget is to set a realistic budget from the start. Working with a reputable contractor and obtaining accurate quotes ensures you start with a manageable budget. From there, you can manage your budget by choosing a range of materials or doing the work yourself.
Check out our other renovation articles for more tips and tricks to all of your home projects.