How To Budget For Home Remodeling

Last Updated on November 3, 2021 by Kravelv

Have you ever done a home remodeling and gone way above your budget? If yes, you did not take the time to plan accordingly.

It helps to talk to remodeling contractors for expert advice and to guide you through the budgeting phase. Years of experience in the field will help them understand your needs and prioritize what you need to do.  

painting renovation

But, that’s not all, coming up with the right figure is a little bit more complicated. Some things will determine how much you spend on the renovation. These are the complexity of the task and the material. There is also the cost of hiring contractors that you can cut down with some DIYs.   

We will share with you how to go about the budgeting process.

1.  Start With A Plan and Checklist Of What You Want To Do

Draw up a plan and checklist of everything you want to do. Let’s say you need to remodel your bathroom. Are you just adding pieces or will you need to change the layout?

Are you expanding the size or just replacing some parts? What type of material do you want? Make the list as detailed as possible to cover every possible scenario. 

You can get some ballpark figures from the professionals. They will also be in a position to tell you what is possible, or not depending on their evaluation.  

2.  Determine How Much You Want To Spend

In an ideal situation, you would not have any budget limits. But, unless you have a money minting operation in your basement, this is rarely the case. So, determine how much you have and the amount you will put aside for the project.

Here is how to go about it. If you are paying out of pocket you know how much you have in savings. If financing is the option, start by checking how much the bank will give you. 

The best remodeling contractors can help you find financing options due to industry partnerships. They will also have a list of pre-vetted suppliers they can recommend. It could result in huge savings, thus keeping the remodeling budget under control.  

3.  Look at the Market Conditions

Expert remodeling contractors may tell you not to exceed more than 15% of the total value of the home.

You want to add value rather than drive up the cost. If not, when you decide to sell, your rates end up being higher than what the market has to offer.

Take the example of home renovations that drive up the cost of a $1 million home to $2 million. Yet, the location does not change, meaning the most you can expect is the initial value. How likely are you to see any return on investment?  

Use available resources to tell you how much to spend on the renovations. Painting interiors, will for instance cost about $2,000. Kitchen remodeling can go up to $35,000.

Installing a deck may range at about $3300. Of course, the figures are dependent on what you want to do.  

4.  See Where You Can Save Money

There are some things you can do to save some money. Taking on some of the tasks as DIYs can see you cross off some items from what you need to pay.

Painting, replacing cabinet handles, and putting in some fixtures are things you can do. Need some help? Simple, log into YouTube and watch the how-to tutorials.  

Choose materials that are not too expensive. Instead of granite for your countertops, how about using laminate? You want a copper bathtub, but the cost is outside of your budget. There is the option of fiberglass or ceramic which may fit within your budget better.

Yes, you want a stylish new faucet, but the old one works fine. How about leaving such as is, you can always change them later. 

And, go back to your checklist. Do you really need to do the remodeling at that scale? Are there some things you can cut back on to better utilize the money you have? 50% extra space in the kitchen would be great. But, 25% would work quite well too, if you just make a few adjustments. 

5.  Find The Right Remodeling Contractors And Collect Quotes

You have your checklist ready and know how much you want to spend. Now comes some leg work requiring time and patience. There are many contractors in the market. An internet search will yield tons of results.

One option is to get some names from the search results and do your due diligence. You can also get recommendations from family and friends. Take time to do some due diligence to understand who you will be working with.

How long have they been in business? Do they have a portfolio of work to show expertise? What do customers say about them?

Narrow down the list to the top two or three. Then, ask for a face-to-face meeting for a chance to get to know them better. It will also be an excellent time to get feedback on any other questions you may have.

See how you feel about the team, because perception matters. If you are not comfortable or feel they are not listening to you, move on.  

Collect quotes from the different contractors to see how much the project will cost. It is important to do price comparisons to avoid going for the most expensive option.

Expand your search to include suppliers as well. Buying supplies directly saves you from paying the markup put on items by contractors. It could save you a bit of money.   

Final Thoughts

Do not start any home remodeling project without drawing up a proper budget. Start with a checklist of everything you want to do. Next, allocate an amount that you will spend on the project.

See how much you can save with some of the tips we have shared. Do proper due diligence when looking for contractors. Also, collect multiple quotes for purposes of price comparisons.

Get help and advice from remodeling contractors. They are in the business and can help you avoid very many mistakes. You also benefit from their networks of suppliers and financiers.

Best of all, they take the stress out of the whole process for you. That is why it helps to find the right people to work with. Good luck with your home remodeling project.

Kravelv is a full time digital marketer and part time furniture and cabinet maker. During his free time he would like to create something out of recycled woods, this varies from toys, furnitures plant boxes etc. Follow him on Twitter | Pinterest | Facebook