Budgeting for Home Renovations

With all the makeover concepts you can find surfing the internet, one can quickly drift away from their supposed ideas and budget. From unexpected problems to changes in your wants and needs, making sure that you stay on budget while completing everything in time is what you should aim for.

If you’re also a self-proclaimed home builder and designer, you will probably be thrilled to learn that I’ve found a solution for dealing with home renovations budgeting – and I’m here to share it with you and help you realize your goals!

It’s time to don our builder’s helmets and get ready for work. Here are the top tricks & tips that have helped me and my son get through our home renovation process!

Where Do I Start?

Since our finances and wishes don’t always go hand in hand, I found that beginning the journey with a clear, transparent outlook is crucial to the success of the project.

In this stage, it is your responsibility to come up with a thorough wish list of adjustments and finishes that you require. Nevertheless, stay realistic.

Budget: Worst Enemy or Sincerest Ally?

The next item on your to-do-list should be figuring out how much money you are willing to / you can spend on the renovation. Break the total calculation down into smaller fragments and determine how much each milestone will cost you.

Tip: Experts suggest that you should factor in 10 – 20 percent of your supposed budget for unexpected, hidden costs. Based on my experiences, aim for securing reserves amounting to around 20% of the initial budget. No matter how well-prepared you are, unforeseen events are bound to happen during your renovation – be ready for them!

How Much Should I Spend?

First, you will need to have your home evaluated and find out how much it’s worth and how much each room brings to the total value. In general, you shouldn’t spend more on renovating the room than its contribution to the total value of the home is.

The kitchen, for example, normally accounts for 10 – 15 percent of the value of one’s property. That means that if your house is worth $200,000, you should aim to spend no more than $30,000 on the kitchen renovation.

Bathroom & Kitchen

The bathroom and kitchen are the main comfort providers in your home that also instantly catch the eyes of potential buyers. Whether you want to maximize your coziness or increase the value of your property, I would suggest you start your home renovation in a bathroom or a kitchen.

While the ROI (return on investment) of kitchen and bathroom renovations can reach 80 – 100%, don’t forget to focus on the essentials as well. Roof and window replacement always pays off in terms of comfort, energy-efficiency, and the value of your home.

Furthermore, you should be very careful with budgeting bathroom or kitchen renovations. From countertops to cabinets to labor and fine details, there are many factors to consider in your financial plan.

Plan Your Renovation Wisely – Opt for Eco-Friendly Solutions

The good thing about being eco-friendly is that it comes with a high ROI and drastically raises the value of your property. Whether you’re after reducing your living expenses or selling your home for more, eco-friendly solutions can ease your mind.

Besides investing in solar panels and renewable energy heating system, covering your exterior walls with timber is another excellent idea to add to your plan.

Timber cladding is a process in which the walls are cladded with timber, which gives the property a whole new look. It also comes with other benefits such as the increased sound- and heat-insulation of the home. I would definitely suggest this technique to anyone who is running on a small budget and looking to maximize the results of the effort invested.

Get Renovation Quotes from Contractors

This step is vital to ensure that your dreams can indeed become a reality. Without proper quotes, you can only guess how much something will cost you. Make sure to collect quotes from several professionals for each part of the renovation.

I suggest you always compare the quality they offer with the estimated costs. Luckily, the internet can also help you with that. Check out the companies you’re getting quotes from and make sure they have positive reviews and a history of satisfied clients.

Tip: Be VERY specific when it comes to the details of the contract. All your wishes need to be transparent and on paper – from materials used to exact working processes – to avoid misunderstandings.

Staying on Budget

Stick to the original plan as much as possible, as even the smallest changes may turn out to be costly.

On the other hand, if you find yourself crossing the boundaries of your budget, trim down your dreams to the point where you’ll still be satisfied with the outcome.

From cost-friendly alternative materials to reusing old stuff to ‘doing it yourself,’ many things can help you scale down your expenses. Fortunately, contractors can help you with deciding, so make sure to be open with them!

In Conclusion

Throughout my renovations, I’ve learned about the importance of comprehensive planning, especially when it comes to the budget. Do a thorough investigation, follow the process step by step, and your budget will become your ally rather than your worst nightmare.

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