How To Stay Within Your Home Remodeling Budget

Staying Within Your Home Remodeling Budget

And Avoiding Unforeseen Renovation Costs 

Living through a home remodeling project can be challenging. But one of the hardest parts of any home renovation is keeping to a strict budget, especially if money is tight. From unexpected surprises like outdated wiring or plumbing that isn't up to code, to champagne tastes when it comes to finishes, keeping your project's budget on track is not easy.

The good news is that with a little preparation, some knowledge, and discipline, you can stay on track. Here are a few tips to help you get started and keep within your home remodeling budget.

Start With A Plan

Staying on a budget really comes down to a couple of practices. The more planning you do from the beginning stages, and the fewer changes you make throughout the project, the better your chances of staying on budget. Take some time before you engage a contractor to figure out the scope of your project and get a sense of how much work is really needed so that you're in a position to make informed decisions when you're given options.

Take some time and educate yourself about the different materials choices and their general costs versus labor costs. Materials can really drive up a budget. This is where working with a knowledgeable contractor, or design-build professional can really help. They will be aware of the latest materials. They can help you to make educated decisions about alternative options, for example, natural Carrara marble countertops versus marble patterned quartz, or wood-look porcelain flooring versus hardwood.

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The more educated you are in terms of your options and what you want, the better position you'll be in when it comes time to choose a design-build firm. By having a clear creative vision, and a basic understanding of what goes into a successful project, you can better choose the right firm to partner with.

Choosing the Right Firm: Don't Rush The Bidding Process

a clear process is key. bidding takes place during step 4 of our process.

The firm you choose to hire and partner with to complete your project is probably the most significant decision you'll make in the entire process. When vetting firms, get a minimum of three bids on your project. By creating a plan, you'll have a reasonably good idea of the scope of work and level of materials you'll be working with. Make sure to give any firm you're asking to submit a bid a copy. This will allow you to receive comparable proposals to better make a decision.

When seeking firms ask around. Get "word of mouth" references from friends or co-workers. Check reviews on sites like HomeAdvisor or Angie's List. You're looking for a contractor that can execute your creative vision and offers a high level of craftsmanship. You want to partner with a firm that you can work well with, and can accomplish your goals, on your terms, in your timeframe, and within your budget.

Where to Save, Where To Splurge

Education is a critical element when it comes to staying on budget. To that end, an important skill to develop is understanding where to save and where to splurge. There are some aspects of a home remodeling that are more than worth the cost, for example, a piece of high-quality furniture that will give you a decade of service, or a natural stone kitchen countertop that will add significant value to your homes.

If you're working with a design-build professional, they can best advise you on which elements of your remodel where a high-quality product is important. Typically, items like windows and doors, or appliances are worth spending more on, while cosmetic finishes are an excellent example of where you may want to look for sale prices.

Also, your contractor will be aware of the latest materials, technologies, products, and finishes available. They can often direct you toward a more budget-friendly choice in terms of alternative options. For example, advances in manufacturing have given homeowners more choices in flooring, tile, countertops, and other materials that can give you the look of more expensive products at a much more affordable price point.

Be Prepared: Surprise Home Remodeling Expenses To Watch Out For

With any home remodeling project, you should plan on having a contingency fund available. Many professionals recommend having at least a 15 or 20 percent cushion in your budget for unexpected expenses. Ask any homeowner who has gone through a home improvement project, and they'll tell you that you never know what you'll uncover once you start ripping up walls and floors.

Here are some potential budget busters to plan for:

• Paint or Supplies

One great way to save a bit of money is to take on jobs like painting yourself. It's a relatively simple DIY project that can end up saving you significantly. If you're changing a room color from a dark color to a lighter color, it can often take a bit more paint than you expect.

• Floor Vents, Light Switches, etc.

When you rip out walls and floors, you'll most likely have to replace finish materials like floor vents and light switches. Your contractor may give you a price based on recycling or reusing some existing materials like light switch and plug covers, or floor vents, only to find that they need to be replaced. While it's not a ridiculous cost, it can add several hundred dollars to your budget.

• Water Damage, Infrastructure Upgrades

Water or structural damage is no joke, and it can often remain hidden until the demolition phase of your project. While most contractors will build a cushion into the budget to cover unexpected surprises like water damaged subflooring, or wiring that needs to be brought up to code, you most likely will not find these issues until after the project is underway and the budget is agreed upon.

While you may not be able to plan for everything, and you may have unexpected surprises come up during your project, a 20 percent contingency will keep your budget on track should any unexpected expenses come up. An excellent design-build contractor will work closely with you to maximize your budget and help you to make the right choices for your project to meet your aesthetic and functional needs.

If you're planning a home remodeling project and you live in the greater Madison, Wisconsin area, give the experts at Degnan Design-Build-Remodel a call at (608) 846-5963. Since 1981, we've been providing homeowners with award-winning designs to meet their creative goals, lifestyle, and aesthetic and functional needs, on time and on budget!