Sticking to a budget is never a walk in the park. Renovating a house on a budget is an even bigger challenge. When it comes to home renovations, coming up with a feasible budget requires plenty of research and a detailed plan.
Renovating a House on a Budget
This article outlines some tips on how to renovate your house on a budget. We’ll consider some tips that will keep you from overspending on your next remodeling project.
Cost of Remodeling
Generally, renovating an older home tends to cost more than a newer one, especially if the plumbing, wiring and other features aren’t up to code. When deciding on a renovation budget, it can be more affordable and easier to prioritize projects by room and build a budget around the cost of each individual home improvement project.
Determine Financing Before Finalizing Your Budget
Before setting a renovation budget, determine how you’re going to finance it. If you’re applying for credit, taking out a loan or paying in cash, your renovation budget will need to fit within the limit of your available funds. Once you have a budget, set aside about 15 percent of your available funds for miscellaneous expenses.
Prioritize Remodeling Needs
Knowing exactly what you want is the easiest way to stay on budget. Create a list of everything you would like to include in the project before separating them into wants and needs. Ask yourself these questions:
- What do you want to achieve from the renovation project? New unique flooring, changing up the color of the walls, etc?
- What details do you need to achieve your goals?
- What are you willing to splurge on?
- What are you willing to compromise on?
Create A Detailed Plan with Cost Estimates
Once you’ve set a goal for the renovation project, come up with a detailed plan that includes all the costs you expect to incur. This will help you to not only build a budget but also communicate exactly what you expect from your contractors. You can build a spreadsheet that includes each of the project’s portions with estimates for materials and labor for every room such as bedrooms, kitchen and more. Consider creating a plan that’s detailed enough and includes your choice of fixtures and finishes, if you want to change or add new windows and such, which will allow you to focus your conversations with contractors on time and labor estimates.
Request Bids from Several Contractors
Now that you have everything that you need, it’s time to find a contractor that can complete the project within your budget. The secret is to get bids from at least three contractors so you can compare costs. Make sure the contractor understands your needs, check their references and complete interviews. Be wary of extremely low bids and consider cutting down on the project if none of the contractor estimates fit in your remodeling budget.
There are plenty of additional tips on renovating a house on a budget. You can further reduce costs by ordering fixtures and finishes yourself in the home project, completing the demolition yourself, shopping used, doing your own painting and being your own project manager. By taking these careful steps, you should be able to complete your renovation on a budget.