Not all renovation projects go as smoothly as seen on tv. There are a variety of reasons that home renovation projects go over budget. Delays like waiting on materials, permits, or decisions to be made can lead to extra costs. Most contractors charge by the hour. Knocking down walls and changing the layout of a home can become more complicated than originally planned. Running out of materials can lead to buying things piece by piece at an additional cost. The bottom line is, you can’t expect the unexpected. However, if you start out with a smart budget from the beginning, these surprises won’t be as detrimental as they could be.
How to Make a Renovation Budget
Outline Your Goals
Goals tend to be twofold when it comes to remodeling. People want to transform their home AND spend the minimum amount of money possible. So, when it comes to goal setting, start by sitting down and thinking about both. What are the projects do you want to do? What is the maximum amount of money you’re comfortable spending?
When making your list of projects, it helps to be specific. “Renovate the bathroom” seems easy. But if you list out each and every step it’s going to take to get there, (replace flooring, switch out light fixtures, repaint walls, tile shower, etc.) you will begin to understand just how extensive your project is. And remember, each step requires materials and labor (AKA money!). Being vague with your plan leads to more surprises later on.
Some people dream big, and their list of projects is a mile long. If that’s you, it might be helpful to prioritize your projects and determine what NEEDS to be done now, what you WANT to get done, and which projects you can SAVE FOR LATER.
Determine What You Need
It all depends on the skills, time and equipment you have, but if you can do a project yourself, it’s a great way to save money! If you’re going to get your hands dirty, make a list of ALL of the materials you’ll need, including tools you don’t already have. Even go as far as picking out the materials and finishes you want to use. This will be a major factor later on when you start looking at prices.
If you’re not so much of a handyman, or don’t have the time, you’ll need to start looking for contractors. Whether you need an electrician, designer, plumber, or painter, take time to get a quote from at least two different companies so you can compare prices and get a good deal.
Do the Math & Calculate Your Budget
Now that you have a detailed list of what (or who) you need to complete your projects, it’s time to calculate the total. Look at the estimates you’ve gathered, materials you need, tools to purchase or rent, and add it all up. Once you have a number, consider adding 10% to your total to make sure there are no surprises along the way that hit your bank account where you least expected it. And now, TA DA! You have a probable budget for your home renovation!
Take a Step Back
Now if the number you came up with is causing dizziness, shortness of breath, or a panic attack of any kind, hold on. We’re not done yet! It’s better to be surprised by the price now when you have time to prepare than down the road. According to HomeAdvisor, the average kitchen renovation costs about $20,474 while the average bathroom renovation costs anywhere between $6,000 and $14,000. These figures can catch people off guard.
If things are going to cost more than you’re ready to spend, this is where you can reevaluate your goals and your list. Decide which things can be cut out or saved for later. Which projects could you do yourself instead of hiring help? How can you modify your plan to cut costs? There are lots of creative ways you can get the same look without breaking the bank! If you’d like help in this area, talk to the professionals you’re hiring and be honest with them about your budget. They can help make recommendations to save money.
You know who else would love to give you recommendations on your home renovation project? Our team at Missouri Home, Farm & Land Realty, LLC! Give us a call or click here to reach out on our website today!