There’s a lot that goes into budgeting in general. When it comes to budgeting for home renovations, it’s in a league of its own. Budgeting for renovations is the crucial first step to success for large home improvement projects. It doesn’t matter what type of renovation you’re gearing up for, your budget can make or break the whole enchilada. To avert disaster, follow these helpful tips to ensure you get the most out of your renovation without the anxiety that comes with funding one.
The very first thing you want to do with any renovation is research. Simply searching online for the average cost of your intended renovation gives you an idea of what to expect. There are a lot of things that will affect your final cost, such as materials, but national averages let you know what to expect.
To lessen the obscurity of what materials will cost, you can price items you’re thinking of using online, or in stores personally (not a bad way to spend a lazy Saturday – browsing the aisle for both inspiration and information). This will also give you an idea of what you want and can afford.
In addition to pricing materials and researching contractors, you’ll also want to look into permits, HOA regulations, and inspections. You’ll want these things taken care of prior to breaking ground to avoid any trouble down the line.
You’re not likely to have upwards $20,000 lying around and at your disposal. It’s common to acquire your funds through a bank with home equity loans or lines of credit, or credit card offers. When considering the various ways to borrow, it’s important to factor in the payback sum as much as what you qualify for. You don’t want to bite off more than you can chew, basically.
Once you’ve sufficiently sourced your funds and contractor, and finalized your vision, it’s time to get technical and make a spreadsheet. If there’s one way to lose control of your budget, it’s not paying attention to where all the money is going. Creating an itemized budget – and printing out copies for you and your contractor to reference regularly – will keep you in check every step of the way.
Don’t forget to allot 20% of your final cost to emergencies. You can use it for decorative purchases or pay it straight back if it doesn’t get touched in the end, but have one built in to avoid major problems.
When itemizing, it’s important to think of all the extras and small stuff that might seem innocuous to a budget, but can add up over time. If you won’t have use of your kitchen for a period of time, set aside money for dining out during that time. If you need to store larger items at a facility, account for the storage unit and rental trucks transporting to and fro. A night at a hotel while something cures overnight is another $200 you will need to come up with. Again, they’re small purchases, but accumulate and eat into your funds.
There are a number of ways you can reduce your final cost, such as using recycled materials or searching the bargain stores like Habitat for Humanity or wholesale liquidators. You can assist with the demolition and take over painting or wallpapering. When all is said and done, it will be expensive, but manageable and worth it.