Home renovation costs can ramp up pretty quickly. Even if we have a good understanding of the process and the material prices, excess expenditures can come out of the blue.
Naturally, all of us want to do a nice home renovation without breaking the bank. Things are much easier if you have experience with architecture and interior design as well as good taste. If you wish to make the best of what you’ve got, here are 6 budgeting tips for a home renovation that will surely help.
1. Create a list of priorities
One of the biggest home renovation sins is starting a project without knowing what you wish to accomplish. Most people want to do all these cool things, and somewhere along the way, they realize that they don’t have enough money for all of that.
So, setting a list of priorities should be the first thing you do. For example, you might want to focus on increasing livable space, or perhaps you want to add another bathroom. The general suggestion is to prioritize larger, more expensive things that you can’t easily change. Repainting walls or adding small details to them is something you can always do, but demolishing walls is much harder.
2. Compare costs to value
There are several sites and publications that focus on cost/value analysis. You should definitely get acquainted with this topic before starting any project. The analysis is performed based on the resale value of a home upon finishing the renovation.
Some people are prepared to pay top dollar for their projects, but that doesn’t necessarily mean they will get a proper value for what they’ve paid. So, it is very important to check several material suppliers and find the best options. The same goes for handiwork; try to find professionals who will do a good job without costing too much.
3. Consider the optimal financing option
Most people struggle with financing. In some cases, they either can’t find any options, or the available options are too pricey.
To properly analyze the situation, we suggest that you check the current state of your finances. How much money can you set aside for this project, and if something unexpected occurs, do you have enough money to cover extra costs?
If you’re really dedicated to such a massive project, you should definitely consider getting a reverse mortgage as a way to offset costs and get more money upfront. It is a simple and reliable method, and most reverse mortgage companies will give you cash within days after making the request. To see how much you could qualify for, check out a reverse mortgage calculator.
4. Get informed in advance
One of the best ways to get extra information is by simply talking to people. For example, you can talk with friends who are doing business within the construction industry or friends who have recently finished a similar project. Not only can they recommend the right people for the job, but they can also suggest some guys who give cheaper services.
Another important thing is that these guys can tell you what not to do. You can make all sorts of mistakes during a renovation project, some of which can be extremely expensive. So, talking to knowledgeable friends is perhaps the best way to save money.
5. Create a list of needs
As mentioned, you should always prioritize some things over others. At the same time, that doesn’t necessarily mean you should narrow your scope. Create a list of all the things you want to accomplish and put them in descending order from the most important to the least important.
You need to present this list to contractors. They can provide an offer based on your desires, going through each bullet point and assessing how much each one of them will cost. That way, you can determine what you want to leave on the list and what to remove.
6. Check the material market
In most cases, the price of renovation is directly connected to the current material prices. Sometimes, when the market is going up, it isn’t necessarily connected to supply and demand. Instead, it is a reflection of increasing material costs or high inflation.
Researching materials is very important if you want to save money. Checking the suppliers and getting their offers is something you should spend the majority of your time on. Among others, you should check the prices of bathroom tiles, floor materials, appliances, wall materials, and so on. If you want to save as much money as possible, there is a good chance you will have to cut corners with materials going with cheaper solutions.