The shock and surprise of getting a final bill on a home remodeling budget is a cruel reminder that budgeting often goes awry. That doesn’t have to be the case, though. It takes some careful planning along the way, but when done properly, a solid home remodeling budget can be set in advance, and the project can be kept on point along the way, which is just as important as setting the budget to begin with. Learn how to get started setting a budget for home remodeling here.
Start With A Number, Not a Dream:
The best way to avoid a budget spiraling out of control is to start with a hard ceiling that cannot be crossed. This might be $10,000, $50,000, or $100,000, and it depends on the space or room being remodeled, as well as the finances of the homeowner, of course. There is no “right” number, but online research can help reveal average costs to keep things in perspective. (Check out this article about home remodeling budgets from Home Advisor.)
Consider Add-on Costs:
There’s often more to squeeze into that number than is realized at first. Adding an extra 10% contingency to the budget should be standard. Otherwise, subtract that 10% from the overall budget to build it in, and only work with the remainder as actual usable expenses.
Prioritize Individual Features:
Once the hard line has been set, then it’s time to go back to that dream. For most people, going big for every single component or feature will quickly crush the budget. So start prioritizing the list to determine what’s absolutely essential, what can be comprised, and what can be done without. Whether it’s cutting edge kitchen appliances, custom cabinet work, beautiful hardwood flooring, or anything else, start with the key components and work from there.
A hard number has been set, and priorities have been declared. Now do some research. Is the plan realistic or possible that you’re setting out to do? What are the average costs in a particular area, or for the type of remodeling project that’s being undertaken? What can be adjusted or tweaked to help cross the bridge from dream to reality? Where can costs be cut if they need to be?
Get Estimates From Contractors:
Just like shopping for a car, there’s no need to sign the contract from the first dealer, after the first test drive. It’s typically helpful to get multiple estimates from different contractors, and to see how they differ even based from the same starting point. The meet and greet with different companies and individuals also allows a homeowner to pick a good fit for the type of person or people they’re trying to work with, getting on the same page for decision making, deadlines, and so forth.
With the above steps in mind, anyone should be able to create and stick with an effective home remodeling budget. Be sure to find the right contractor, and to receive an accurate, detailed estimate from them before agreeing to undertake the project.