Our Top Tips: Budgeting For Home Renovations

It is all too easy to become overwhelmed by the process of starting a home renovation. Despite our notions, home renovation projects do not have to be large-scale. It’s important to be realistic about what you need and want out of a home renovation, whether you’re looking to revamp your guest room or entirely overhaul your property, we have the perfect tips to keep you from breaking the bank. 

Hint: An extreme makeover doesn’t have to be your only option! 

1. Be Realistic

One of the most common mistakes homeowners make while budgeting for a renovation is underestimating the amount of money needed to finish the job. Ideally, you want to renovate your property at the lowest cost possible, but will that budget fit your list of needs and wants?

Tip: Make realistic estimates (which often means purposely adding a bit of a buffer on every expense) to avoid under-budgeting.

2. Get Contractor Quotes

Talk to contractors. They do this for a living. Even if you don't intend to actually use one.

Contractors will quote you based on your ideal plan, and how they would make it a reality—from manpower to materials needed.

Tip: Tell them your expected budget and see if they can work with it.

3. Plan Early

Don't leave anything until the last-minute! If you can, plan even the smallest detail with your contractor early in the process. If you’re renovating your bathroom, for example, you might want to check out new sinks. Mark down some prices. Get a sense of cost.

Tip: Make a spreadsheet and keep track of everything you find.

4. Be Specific

Contractors should know exactly what they're doing, but if the homeowner doesn’t really know what is to be done on the property, your quote will be vague and likely include many purposeful upsells.

Tip: As you gather quotes from contractors, make sure you communicate exactly what you want done.

5. Be Practical

An area in your home accounts for a certain percentage of your entire property. A kitchen, for example, may be considered 10-15% the house’s market value. Make sure to compute for this first, and try to calibrate it with your budget.

Tip: Even in home renovations, there's a rule of thumb—don’t spend more on the area you’re renovating than its ultimate potential value.

6. Plan For The Unexpected

Account for hidden costs! Make sure you have some wiggle room.  If a maintenance issue is uncovered, construction takes a turn because of the weather, or if your vision changes midway, you will avoid undue stress by budgeting flexibly.

Tip: Allot a buffer of around 15-20% on top of your budget for emergency circumstances.

Venture Philly Group

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info@venturephilly.com

o. 215.592.9522

1619 Walnut Street, Suite 500, Philadelphia, PA

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