How to Budget for a Home Renovation Project

Quality of Materials

High-end finishes and custom fixtures will drive up costs. While splurging on certain elements may be worth it, you should be prepared for how much premium materials can inflate your budget.

Labor Costs

Depending on the complexity of the project and the experience of the contractors, labor costs can vary widely. Don’t forget to factor in the price of skilled professionals like electricians, plumbers, and carpenters.

Permits & Regulations

If your renovation requires permits, this will add to your expenses. Costs for permits vary depending on your location and the type of work being done.

Finishes

The final touches, such as hardware, lighting, and paint, often add up quickly. These smaller details are easy to overlook but can eat into your budget if you aren’t careful.

Appliances and Furniture

If your renovation includes new appliances or furniture, these will need to be factored into your total cost.

Hidden Costs to Watch Out For

It’s easy to overlook certain costs when budgeting for a renovation. Once the walls come down, you may find issues like mold, water damage, or outdated wiring that need to be addressed before proceeding with the renovation. In older homes, it’s common to discover that the electrical or plumbing systems aren’t up to code, which can result in additional, unexpected expenses.

If the renovation renders your home uninhabitable for a period of time, you’ll need to account for temporary housing, whether it’s staying with family, renting a place, or a hotel stay. After construction, you may need to pay for a professional clean-up crew to make your home livable again.

Estimating Total Costs

Research average costs for the type of renovation you’re planning and gather estimates from contractors and suppliers. Use this information to estimate the total cost of your project, making sure to include a buffer for unexpected expenses (typically around 10-20% of your total budget).

Allocating Funds for Each Phase of the Project

Break down your budget into phases: planning and design, demolition, construction, and finishing touches. Allocating funds to each stage of the project will help ensure you’re financially prepared at every step.

Finding Cost-Effective Solutions

There are plenty of ways to achieve a stunning renovation without blowing your budget. Consider these cost-effective strategies:

• Mix high and low-end materials. Splurge on a few standout pieces, like countertops, while saving on more affordable cabinetry or fixtures.

• Refurbish instead of replace. Sometimes refinishing old floors or repainting cabinets can give you the look you want without the cost of all-new materials.

• DIY where it makes sense. If you’re handy, taking on small tasks like painting or installing hardware can save on labor costs.

How to Handle Unexpected Expenses

No matter how well you plan, surprises are bound to pop up during a renovation. Make sure to have a contingency fund built into your budget, usually 10-20% of your total renovation cost, to cover these unexpected expenses without derailing the entire project.

Working with Contractors to Stay on Budget

Clear communication with your contractor is key to staying within your budget. Set expectations upfront, ask for regular updates on spending, and make sure any changes to the project are discussed in terms of cost implications before proceeding.

Planning a home renovation is a big financial commitment, but with the right approach, it doesn’t have to be overwhelming. At DeLeers Construction, we’ve helped countless homeowners turn their renovation dreams into reality while staying on budget. Reach out to us today to learn how we can help you plan and manage your next renovation project.