Creating a renovation Budget!

Whatever your reasons for renovation, developing a renovation plan with a workable budget is a big project! Use this systematic guide to get the renovation you want at the price you can afford.

Setting Goals.

The first thing you need to do before worrying about the budget, is to set your goals. Write a list of things you would like to accomplish with the renovation. Put all your thoughts on paper so you can decide which aspects are must haves, which are niceties, as well as those things for whatever reason you will not get done. The more specific your goals are, the better. Don’t just write things such as “renovate the bathroom”. Really itemize which elements of the area you would like to change. The more you want to do, the more expensive it is likely to be. To estimate costs, you need to get a handle on how extensive you want it to be.  You need to know exactly what you want before you can determine a budget. The best way to do this is to put it all in a format you’re comfortable with and go back and update if necessary

Determine the Professionals and Equipment you need.

Now that your list of goals is complete, it’s time to decide which professionals you need. Several different groups of people complete home renovations, depending on what is being done. Sometimes, even by you.

Any building or remodel, for example, is usually completed by contractors who will hire and supervise a construction crew. If your renovation is structural, involves new uses, adds new wings, or changes shape and size, you may need an architect or design firm that will advise you on zoning and regulations in your area. If you are doing interior redesign, you may want to hire a designer. Changes to plumbing or wiring usually require a plumber or electrician, respectively.

If the renovation is small, you may want to hire individual workers. For instance, if your renovation is new kitchen shelving and paint, a handyperson, carpenter, or painter may be all you need.

While roughly 85 percent of renovations require professional help, many homeowners prefer a do-it-yourself (DIY) option. If you are handy, DIY can be a great alternative. It can also help your budget by shaving off labour costs.

Your local equipment store is the best choice for renting equipment for whatever project you have in mind. Just remember, if you must call it quits and hire a professional after completing part of a renovation, it could end up more expensive. Certain areas are also complicated to have a try yourself. Zoning, regulations, plumbing and electricity are examples of areas where DIY should only be considered if you are experienced.

Figure Out Your Budget

Now you have a wish list and a sense of who would be required to fulfil it, is time to figure out what you can afford.

Renovations can be pricey. The average kitchen renovation costs $20,000. The average bath renovation costs between  Be aware that many factors contribute to costs in addition to square footage. Finishes and material vary in cost. Types of fixtures and appliances cost different amounts as well.

Always add roughly 20 percent as a contingency budget. Remodels are famous for always costing more than originally estimated and for taking more time. Finding termites when a wall is torn down, for example, is going to cost more, because you are going to need an exterminator and perhaps damage repair. Issues like that add up, so always plan for a 20 percent addition.

Get Estimates

So, now you have a list of what your ideal renovation entails, which professionals you will need, and a ballpark budget. What now?

Next, call three professionals of every type, explain what you are looking for and ask for cost estimates. Giving estimates is part of their process, and gives you an opportunity to see if they can meet simple tasks on time and in sufficient detail before hiring them. Finding the right professionals for the job at hand is key to a successful experience.

Be sure to give all three the same list to estimate. You want renovation cost estimates that are comparable. Research professionals. Ask friends and family for references. Look at reviews online. Renovations can cost a significant amount of money, and you want to make sure you spend it wisely.

Be honest about your budget. You do not want to engage contractors for more than you can spend. The point is to enjoy your renovation, not to go bankrupt as hammers swing. Tell them approximately how much you have to work with. Good professionals can make suggestions about how to work within your budget. Perhaps a full kitchen remodel will be within your means if you use a laminate flooring rather than wood, or hold off on new appliances until next year.

Review and Revise if Necessary

After you get all the quotes, roll up your sleeves on some calm weekend morning, sit down and review them. Be critical but fair. If the estimates came in well within your budget with the 20 percent contingency included, all is well and good. Pick the best person from the references you called. Be sure to factor in price, rapport and quality. But it is also common at this point to need to revise renovation plans. If the quotes are above your budget, there are many ways to make it work. Here are three strategies:

Do It Yourself

If you are comfortable with doing DIY,  it will certainly cut costs. Make a plan to do it yourself. Be sure to factor in that a DIY project may be more time-consuming. That means it may also disrupt your home for a longer period of time. A key is to stay within your expertise range and only tackle those projects you have a degree of confidence that you can complete well.

Scale It Down

You make a list of everything you want early on in part so that you can revise it later. Be creative with how you scale back. The estimates can really help you here. If you downgrade one item you may be able to upgrade or have room for another. You can also scale renovations down by deciding to do them in different time periods.

Consider Cost-Saving Methods

Consider some cost-saving methods as well. Often suppliers will charge less for floor models or models about to go out of production. Stores have clearances for renovation material just as they have clearances for everything else. If you can time the purchase of tile, carpet or flooring to a sale, why not?

Ask if your professionals are amenable to discount pricing in their less busy months.

Other Home Renovation Considerations

There are other important factors you should consider before embarking on any home remodeling project and they include the size of your home, its age, and any permits you may need. Check out the details below for more specific information.

Home Size

Obviously, the larger your home is, the greater potential there is for a higher costing renovation. Extra or larger spaces take more materials and time to overhaul so consider this into your budget before taking on more than you can financially handle.

Property Age

You would think the age of your home should not matter but it can play a big part in a home renovation. The older the property is, the more risk there is that contractors will find outdated materials which can generate a host of potential hidden costs. If you plan on tearing out or cutting up a room, you need to plan for the likelihood that a contractor will find something that is not up-to-code that may need to be replaced.

Obtaining Permits

There are few things that will shut down a renovation project quicker than not having the correct permit(s) for the task at hand. If you skip the permit you could face large fines, the project is halted, and you could be forced to put the space back to its prior-to renovation stage. Whether your project is electrical, plumbing, structural, or something else, obtain the necessary permits and have peace of mind knowing you are working within the existing provisions per applicable laws and rules.