Budgeting for Home renovation
Whether you are renovating the house you live in or a new house you plan to move into, budgeting for renovations isn’t a simple task. The first step should always be to determine what you want and what is important. You should then proceed to ascertain how you’ll finance the renovations. Getting a loan from a bank or a loan lending company are options you can use to finance your home’s renovation. However, it is important to make sure that you only go for reputable banks and loan lending companies. Having a look at loan companies reviews will help identify reputable loan lenders. With a rough idea of the amount needed for renovations, you’ll be able to make informed decisions on the appliances, finishes and other renovation features that you may need. It is important to keep in mind that most renovations end up having a higher cost than originally intended. Hence, it is essential to make sure that you always set extra money aside for the extras. This should be particularly the case if your renovation will involve making structural changes which may involve tearing walls down. This article seeks to help those going for home renovations set a realistic budget by detailing steps that should be followed.
Give remodelling needs a priority
When it comes to home renovation, the easiest way to make sure that you stay on a budget is by knowing what precisely you want. Have a list detailing all that the project includes and differentiate items into needs and wants. Some important questions to guide you while creating this list include
- What is the main aim of the project?
- What is needed to implement it?
- What can you splurge on?
- What can you compromise on?
Come up with a more thorough remodelling plan having cost estimates
After you have a rough picture of what your home renovation should look like. Now create a plan that is more detailed and which comprises the projected costs. In a spreadsheet have each part of the project and the expected material and labour costs. Some important tips that will help you in the process of developing cost estimates include.
- Select you preferred finishes and fixture and compute what they’ll cost you. Some of the items to include are faucets, paint, knobs, flooring and tiles. While doing your estimates, ensure that you include shipping costs and taxes.
- Various online resources can help estimate costs, such as labour costs for plumbers, engineers, and contractors, ensure you use these tools. An important point to note here is that labour costs typically account for 20 to 30% of a project’s total budget.
- Ensure that you have given a thought to other incidentals that you will incur during the project. For example, consider if the project will need you to relocate to a new house, consider the cost of boarding pets and other such costs. Ensure you include them in the spreadsheet.
- By having a thorough plan, comprising of your preferred fixtures and finishes, you will be able to have more fruitful discussions with contractors purely concentrating on time and cost estimates.
Have multiple contractors bid for your project
After having a detailed analysis of what you need and knowing what you can afford to pay, you can look for contractors who can work within your budget and specifications. Make use of online reviews such as newchic reviews to find reliable companies. Some important points that will help you select a good contractor include;
- Have interviews.
- Have conversations with your contractor on how you will approach potential unforeseen issues and how they will impact the budget.
- Ensure that your contractor has a comprehensive understanding of your requirements and has a clear idea of how parts of the project will be prioritized and planned. Ensure that you also discuss any changes or time delays that may potentially happen.
While considering bids be very carefully if there are contractors with estimated costs that are way below those of others avoid such. While cheap labour may seem attractive, be cautious about such contractors as they tend to have additional costs later during the project. Negotiate with your desired contractors using competing bids. If you find that not a single contractor’s estimate suits your budget, make changes until where you’ll feel comfortable. Use the list you made of needs and wants to eliminate the less important project parts. After you have chosen a contractor, request them to look at your home renovation budget and project plan to see if you may have overlooked any costs. Before the work begins, ensure that you also use the contractor’s estimate and feedback to update a final project plan that still stays on budget.
In conclusion, budgeting for a home renovation can be challenging especially for newbies, with this article; however, you have a stepwise guide that will be beneficial through the budgeting process.