Determining a budget for your home renovation project is one of the most important pieces of a successful remodel. So how much should you budget for your renovation project? This is everyone’s burning question, and unfortunately, there is no easy answer. As you know, there are many factors to take into consideration for establishing a budget for your project, many of which depend largely on taste and personal preference. However, below are a few tips that can help anyone when it comes to budgeting for a home renovation project.
3 Tips On How To Budget For Your Home Remodel Project
Make a list of everything you want included, and understand the costs associated with each
As mentioned in my article on the 3 Phases of a Home Renovation Project, you will spend ample time in the initial planning stages talking with your builder to determine the scope of work and consulting with your designer to select materials and finishes. It is in both of these steps combined that you will gain a better understanding of the costs associated with each item on your list. The builder or contractor will likely have a set fee for implementing the work, but the selections you make on materials and finishes can drastically impact the cost. Higher end, more durable materials will naturally cost more than lower end, less durable materials. Similarly, selecting products and materials from local and/or ethical and sustainable suppliers can also drive up your costs. This is where you will need to spend a little time figuring out which items on your wish list are most important to you, and where your value lies. This leads us to the next tip on the list, defining what is “non-negotiable”.
Review your complete wish-list for the project and determine which items on this list are considered “non-negotiable”
After creating your wish list and going through each item with your designer, you will want to highlight which items on the list are most important to you and therefore deemed as “non-negotiable”. These are the items you are less likely to budge and compromise on when making your selections. For example, when it comes to prioritizing, focus on the luxury items first such as tile and countertops. You can then work with your designer to value engineer other items, such as lighting and hardware, which can easily be upgraded over time. All of your home details are important, but only you can decide which ones take priority over others. Establishing your list of non-negotiables will help you down the road in the event costs become too high and you need to cut items off the list or downgrade to a more affordable option.
Add a buffer to plan for the unexpected
Lastly, it is a good rule of thumb to build in a buffer to your overall project budget in the event that unexpected items come up. Although you are working with a team of qualified experts from the builder to the designer, it is inevitable that unexpected issues may arise during the execution phase. Even in cases of meticulous planning and thoughtfulness, unexpected costs can occur and just in case this happens, it will help soften the blow if you lead with appropriate expectations and plan for a few hiccups from the beginning.