Home Remodeling Budgeting 101

Budgeting For Home Renovations

From time to time, everyone gets the urge to do a home renovation project. Maybe you just want to change one thing about your house (pink bathtubs from the 1970s, anyone?) or perhaps you’re gunning to overall the entire layout of your abode. No matter how big your upcoming project is going to be, it’s critical to create a budget first.

There are a few things you need to do in order to develop a stable home remodeling budget. You will learn about some key steps as you continue reading. By the time you reach the final paragraph, you should have such great confidence in your ability to prepare an appropriate budget for your project. If, however, you need additional assistance, don’t hesitate to ask your contractor for some help.

Estimate the total cost – Most real estate experts recommend never spending more to remodel a room than it is worth in relation to the overall value of your home. This is not, of course, a hard and fast rule, but it makes sense, especially if you’re planning to sell in the near future. If you haven’t had a recent appraisal of your house, now would be a great time to do so.

Once you have an idea of how much you should spend, it’s a good idea to do some preliminary shopping to estimate how much the materials you want are going to cost. This can be very cursory at this point, but it will help you get a goal price on paper.

-Ask local contractors for quotes – It’s a good idea to get quotes from three or four contractors before you decide who to hire. This way, you can compare their rates and consider which company you like best overall.

Getting quotes will also help you hone your budget, as you’ll have a better idea of what you can expect to spend on both labor and materials. Hatch Homes provides professional, respectful consultations where you can ask questions and get the answers you need before you sign on the dotted line.

-Don’t veer from your plan – Once you’ve selected your contractor and your remodeling project gets underway, you might be tempted to add small projects as you go along. While each of these little add-ons might not seem expensive at the time, they add up quickly, potentially adding thousands of dollars to your home renovation costs!

If you don’t want to break the bank, stick to your original remodeling plan. There’s no reason you can’t save to do additional projects down the road; your wallet will thank you!

-Plan for unexpected expenses – Very rarely do home remodeling jobs go-off without a hitch. You should account for incidental expenses when you prepare your initial budget. Maybe, for instance, your contractors will discover they have to rerun electrical wires in order to take down a wall. Or, perhaps it will become apparent that floor joists you thought you were in good condition are actually rotten.

No matter what, it’s good to be prepared for these kinds of unexpected situations. As a general rule of thumb, you should have at least an extra thousand dollars of wiggle room in your budget.

The Hatch Homes team would love to make your house into your dream home. We look forward to helping you complete your remodeling project so you and your loved ones can enjoy your space even more for years into the future.

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