Home renovation projects come with a large amount of planning, including financial planning. Just like buying a house, renovating your house is a huge financial decision that requires saving, budgeting, and oftentimes financing.
To avoid budget-related stress, here are a few key tips to keep in mind when budgeting for your own home renovation project.
Work with an all-in-one contractor
Your home renovation project includes several factors, including architecture, design, and engineering. Working with several contractors and teams usually means lots more meetings and lots more checks to send. Because your designer isn’t working with your architect or the contractor who will be on-site at your project, they’re unlikely to all be on the same page about your project and its budget.
By working with a contractor who has an entire design and construction team in-house, like DYM Builders, you’ll ensure all of your teammates are working off of the same plan and the same budget. And you’ll only pay one bill to one company.
“It makes the process one hundred times easier and seamless for the client,” says David Malka, co-founder of DYM Builders.
Get a ballpark figure once your designs are ready
Knowing exactly what your renovation will cost before designs are finalized is very tricky. Most contractors might be able to give you a price range before drawing up blueprints and designs, but you’ll have a much more accurate number once those plans are finalized. Most contractors are able to generate a price based on similar projects they’ve done in the past.
Planning your renovation well ahead of time helps your contractors schedule work, submit necessary permits, and order the materials they need. These plans, which often include blueprints and 3D renderings, can also help you see your project come to life before you break ground — or put any money down.
Adjust plans as needed
If the ballpark figure your contractor gives you after finalizing plans is outside your budget, you can work with your designer to bring your costs down.
“We can customize a project to the customer’s budget based on the aesthetics and the look that they want,” says Malka.
Several factors of your home renovation project will affect its cost. For example, using entirely custom cabinetry in your kitchen costs much more than using pre-made cabinets or even partially-custom cabinets.
The finishes you choose will greatly change your budget as well. Genuine hardwood flooring will cost you more than vinyl flooring, just like how marble will cost you more than ceramic tile. Working with a contractor who has connections with vendors can also help, so they can get you the exact prices certain materials will cost.
Budget for unforeseen circumstances
Like anything in life, home renovations can go off track. Sometimes you’ll run into unforeseen circumstances during a home renovation, such as faulty electrical that needs to be replaced, load-bearing walls you’ll need to work around, or delays in labor or the arrival of materials. Your contractor should be able to know about most of these circumstances up front, but some may arise during your project.
To ensure you have enough funds for your project, make sure to budget a bit over the ballpark figure your contractor gives you.
Have your funds ready up front
Construction projects work in stages, meaning you’ll have to pay your contractor throughout the project, not just at the end or at the beginning. To ensure your work can be completed on time, make sure to have all of your funds ready before the project starts.
“You cannot move forward unless the stages have been completed and paid for,” Malka comments. “If the funds are not available, it will potentially affect the process of the project.”
Whether you’re paying in cash or have financed your project, keep the funds in an account that you can easily withdraw or write checks from.
Once you have the funds ready and your plans finalized, you’ll be ready to start your home renovation stress-free!