Before going into your home renovation projects, you have identified your home renovation budget and even need to know what are the best return on investment plans. Budgeting for home repairs is always a big challenge for homeowners. When it comes to home renovation costs, creating a viable budget requires a detailed plan and a lot of research.
Are you planning your home renovation projects, then this article helps in planning your home improvement budget. Learn some tips about home improvement budgeting from LiteFin.
How Much Does It Cost to Remodel a House?
According to Rocket Mortgage, the average home renovation cost on a single home renovation project is $13,000. Depending on the type of home and project, the recommended average expense for remodeling projects will vary.
The average cost to completely renovate a house is $15,000 – $200,000 Depending on the features of the build, the price may vary drastically. The final price tag usually depends on any structural or mechanical repairs, square footage, underlying issues, location, and materials used.
When you decide on your home renovation budget, it can be easier and more affordable to prioritize projects by room and build a budget around the cost of each individual project.
Suggested Spend by Project
|Project Type||Suggested Spend (based on home value)|
|Attic or basement||10 – 15%|
|Siding||3 – 5%|
|Windows||3 – 4%|
|Patio or backyard||2 – 5%|
|Roof||2 – 4%|
|Standard Bedroom||1 – 3%|
How to Budget for Home Renovations?
1: Give Priority in Re-modelling
It would be better if you prioritize your home improvement project. This will help you spend only on what you really want to do. Suppose if you only want to renovate the kitchen area then plan for that only. By doing this you can save your money from unnecessary expenditure. Make a list of everything you want to include in the project and then separate the items into wants and needs.
Ask yourself these questions:
What do you want this project to do?
What details are required to make that happen?
What are you willing to compromise on?
What are you willing to splurge on?
Process 2: Prepare Remodeling Plan with Cost Estimation
Now that you have set a goal for your home remodeling, create a detailed plan that includes all costs such as labor cost, material cost and other miscellaneous costs, and prepare a spreadsheet of the amount needed to meet the goal. This will help you create a remodeling budget and communicate exactly what you want with your contractors.
Ways to develop cost estimates:
Always use resources like home guides to plan. They will guide you in preparing a complete estimate of labor cost for engineers, architects, plumbers etc.
Choose fixtures and finishes and calculate what you will spend on them. Include paint, knobs, faucets, tile, flooring, and anything else you’ll need. Be sure to include taxes and shipping costs in your material estimates.
Include the equipment you want and what you expect to spend on them. Include the cost of installation, delivery, and how you plan to dispose of the equipment
Process 3: Request Quotes from Multiple Contractors
You have now drawn up an estimated cost of home improvement expenses. Now you can know how much you can afford and how much you can afford to pay for home repair projects. Find now the best home improvement planner who will offer you the best service and best discounts to complete your home renovation process.
Talk to several local service providers with good reviews and ask them to make an offer for your home improvement projects.
Why and when to choose home improvement projects
Complete the interview and check their references.
Be very clear about both your project and your remodeling budget. If your contractor knows you’re sticking to a tight budget, they’ll be more likely to talk with you about additional expenses, time delays, and project changes.
Make sure the contractor thoroughly understands your needs and has a clear idea of how you plan to prioritize certain parts of the project.
Talk about how you will deal with any unforeseen issues and how they will affect the project budget.
Fitting Everything into Your Budget
Once you are well set with your goal, start a goal account in your budget so that nothing is spent on your credit. The primary benefit when doing this is that you can avoid costly interest payments and time. The main drawback of using credit is that it allows you to take on the burden of buying things earlier and paying interest. The bigger your goal, the more time you have to save for it. Start making budget adjustments now, and you’ll reach that goal quickly.
Partner at LiteFin