One of the first things you need to do before going forward with a home renovation project is to create a budget. A budget will help you figure out how much you can pay for materials and labor, effectively molding the outcome of your decisions. However, it can be easy to overspend beyond your budget if you aren’t careful. You definitely don’t want to put your plans on hold just because you’ve run out of cash to continue. Here are some proven ways to prevent yourself from going over budget on your home renovation project.
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Consult with a professional
No matter how meticulously you’ve planned your budget, it’s still helpful to get a second opinion before you go through with it. Speak with a general contractor, realtor, and designer who will let you know if your budget is realistic and possibly offer alternative options and low quotes. Make sure you clearly communicate your goals and intentions for the project so that they can best assist you.
Prioritize certain features
It’s tempting to want to renovate every single thing about your house, down to the tiniest detail. But you may very well be going overboard and over budget. Rather than looking at the bigger picture, it’s more practical to think about the finer details. List down the most important things you want to remodel that aren’t negotiable and prioritize these details first. The rest can come later if you still have room in your budget for them.
Stick to a schedule
The longer your project goes on, the more money you have to spend on labor and materials. Make sure to come up with and stick to a detailed timeline with milestones you expect everyone to meet. Keep your team in line by posting this schedule up on the worksite for everyone to see. You should also maintain a detailed list of all your expenses so that you can make sure that you’re still spending either below or within your budget.
Give your budget some allowance
Once you’ve listed down the necessary expenditures for the project, you should add at least 10% to 20% more to your final total. This will give you the flexibility to spend more money if ever something goes awry. Make sure that you actually have that amount of money on-hand even with the extra contingency added on top of your total amount. If you don’t have enough money to cover the entire cost of the project including the added allowance, then it’s time to reevaluate your budget and scale it down.
Canvas for exact prices
When listing down your possible expenditures, you can’t simply base the prices for materials and labor on a gut feeling or a general estimate. You’ll need to get the exact cost of everything so that you can set aside the appropriate amount of money. Work with your contractor and designer to ensure that you get a detailed breakdown of everything you expect to shell out money for. Don’t forget to factor in any extra fees, such as installation fees or delivery fees.
Home renovations are a fulfilling project to undertake, but it can also be financially draining if you aren’t careful. These tips will help you stay within your budget so that you can carry out a successful and economical home transformation.
