Your house should feel comfortable now that you have some time to invest in making upgrades. Updating your home showcases your personality and makes the space more functional, but it can be a costly endeavor. Here are some ways to create a successful home remodeling project budget.
1. Do Some Projects Yourself
Doing some of the painting or demolition reduces your home remodeling project budget. Labor is a significant portion of the remodeling cost you might not have considered. The price will vary by material, size and how much a company charges for the work. By saving this money, you can splurge on more high-end items, such as granite countertops.
Here are a few more projects to consider doing yourself:
- Putting up new wallpaper
- Installing a new backsplash
- Updating cabinet hardware
- Re-sanding and finishing floors
- Adding window treatments
Leave the plumbing and electrical up to the professionals, but find a few areas you can flex your DIY skills.
2. Have a Plan Beforehand
Planning can reduce costs and help you stay on budget. Knowing the scope of the renovation allows you to estimate how much you need to save. Do you plan to do a full-blown renovation or update just a few items? Cosmetic changes like swapping lights or paint touchups are cheaper than redoing your roof.
The other important planning step is finding the right contractor. Contact and interview multiple people to confirm they understand your vision. Also, nsure they determine how much of each material the project will need. Meeting them in person gives you an estimate of the renovation cost in your local market.
3. Buy Quality Materials
Materials are another significant part of any home remodeling project budget. Keep in mind cheap supplies break down quicker, leading to more costly repairs in the future. Look for quality materials such as steel from trusted companies. Read the business’s reviews and ask friends for recommendations.
You could also buy materials online — just make sure they have a good warranty. Before placing your order, have the builder provide specific measurements. Then be onsite to inspect the materials when they arrive. Another idea is choosing one high-end piece to splurge on — like a tile backsplash — then buying cheaper items for the other design elements. You can find affordable and unique decor at salvage stores like Habitat for Humanity.
4. Consider Your Options for Financing the Project
When determining your home renovation budget, review loan options. These can work with your savings to ensure you can cover all expenses. A Federal Housing Administration 203(k) or Fannie Mae HomeStyle Renovation loan is a good choice. These allow you to borrow based on the future value of your house after the improvements.
Here are a few more options to consider:
- Home equity line of credit
- Cash-out refinance
- Personal loan
- 401 (k) loan
- Credit card
5. Make the Layout More Efficient, Not Bigger
Often many people think expanding a space automatically increases its efficiency. This is not always the case. Knocking down walls is costly and more time-consuming. Instead, try to reorganize the room. For example, remove bulky shelving and cabinet height pull-out drawers in the kitchen. Then add upgrades like dividers to increase the functionality of the furniture.
Another idea is increasing storage space in multiple areas. Add floating shelves and decorative baskets to store items. That way, you have more floor space without going over your home renovation budget.
6. Increase Natural Light Without Adding Windows
Natural light can boost your mood and make the space feel larger, but adding new windows or skylights can be expensive. Instead, consider installing a light tube. This affordable option can brighten your living room and save you about $1,000 compared to installing new casements.
Here are a few more ways to add more natural light:
- Paint with light hues.
- Add mirrors.
- Decorate with reflective surfaces.
- Wash your windows.
- Use lighter window treatments.
7. Determine Long-Term Impacts on Your Home Remodeling Project Budget
Thinking long-term is essential to budget for a remodel. For example, pay a little extra for quality finishes that will last longer. A pre-primed and painted siding may cost more, but it’s worth it in the long run. It prevents you from paying for multiple paint jobs in the future.
The paint job will also look excellent longer. Using factory finishes can lead to more issues. Companies apply these finishes under controlled conditions, so they often can’t withstand the harsh sun.
8. Sell Unwanted Items
Before the remodeling begins, think about items you want to save. You can reuse materials and fixtures such as cabinets and lights. If you want to change everything, you can sell functional pieces to places like Habitat for Humanity. Another option is selling parts on retail sites like eBay or Facebook Marketplace.
This increases the money you have for your home remodeling project budget. Plus, you may be able to collect a charitable tax credit. It also is good for the environment by saving space in landfills.
How to Lower Your Home Remodeling Project Budget
Renovating your home is a great way to improve its value and function. However, there are many factors to consider — including expenses. Review these tips to reduce your home remodeling project budget.