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So you’ve made a construction plan and have a design in mind but you’re struggling with the next step: creating a budget. Making a budget for something as large as a home renovation can be an overwhelming task but taking the time to do so will save you time and money in the end.
Follow these tips to help you create your own budget for your remodeling projects:
Before creating your budget, do some research on the average home renovation cost in your area. Depending on what part of your home you are planning to renovate, the cost will vary. Room size, cost of materials, and the type of work should all be taken into consideration along with the cost of obtaining any building permits needed to complete the project.
According to HomeAdvisor, the average cost of a kitchen renovation is around $25,959 and the average cost to redo your bathroom is $11,233. If you wanted to remodel your basement, it would be between $12,161 and $33,286. As mentioned, these numbers are the average prices and can fluctuate depending on how small or large your renovation is.
Another step to take before setting up a budget is to figure out how exactly you will be paying for the renovation. Whether you choose to pay in cash, take out a loan, or apply for credit, it is important to stay within the limit of your available funds.
After determining how you’ll pay and how much you are able to spend, you should set aside 10 to 20 percent of the available funds in case there are any unexpected expenses that pop up. Something may go wrong, the cost may be more than expected, or you could realize you want to do something extra during the renovation process.
The last thing you want to experience is extra stress about money while part of your home is under construction, so setting aside some extra funds can give you peace of mind during the process
Now that you have done everything you can to prepare for the creation of your budget, it’s time to actually draw one up!
If you have multiple projects you will want to figure out which project to tackle first. If there is an area of your home that is in dire need of renovation or is causing you trouble, obviously start with that one. Then you can work your way through projects with a feeling of organization and order.
Another thing to keep in mind is whether or not the order you are completing the renovation makes sense. If you are planning on updating the floor plan of your kitchen, starting with your cabinets is not the best idea. Completing renovations using common sense will save you time and money in the long run.
Next, you will want to break down all the projects by materials and labor costs. Building a spreadsheet will help you keep track of all costs estimates. Be sure to include things like fixtures, paint, and flooring but also taxes and shipping costs for those items as well.
Labor typically accounts for 20 to 40 percent of the budget. This includes contractors, architects, plumbers, designers, electricians, and more. Keep in mind that you usually will not have an exact price for labor costs until you find a contractor.
The best way to find the contractor that fits you and your project is to research multiple companies. Find contractors with good reviews and references and gather bids so you can effectively compare costs. Be clear about your budget and needs to eliminate any conflicts in expectations later on.
At Premier Construction, we offer full service general contracting and provide you with superior design and construction services. We have over 15 years of experience under our belt and work with you to make sure you know exactly what your finished project will look like even before we begin! If you are ready to start your home renovations, contact us today!