How to Make and Stick to a Home Renovation Budget

The first step to making a realistic budget you can stick to is to know the exact amounts of money you are dealing with. Before signing up with the first building contractor who knocks on your door, do a little research into what to expect. How much will it cost to complete the home renovations you have in mind? Don’t forget additional costs for things such as possible planning permission costs, building regulations, which start at about £80 on up to much higher, insurance fees, or possibly a warranty to cover the work, usually between £1000-£5000 to obtain a 10-year warranty.

Once you have determined an approximate amount of how much you will be able to spend on a project, go one extra step to set aside a little bit extra funds. It’s always a good idea to have between 10 to 20 percent of our available funds on hand just in case unexpected expenses arise, and they will. Always expect the unexpected, and have a back up plan. Know that it is quite common for unexpected expenses to crop up when renovating a home, especially if it is an older home. When you set aside this extra cushion from the start, you will have the peace of mind that it is there to draw from should it become necessary so you don’t have to leave a half finished project undone.

The best way to stick to your budget is to know exactly what the money is going toward and how much you have in the first place. It’s important to prioritize all of your renovation projects. Start by making a list of everything you want done, room by room. Then, separate the list into which items are absolute necessities and which ones are more of a luxury or something you merely want. Ask yourself what do you want the renovation to do, what details are going to be required, what do you want to splurge on, which areas are deal breakers must haves, and where are you willing to compromise.

Always remember to account for taxes or shipping and delivery fees in your estimate for materials. Also, consider environmental aspects. If you are renovating a kitchen or bathroom where there may be appliances or sinks and such to dispose of, ask about disposal costs. Also, don’t forget about things like paint brushes, tape, drop cloths, tools, or even sand paper. Include everything on your list no matter how inexpensive or small it may seem. It all adds up.

Finally, think about how it will be to, for instance, live for a month without a working kitchen or bathroom. Take into account how much it will cost for you to live in a hotel or elsewhere if it becomes necessary to do so during the renovation. Also consider children or pets that may need to be relocated during the work on the project. Now is the time to make sure every detail is covered.

Know when and what you can save money on by doing it yourself and when it’s beyond your scope and time to call in an expert contractor. Sometimes you can save money by removing cabinets or pulling up tile, buying your own fixtures or finishes, or painting yourself.

Don’t just hire the first contractor who comes knocking at your door claiming they can do the work after you give them a large deposit. Seek out several contractors to request bids from first, and then look them all over to compare before deciding which one fits your budget and your other needs.

Ask for a bid for your project, and get a bid from at least three different companies for comparison. If one is noticeably lower than the others, don’t assume you are getting a bargain. Chances are they have not included everything in the estimate and there will be not-so-pleasant price shocking surprises after the work begins. Before hiring a contractor, check their references and be upfront about your budget for renovations. Use the competitor bids to negotiate a fair price that fits within our budget. Make sure the contractor is on the same page as you so you know they will understand and meet your needs completely.