Starting a home renovation project can be exciting, but if you've never gone through the process before, it can be a little intimidating. Especially when it comes to building the budget. Here are some tips on how to create a home renovation budget.
GOOGLE AVERAGE COST
Do some research on the type of project you are doing. This includes materials, labor, permits, etc. Make sure you include some wiggle room in case something goes wrong. A good rule of thumb is to include about 10% to 15% more than your estimated budget.
MONEY SOURCE
Are you planning on saving the money for this project or using your home equity? Maybe a combo of the two? Look around to ensure you’re getting the best rate possible on any home equity loans you use to help save money.
WANTS AND NEEDS
Chances are, you won’t be able to do everything you would love to do to your home. When starting a renovation, decide what your needs are and decide what your wants are. Needs are something that are non-negotiable and are usually the driving force behind your renovation. Wants are something that you can live without, but would like if the budgets allows. For example, real hardwood floors vs. manufactured wood floors. Rank these by importance to you. This will help your decision making process during the renovation.
MULTIPLE CONTRACTORS
Reach out to multiple contractors and get a bid before making your final decision. Use your research from before as an estimate of how much you can expect to pay. If a contractor bids really low and it feels too good to be true, it probably is. Ask friends or family for references if you aren't sure where to start.
