You have finally taken the step to renovate your home, great! You’re probably excited and can’t wait to live in a house with functional features for you, including modern fixtures, fresh finishes, and personalized touches. However, the impact it will have on your bank account is probably not as thrilling. And that is typical. Because let’s face it, remodeling is expensive. If you want to renovate a single room or your entire home, you’ll need to make a huge financial commitment to make it a success. However. with the right planning and preparation, you can make the most out of your money.
This article covers how to create a reasonable renovation budget as well as tips to help you save during your renovation. These are essential to ensure that you can finish your renovation without going bankrupt.
How much Should I Spend on Renovation?
To get a rough sense of what your remodeling budget should be, take into account the overall value of your home. You shouldn’t spend more than 10 to 15 percent of the value of your house on a single room. Spending more will result in remodeling that will not increase the value of your home proportionally.
For example, if the value of your home currently stands at Ksh 100,000 then the renovations of your bathroom or kitchen should not go beyond Ksh 15,000. The cost of remodeling may be higher if the value of your home is higher.
How to Create a Renovation Budget
Renovations are costly and require effort, money, and time. You may consider doing the renovations yourself if you have the expertise. DIY is simple ad can save you a lot of money. However, it can be a very expensive mistake and a waste of time if you are not an expert. You must organize everything to save time and money, from the materials you require to the money you’ll spend on the renovation.
It might be difficult to develop a workable renovation budget because it requires extensive preparation. However, it is important to prepare and stick to your renovation budget as much as possible. Even though you may experience some hidden costs in your renovation, try to stick within the budget as much as possible.
Steps to Creating a Renovation Budget
- Prioritize Into Needs and Wants
Knowing exactly what you want before you start a remodel is the simplest approach to staying within your budget. Make a list of everything you want the renovation to contain, then classify them into needs and wants.
Also, consider the best order in which to do your renovations. For example, if you know that you eventually need to upgrade the wall tiles of your bathroom, it does not make to start with the cabinets as this will mean dismantling them in the long run. Doing things in the right order saves time and money.
- Outline Cost Estimate
Make a thorough plan for your home improvement that includes anticipated costs after deciding on your goals. This will assist you in making a budget as well as informing the contractors of what you desire.
Have a blank spreadsheet that shows how the project has been broken down and the estimated costs for the labor and materials.
- Request Quotes From Different Contractors
You are now aware of your needs, wants, and price range for each item. It’s time to look for a contractor who can finish your project on time and on budget.
Find nearby companies or independent contractors who have good reviews and request quotations from them for your project. For an accurate cost comparison, request quotes from at least three businesses/individuals.
Tips for Saving on Cost
- DIY(Do It Yourself): Consider doing some of the work yourself. As long as it does not require any specialized expertise, doing it yourself can really cut labor costs and save you money. For example, you may start removing cabinets or tiles wth simple tools at home or a simple DIY paint.
- Order Your Own Fixtures: Your contractor will likely charge you and add a markup if they shop for you. Make sure the contractor understands your plans so they know you’re taking on that burden yourself.
- Manage Your Own Project: Rather than delegating the project management job to others, you can spend some time at the project and supervise it yourself. This is great for you because you can tell the contractors directly what you’d like them to do.
- Shop Refurbished Items: When possible, choose used or refurbished things rather than buying everything brand-new. Your spending on appliances and finishes can be significantly reduced as a result.
You should be able to complete your project within your remodeling budget if you take these measures to prepare for and lower the cost of each component of your project.