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Budgeting For a Home Remodeling Project

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Budgeting For a Home Remodeling Project

Almost everyone struggles to stick to budgets. Thus, when it comes to renovating your house, you have to come up with a realistic budget. Undoubtedly, formulating a budget for a home remodeling project is not a walk in the park. But the greater challenge is usually sticking to the budget throughout the entire remodeling project. It is therefore important to employ a reputable home remodeling company like Phoenix Construction & Design. We help you turn all your dreams into reality by offering quality home renovation services. The best thing about us is that we work with any budget. Also, we make sure we stick to your budget during the entire remodeling process.

Budgeting For a Home Remodeling Project

Find out the cost of a home remodeling project

Before you come up with a budget for your project, it is important to approximate the costs for the remodeling project. This way, you’ll be able to formulate a realistic budget. On average, renovating a home costs $87,000. This cost is based on a home that measures about 3000 to 4000 square feet. Keep in mind that these costs vary depending on various factors. Generally, you’ll pay more when remodeling an older home. Once you find out the cost estimates, come up with a budget for your project.

What is a reasonable amount to spend on a home remodeling project?

Remember, spending too much on renovating is not wise. Financial experts usually advise spending about 10 to 15 percent of the value of your home for remodeling. So, if your home’s value is $200,000, you should spend about $20,000 during the remodeling process. Hiring a professional company is a good idea. They will help you know the most reasonable amount to use on a home remodeling project.

Look for a financing option before finalizing your budget

When budgeting for a home remodeling project, it is essential to identify the source of your finances. Suppose you have the total cash at hand, well and good. However, if you need financial assistance, look for a reliable lender within your area. Fortunately, a wide range of financing companies can help you with your project. A reliable home renovation company can always connect you to the best lenders within your area. The most common financing option for conducting renovations is a home equity loan. Once you determine how much your lender is willing to give you, you can finalize your budget.

How do you develop a budget for a home remodeling project?

Step one: Identify all aspects of the project

When coming up with a budget for your home remodeling project, the first thing is to come up with a list of everything involved in the project. Then, attach the related costs to everything listed in the project. As you do this, ensure you separate the needs and the wants. The needs are things you must incorporate into the project. On the flip side, the wants entail things that you don’t have to incorporate immediately. At this point, come up with the main purpose of conducting the project. This objective serves as your drive throughout the entire project.

Step two: Estimate the costs

Now that you have the objectives for your home remodeling project come up with a solid plan. This solid plan should outline all the expected costs. The plan will help your contractor to know your requirements. Consider using an excel sheet for this. You can also include cost estimates for all material and labor involved in the project. So, how do you estimate costs? There are various online sources like Home Guide that can help you determine the expected costs.

Step three: Compare quotes

Once you know the total expected cost for the home remodeling project, find a reliable company. It would be best to research the best contractors in your area. Then, compare their quotes. Doing this helps you find an affordable company that caters to your budget. However, ensure that the contractor can deliver quality services. A good percentage of contractors can work with different budgets. Check the credibility of the company through customer reviews and ratings. Nonetheless, be careful not to hire a cheap, unreliable contractor.

Budgeting For a Home Remodeling Project

How can you save during a home remodeling project?

Below are some of the tips to save during a home renovation.

  • Conduct the demolition by yourself. Remove any cabinets and flooring if necessary to reduce labor costs.
  • Buy your equipment and furniture by yourself. 
  • Paint the walls and surfaces by yourself.
  • Supervise the project on your own.

Need help budgeting for a home remodeling project? Hire Phoenix Construction & Design

It is clear to see that a home renovation project can take a toll on your budget. Therefore, it is essential to know the best way to budget for your project. First, estimate the costs involved, and then try to lower them as much as possible. Always hire a reputable construction company during a home remodeling project. If you live in Houston, Phoenix Construction & Design has got you covered.

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