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Budget Planning for a Home Remodel: Costs & Mistakes to Avoid

home remodel budget

Are you overwhelmed by current home renovation costs? We know everything seems expensive, which is why we are offering our thoughts on creating a home remodel budget. We’ll discuss how to define your goals and priorities to reduce the cost of renovating. And we will offer mistakes people make when planning for a home renovation. 

What You Need to Know About Home Renovation Costs

Home renovation projects can quickly get out of hand. Here are some thoughts about how to stay on budget for your renovation project.

Define your goals and priorities. 

Clearly define the goals and priorities of your remodeling project so that it doesn’t get out of hand. While you might not have the budget for a home overhaul, you can complete some projects. Prioritize your list of needed home renovations. Talk with a trusted contractor if you need help knowing what to do first.

For example, you may need to replace your roof before updating your living space. Perhaps your home value will improve more with new windows instead of new hardwood floors and light fixtures.

Life is about choices; unless you have an unlimited budget for a home remodel, you must prioritize the projects. 

Research product and labor costs.

Once you have a list of home improvement projects, bid out the jobs. Consider getting at least three bids from contractors with excellent reputations. When you ask, “How much does it cost?” make sure the cost per square foot includes materials, labor costs, and building permits. 

Costs can vary significantly depending on location, the scope of work, and the quality of materials you choose. You may have to pay more for energy-efficient products, but selecting them may be a good idea. After all, you can save money on your heating and cooling costs and tax incentives by investing in higher-quality, efficient products. 

Note: It’s a good idea to be prepared for unexpected expenses on your home remodeling budget. Pad your budget!

Set your home remodel budget and stick to it. 

Home renovation projects can be stressful. Don’t add to your anxiety by going over your home renovation budget. After you see the contractor’s estimate and price tag on quality products, you might realize that you’ll need to take things slowly. Go back to your list of priorities and complete projects you can afford.

home renovation costs

Common Budgeting Mistakes to Avoid

Before you embark on a home renovation project, read these common mistakes homeowners make during home projects.

Mistake #1: Underestimating the average cost to remodel. 

Be thorough in your cost estimates. Make sure you understand the contractor’s bid. Ask questions – if they can’t give you a detailed plan, you don’t have the right contractor.

Mistake #2: Focusing on projects with a poor return on investment. 

Research the rate of return on each home remodeling project. You might be surprised to learn that exterior remodeling always yields a higher return on investment, so update windows, doors, roofing, and siding before completing a luxury bathroom renovation.

Mistake #3: Being so focused on the home renovation cost that you do little to improve the value of your home.

Refrain from replacing your current older windows with new poor-quality windows. Home improvements should do just that – improve your home value. If you buy cheap products and complete the project yourself, you may lower the value of your home.

Mistake #4: Not vetting your home improvement company. 

Ask around in your community for recommendations for a general contractor. Read reviews and interview previous clients.

Do you need new siding, windows, doors, or roofing in Charlotte, Raleigh, Richmond, Norfolk, or Tampa? Contact Homefix Custom Remodeling today and ask for a bid. Ask about discounts and financing options!

Key Takeaways About Sticking to a Home Remodel Budget

  • Home renovation projects can be stressful, so understand the costs and stick to your budget.
  • Set aside more money for unexpected costs. 
  • Make sure the project is improving the value of your home.
  • Carefully select home improvement contractors in your area with a solid reputation.