When thinking about a home renovation project or starting one, one of the first things on many homeowners’ minds is whether they will be able to stay within budget.
Can you have the house of your dreams without breaking the bank? That is the burning question.
You will be glad to hear that it is more than possible but only if you dedicate enough time and energy to plan your budget carefully. For most homeowners, this can prove to be quite a hassle and a complicated process. There are, after all, a great many things to consider and factor into the budget and the planning process.
But you don’t have to worry because we’re bringing you some of the best tactics to employ during the budgeting process that will help you realize your home renovation project and stay within budget.
There is a saying that goes “Failing to plan is planning to fail.” Therefore, read on and start planning.
1. Make a Plan and Estimate the Costs
Every home renovation project should begin with a careful outlining of the entire project, writing down everything it will and can entail, and allocating the necessary budget for each of the aspects and items on your list.
This will be your first draft of the budget, an estimate of the expected cost. As you go further down the line with the planning process, you will be able to determine the costs more accurately.
In this first step, it can be helpful to talk to a home renovation Dublin contractor that you know and trust. If you don’t know one or if you still haven’t chosen one, you can talk to your friends and neighbours for recommendations.
Ask the contractor or do some research on your own and try to determine the approximate costs of the building materials you will need, of the labour, etc.
In helping to plan this estimated budget, it will help you greatly to first outline your entire project and create a detailed plan of what you want and need done. Do you want a full kitchen remodel, a window and door replacement, a paint job? Research what you project entails and determine your needs and wishes.
This will also be important later on for the contractor that will be doing the work. With a detailed plan and outlined specifics, they will be able to give you a more accurate quotation for the project.
2. Determine How Much You Can Spend
Now that you have made a plan and a rough budget estimate, it is time to see exactly how much you can actually spend or how much you are willing to spend.
You need to go over your home budget and see how you can factor in the home renovation project. If you have been saving up for this, then you will probably be able to conduct it without a lot of issues down the road and without many compromises.
If you haven’t been saving up, then you may be thinking about taking out a loan for the project or setting aside a certain percentage of your monthly income for the renovation.
If this is the case, then you should be very realistic and informed on how much you can spend, you will probably need to do some compromises along the way, and introduce some budgetary restrictions. This also means that you will have to prioritize and decide what is necessary and what is more of a luxury.
3. Set Your Priorities
Setting your priorities is not only important if your budget is restricted and if you have to be careful with money. It is always important because it is a way of setting some boundaries for the entire project. Even if you have a big budget and a lot of wiggle room, there is still the possibility of going over it and spending too much on a renovation project.
Therefore, making a list of top and low priorities is essential, as well as very helpful not only for the purpose of staying within budget but also so that you can plan the timeline more accurately and know how long it’s going to take.
You should decide which aspects and items within the renovation are an absolute must, where there can’t be any compromises and which are more negotiable, where you can cut some corners and compromise.
This way, you can first allocate the necessary amount of money for the top-priority aspects and then move onto the lower priorities and allocate the remaining budget to those.
This will help you greatly in the budgeting process as the money will be wisely allocated and you don’t risk spending it prematurely or going over it with the less important features.
4. Keep the Changes to a Minimum
Homeowners tend to come up with last-minute changes very frequently and that is exactly what can make or break their budget. Introducing changes midway, while the project is well underway, is inconvenient for your finances as well as for the contractors.
These changes are very often harder to incorporate and will undoubtedly blow your budget. The contractors will often charge you more for the labour than it was originally planned, as it actually involves more labour.
The chances are very high that your original plan really does have everything that you need and want and these changes will not make a lot of difference to the overall result. They may be a momentary surge of inspiration, something that you’ve seen on TV or in a magazine, but it doesn’t mean that it will fit into your specific renovation plans and designs.
It is best to stick to the initial plan an only change it when there is an actual need for it, if something comes up during the renovation that you weren’t aware of before.
This leads us to the final budgeting tactic and tip.
5. Plan for Contingencies
Unexpected changes and costs happen more often than you think. Once the home renovation starts and depending on the type and the scope of it, there can be some underlying issues that can surface, issues that you couldn’t have been aware of previously.
Homeowners sometimes don’t count them in or simply don’t think that they will happen. And once they do happen, they can cause you to go over your budget and wreck your plans.
That is why experts and contractors always recommend setting aside a contingency budget, a so-called “buffer” in case of some unexpected events and glitches along the way. This will give you some peace of mind and allow you to be covered in case of surprises.
Based on experience, home renovation contractors usually recommend adding 10-20% of the initial budget you’ve set or of the contractor’s estimate.
Applying these 5 tips and tactics in creating a budget for your home renovation project will help you greatly in staying within the budget and keeping your renovation project on track.
It is always important to be prepared and to plan out as much of the project as you can. For any additional help, professional tips and advice, as well as for the best home renovation services in Dublin, don’t hesitate to contact Classic Building Extensions.