How to plan a realistic budget for your home renovation

Any home renovation project requires a realistic budget that can not only cover each aspect of the project but also provide a contingency plan should anything go wrong. As such, it is always wise to consider each and everything that could impact the build or cause disruption, so it can be prepared for in advance without causing a delay.

In this article, we will help you plan a realistic home renovation budget that can provide peace of mind and ensure any potential problems can be minimized.  

How to budget for a home renovation

Unfortunately, there is no accurate home renovation budget calculator as the costs can vary drastically, based on the size of the project, the quality of the materials, the cost of hiring a contractor, the permits required, etc.

This is why it is important to thoroughly plan the home renovation project and conduct research to consider each aspect of the renovation and what costs might be applicable to you. Below we will provide a step-by-step list of the various stages and requirements of a normal home remodeling project, so you are able to plan accordingly.

• Choose an ideal timeline and a deadline that you would like to have the project completed by.

• Determine how much work needs to be done – will any demolition work need to be completed? Will everything need to be replaced? Can one contractor complete all the work, or will multiple be required? There are many things to consider so take time to assess each stage of the project and the extent of the work.

• Research furniture, materials, and fittings before the project begin so you can add them to the overall budget.

• Look into what building permits may be required and factor this into your budget.

• How much of the work can you do yourself? If you are experienced when it comes to DIY then maybe there are many tasks that you complete without requiring a contractor, bringing costs down. 

• Can any parts of the existing room be salvaged, upcycled, or re-used? 

• Get different quotes for each part of the project, from materials to contractors, prices can really vary so be sure to make as many price comparisons as possible. 

• Be organized and create a spreadsheet to work out the costings of the project so you can easily keep track of expenditure.

• Create some flexibility and consider some affordable plan B scenarios to avoid any costly scenarios that could eat up your budget and cause significant delays.

12 helpful tips when planning a home renovation budgeting

Budgeting is of course only one part of the equation and if you are to minimize costs as much as possible then you need to ensure that the project is completed without any mishaps. Therefore, it is important to plan the renovation to the most minute detail and our list of helpful tips can assist you in doing just that. 

1. Visualize an end goal and effectively portray this to your designer who can help create plans to turn it into a reality. 
2. Plan your budget around these initial plans and follow the advice in the previous section to make sure you have considered everything there is to consider.
3. When setting your timeframe, give yourself room to maneuver, taking into account weekends and national holidays when contractors are unlikely to be available. 
4. Research, research, research.
5. Create lists and spreadsheets so you can organize the project effectively and share this documentation with all parties so you are on the same wavelength.
6. Determine what permits you need and obtain them well in advance of the project start date.
7. Know the structural limits of your home and consult an expert in the planning stages to determine what is possible and what is not.
8. Always ask your contractor for references and testimonials, or perhaps even a portfolio of previous work they have completed.
9. Completely declutter the parts of the house that are being renovated to make it easier for the contractors and to prevent any damage. 
10. Consider the disruption the project may cause and how you can adjust your lifestyle and routine to make life easier.
11. Make sure kids and pets are out of the way to prevent any accidents.
12. Expect possible issues such as water shut-offs or electrical outages and make preparations in advance.

Planning a home renovation project on a limited budget

There are numerous ways to try and keep the costs down on a home renovation project, some of them simple, some of them less so, however, every little helps when trying to achieve great results on a limited budget.

Consider; asking friends and family to pitch in with the work; re-use existing materials and fittings; recycle old furniture; purchase pre-built fittings (such as kitchen worktops); opt for secondhand materials or maybe even build some fittings yourself. 

Browse more home renovation ideas here. 

Budget effectively with professional assistance

Many people consider a Do-It-Yourself project to reduce costs but even though it seems a cheaper alternative to hiring contractors, this is not always the case. A home renovation project undertaken by a person who lacks the necessary experience can result in errors that cost a lot of money to rectify. 

Time is also money, so consider the days that may need to be booked off work to make sure the project is completed on time. You may also need to hire babysitters.

Not only this, but a contractor has likely built up a strong network of associates that allows them to purchase materials cheaply, or bring in additional tradesmen at a cheaper rate than you would be able to negotiate yourself.  

This is why in many cases, hiring a contractor can result in a similar cost as doing the work yourself, and the end result is likely to be of a much higher quality when completed by an experienced professional. 

In summary, if you are a busy, working professional and you lack real DIY experience then it is highly recommended to seek the services of a proven home renovation contractor. 

Read more about the secrets of a great contractor here.