The rising house prices, the pandemic-induced lifestyle changes, and today’s “race for space” have left millions of households with one choice: renovating their homes. But while a renovation project seems to make sense for the 56% of Americans who upgraded their homes in 2021, the expenses associated with a remodel aren’t to be taken lightly!
Whether you are a seasoned renovator or you are just about to embark on your first project, budget for home renovation and track cost of the same can help you stay in control of your finances and enjoy your new home without regrets.
Pinpoint Your Priorities (and DIY-Friendly Tasks)
Choosing between buying a new home or renovating your current one isn’t always easy – but your choice of opting for a renovation shouldn’t come solely from your desire to save money!
Renovation projects should aim to upgrade your home’s energy efficiency and comfort, introduce smart appliances and better-designed spaces, and create a living space better tailored to your lifestyle needs.
That’s why the first step of any renovation project is to determine your priorities and goals, estimate realistic costs, and set your expectations.
If your budget doesn’t stretch to a full-house renovation, speak to your contractor to understand the cost involved and check if some of the tasks can be completed without the help of a professional renovator.
Determine a Renovation Budget Before Getting Started
While some costs might be out of your control, it is important to set an overall renovation budget for your project, which will work as a guideline through each phase. If you are unsure what to expect from upcoming home renovation costs, looking at the national and regional average for each project can help.
For example, according to recent estimates, renovating a home can cost between $17,905 and $78,013, or $10-$60 per square foot. But while the average cost of a renovation in the US is $47,813, some projects can be as expensive as $150 per square foot!
Pro Tip: Once you have an idea of what you should be paying for your project, get in touch with different contractors, ask for bids, and compare quotes to find the budget friendly renovations and fulfill your needs.
Use a Renovation Budgeting App
An estimated 69% of renovation and construction projects go over budget, and homeowners are often overwhelmed by unexpected expenses and unforeseen costs. But this doesn’t mean that you should just surrender to the fact that you’ll have to find extra funds to complete your project! Get a free or cost-effective renovation budget planner application and ease your work.
Interactive tools such as the SoFi money management app provide households and contractors with all the features needed to manage budget for home renovation and track expenses during the ongoing work.
These include:
- Customization
- Project shareability
- Payment tracking
- Updates monitoring
- Contractors’ details storage
Just give it a try and start tracking activities, direct and indirect activities. Merge tracking system with below mentioned hacks to achieve the desired economical home renovation project.
Create a Detailed Breakdown of Expenses – And Beware of Hidden Costs!
Creating an efficient budget for your upcoming project is all but easy – especially if you are unsure about the expenses you’ll face. Depending on the type of project you are looking to complete, overall or gross estimates might not be the best way to track cost and your money.
Instead, consider crafting a house renovation budget that is subdivided by rooms or spaces that need renovation, materials, and labor costs. Some hidden costs to be aware of (and take into account) include obtaining permits, disposal of materials and debris, and land or property surveys to determine ownership lines.
Don’t forget that while your house is being renovated, you’ll deal with disruptions in your daily life, which might require you to afford extra costs such as dining out, pet or childcare or even hotel rooms.
Record Real Time Expenses for Money Management
If you are working with a single company or a renovation contractor, they might be delivering a comprehensive quote with the project’s breakdown, timelines, milestones, and recurring payment deadlines.
However, if you are working with more than one professional, you’ll be responsible for keeping up with payments, tracking transactions, and making sure that you’ll have enough funds to pay the next bill!
Recording transactions in real-time, reviewing milestones and making sure that your team is sticking to the expected timelines can help you be more in control of your finances throughout your project.
Conclusion
In all, here are basic steps or let’s say it a flow to check before starting up any remodeling project and save your bank by framing pocket friendly budget for home renovation. Give a kick start, brainstorm and make it possible.
Well, the perks of low cost renovation are wide scope to consider. Along with the cost, there are other essential factors that should be marked carefully. Have a click and aware yourself.