Create a Home Renovation Budget in 3 Steps
To take control of your home renovation budget, you need a plan. We’ll show you how to create a smart budget and make smart decisions that add real value to your home.
To get your project moving, use these smart steps to create your home renovation budget:
1. Prioritize Projects
If a room in your home is need of more work, you’ll want to budget for that project first. Or if you have a strong desire to renovate a particular area, go for that one first. But if things are otherwise even, consider starting with popular home renovations (kitchen, bathroom) that add the most value to your home and bring the most satisfaction to homeowners.
Home value: If your primary purpose is to increase home value, prioritize projects that will earn you more money at your home sale than you spent on them. For example, projects like new roofing and new wood flooring earned renovators 6–7% more at resale than they spent on the projects. New roofing also ranked the highest of 20 renovation projects for helping to close a sale.
Enjoyment: If you care more about enjoying the results of your renovation project, whether or not it earns back the full dollar amount you spend on it when you sell your home, you could choose projects like a kitchen or closet renovation, which both scored the highest of 20 projects for homeowners who were happy with their renovations.
2. Outline Cost Estimates
Now that you’ve decided which renovation to do first, break down the cost of everything that goes into that project—including all the labor and materials needed. This will take some research.
Keep in mind, you won’t be able to get an exact cost until you talk with actual contractors. But digging around online will give you ballpark figures so you can be realistic about what you can get done with your budget.
3. Collect Contractor Bids
Now you’re ready to talk to a contractor. Ask around or search online for at least three legit contractors in your area. Request project bids and timelines from each one and compare pricing.
Be careful not to only be tempted to go with the lowest bid, but rather the bid that instills the most confidence in you.
Sell Your Home With an Agent Who Knows What to Renovate
If you’re renovating with the intent to sell your home in the next 12 months, get advice from a top-notch real estate agent in your area. An expert agent will help you decide which renovations are worth top dollar and they’ll negotiate the best deal for you when it’s time to put your home on the market.
Interested in renovating your home? Let us help
While a contractor can help you plan for tearing things down and moving walls, but there are so many details to consider when undergoing a major renovation. Avakian Interiors can help you formulate a design plan to make sure all choices, both large and small, go together for a final look that not only reflects the style you like but makes functional sense as well.