Many homeowners end up spending more on their home renovation than they had planned to. But this doesn’t mean that you’re destined to meet the same fate. It’s true that some home renovations end up exceeding their budgets because of major, unexpected problems. In many cases, however, the costs add up because homeowners don’t plan well in advance or didn’t create a realistic home renovation budget in the first place.
How can you increase the chances that your home renovation will be completed on budget? Use these 6 simple steps to create a realistic home renovation budget:
Step 1: Identify what you want to renovate
To first step to creating a home renovation budget is to identify what you want to renovate. Do you simply want to redo the floor in your living room, or do you want to completely remodel your kitchen and bathrooms? Keep in mind that kitchens and bathrooms tend to be most expensive to renovate because they contain plumbing, cabinets, and faucets. That said, because additions cost more, adding a bedroom to your main floor is typically more expensive than swapping basic fixtures in a bathroom.
Step 2: Assess the condition of your home
When creating a home renovation budget, it’s important to be realistic about what can stay as is and what needs to change. For example, you may want to stick with your current kitchen floor to reduce the cost of your kitchen renovation. But if your floor is worn down and will need to be replaced the following year anyway, it probably makes sense to swap it out now.
Step 3: Create your wish list
In this step, identify all the changes and features that would make your home the perfect space for your family. At this point, don’t worry about cost. Instead, give yourself the freedom to dream big. Although some of your dreams may fall outside of your home renovation budget, you may find that some dream features are surprisingly affordable.
Step 4: Prioritize changes and features
You’ve had some time to dream, but now it’s time to return to reality. In this step of creating a home renovation budget, you want to pare down your wish list by prioritizing the most important changes and features.
If your primary goal is to boost your home’s resale value, you’ll want to focus on making strategic changes that will increase the value of your home without pricing you out of your neighbourhood. In comparison, if your goal is to enhance your space for your family, identify the changes that would have the greatest impact on your family’s quality of life.
Step 5: Get quotes
Now that you have a rough home renovation budget, it’s time to get a few quotes. Reach out to a few renovation contractors and find out what they would charge to take on your renovation project. Be sure to get quotes only from reputable contractors who have WSIB coverage, insurance, and outstanding reviews.
Step 6: Revise your home renovation budget
Now that you have estimates of what your home renovation would cost, modify it based on your needs. If the estimates exceed what you’re able to spend, find ways to scale back on your project. And don’t forget to include a buffer for unexpected expenses. They have a sneaky habit of popping up when you least expect it, so it’s useful to be prepared for them.
Take the time to create a realistic home renovation budget
Unless you’re doing a small project, the cost of a home renovation can add up. That’s why it’s important to create a realistic home renovation budget before your project begins. Having a realistic budget in place helps you identify the features and changes that make the most sense to include in your project. It also helps you ensure that you’ll be able to cover unexpected expenses.
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