Determining your home remodel budget is a critical first step before the work begins. Here’s how to determine how much to should spend.
Your home renovation budget is the key to unlocking your remodel potential. That certainly doesn’t mean you need an enormous budget to do an amazing remodel. A little can go a long way, but only with the right plan.
Here we’ll guide you through the four main facets on how to plan a renovation budget.
Evaluate Your Finances
The first step is looking at your monthly income and savings to determine how much you have to spend on a remodel. Do this no matter if it’s a bathroom remodel, kitchen renovation or entire home remodel. Do some research on the average cost of your remodeling project so you can compare that to your disposable income. If your monthly income or savings account is ample enough to pay for the remodel, that’s ideal. Alternatively, you can look into financing options, such as a home equity line of credit (HELOC).
Get Quotes From General Contractors
We understand hiring the right general contractor can feel like a daunting task. After all, there are lots of us out there. And, you need to make sure the job is done correctly and cost effectively. As you research and evaluate individual GCs online, be sure they’re licensed and insured. Read their online reviews across Google, Facebook, Houzz, Better Business Bureau, etc. These user reviews will give you a sense of what their past customers have to say about their own experience.
After you’ve narrowed down your list to your top reputable home remodeling contractors, then reach out to schedule a time to get a quote. We always recommend getting three quotes from different GCs so you can compare everything from cost to capabilities to personalities.
Shop Around for Finishes
When we think about a renovation, we think about the beautiful finished product, right? So, for the most part, we’re thinking about the "finishes." Finishes are everything from cabinetry to hardwood floors to backsplash tile to overhead lighting. When you’re crafting your budget, it’s wise to shop around for the finishes that create your desired design.
Decide if you’re looking for budget-friendly options or if you’re in the market for designer features. From there, prioritize which fixtures are the most important to you. This way, you know where you may spend more and, thus, where you’ll need to save money on the remodel.
Create a Detailed Budget
After you have all this in place, create a thorough budget that maps out all your home renovation costs. This includes everything from labor costs and finishes to permits and extra padding for unexpected expenses. Then, as the remodel kicks off and progresses, you and your GC can adhere to that budget to minimize surprises.
New to home improvement projects? To save time and money, be sure to also check out our beginner’s guide to managing a remodel and how to prepare for a home renovation.
If you’re in the Los Angeles area and want to discuss your remodel, contact us today for a free quote.