How to Budget for a Home Renovation

Starting a home renovation can be a scary task, especially trying to understand where you should begin. The first step to a successful home renovation is creating a budget that works for you and that makes sense for your home. Depending on the project and its size your budget should fit accordingly, not too big but also not too small an amount. Once everything is budgeted and sorted out correctly, your home renovation becomes more of a reality rather than a dream. In this blog, we will be discussing how to budget for your home renovations and what courses of action might help you understand where to spend and save your money.

Kitchen Remodeling

Home Additions

Bathroom Remodeling

Custom Carpentry

Which Area Needs the Renovation

The first step to creating a budget is deciding on what areas of your home you want to renovate first. It’s always nice to make the master bedroom you’ve always dreamed of and redesign an entire kitchen. However, the best course of action should be to focus your renovation on the most outdated and warn down areas first. It’s always better to have your home all up to par before starting to upgrade areas that look and perform perfectly fine as is.

Understand the Cost of a Home Renovation

The cost of renovating a home has numerous factors such as square feet, appliances needed, labor, and materials. Depending on the area of your home you wish to renovate first the price of your renovation can drastically change. For example, the average price of a kitchen remodel is around $30,000 whilst the average renovation of a bathroom is only $13,000. Therefore, it’s best to understand that each room being renovated is different and your budget should reflect the room you are renovating.

Do You Intend to Have Custom Work Done

Renovations can be hard to budget on their own. If you want custom work done you should take that into account beforehand. Work such as custom carpentry can go a long way to finish a remodel. Making sure you account for the increase in pricing will help you in creating a more accurate budget for your renovation.

The Maximum Amount for Your Renovation Budget

Now that we know what to take into consideration when budgeting, what amount is too much for a renovation? We always want our homes to look beautiful but it’s not always worth the cost. The typical rule for renovating is you do not want the price of the renovation to exceed 15% of the value of your home. As an example, if your home is worth $400,000 then your renovation budget should not exceed $60,000. This is because after 15% the cost exceeds the added value of your home.

How Do You Plan to Fund Your Renovation

There are many types of payment methods you can use for a renovation such as cash, credit, and loans. No matter the payment method it’s important to know how much money you have available access to. Your budget will be completely based on your available funding. So make sure you decide your payment method early on in the budgeting process. A good idea is to take between 10-15% of your budget and put it aside in case an emergency appears during construction. Setting aside funds can speed up the process and cause less of a headache down the line.

Putting it Together and Starting Your Renovation

After learning everything prior in this blog it is up to you to do the necessary research. You now know what areas we deem most important when deciding on a renovation and how to start one. The next step is to decide on your renovation and research all the appropriate costs that go into that specific renovation. Research areas such as appliances needed, materials, and more. Decide which areas you’d like to spend more of the budget on and what areas you don’t mind spending less. Reach out to contractors and decide on what a fair price should look like for your renovation. Once a contractor is selected your budget will start to look even more accurate. Once all the costs are researched and organized you should have a well-established budget that will help guide you through your renovation.

Contact Precision Remodeling & Construction for Renovation Services in Marblehead & the North Shore of Massachusetts

After going over what it takes to properly budget a renovation it can all seem overwhelming. If you’d like to start a renovation but still feel a little lost contact Precision Remodeling & Construction today! We’ll help you create an accurate estimate for your renovation and will guide you through the process. Visit our website or give us a call at 781-631-7555.