The Keys to Budgeting Wisely for Your Home Renovation
It’s an exciting day.
The contractor is coming to talk about the renovations you’d like to make in your home.
These meetings can be tricky. Chances are, you’ve put a lot of thought into the renovations you’d like to make and have a budget number in mind too. Smart. You definitely want to know how much you’re going invest and what you’ll get for the money.
Here’s the rub…
Your budget’s too small
Okay, I can’t tell you for sure your budget’s too small, but I can tell you the majority of homeowners are off the mark. By a lot.
After our clients share their entire “wish list” and we return with estimates, it’s not uncommon the homeowner’s budget is about half of what the design build project will require.
We’d rather not give you a heart attack—or lose the opportunity to work with you on your home renovation. So in this article, I’ll aim to offer you some advice for budgeting, which I hope will help you establish realistic expectations regarding costs.
How much room do you really need?
After doing business for decades in the Washington DC metro area, we’ve come to the conclusion everyone wants more space.
You’re frustrated. Your home just doesn’t have enough space to comfortably accommodate all the people, pets, or possessions. It feels like you’re on top of each other. Maybe you’ve stashed stuff in storage, but wish you didn’t have to. Important things such as appliances get dispatched to the basement when they actually belong in the kitchen.
We get it. But the truth is you don’t always need more space; you need better space. Your space needs to be customized to your needs.
We’re talking about space planning here. A smart design-build calls for superior space planning. Creating more useful space—rather than adding-on to you home—can be the key to doing a successful home renovation in line with your budget.
As part of your home renovation planning, your design build team will help you understand some of the options for space planning. We’ll look at a variety of issues including:
- What you need to do in specific areas of your home
- How to make the space better suit its purpose
- Changes that would make for more convenient living
- Existing space that may be under-utilized
Ultimately, you may, or may not, need to do an addition. Reconfiguration of the interior of your home is often the smart and cost-effective way to go.
Should you reconsider your home renovation budget?
If you have a budget in mind you’ve probably made a promise to yourself to stick to it. You’ve done some research and believe you know what a home renovation should cost. So you won’t budge.
This might not be as prudent as you think. Two reality checks:
- You’re very likely to expand your budget
- A smart renovation will be worth more than the dollars invested
Of course, you need agree to a budget in advance, but in the interest of return on investment, you should allow us to help guide the planning. Talk to us in the early stages to have a frank discussion about the costs of the various steps of the renovation. We can answer all your questions and help understand not only the costs, but more importantly, how your money’s best invested to increase the value of your home.
Early budgeting discussions will also help you understand where your money should go—which components of the plan justify more dollars and which might be minimized. Some prioritization can go a long way.
You may have made up your mind you want to move walls, install new appliances, and do an addition, without considering this:
Addressing the biggest issue often minimizes the price and the need to gut your house.
It’s true. Though homeowners often dislike many things about their house, we’ve found that doing work on the highest priority items is key to your satisfaction in the end.
The goal is to plan and budget smart
There’s nothing simple about planning and budgeting for your home renovation. The ideal plan calls for effectively balancing your budget, needs, desires and the effect the rebuild will have on the value of your home.
Because of the complexity of the task, you’re wise to contact an expert such as the design build professionals at Gilday to help you understand your options and make smart decisions.
Be assured, as your partner in home renovation, we’re not going to tell you what to do. It’s your home. We want you to love it. We’re going to give you insights you can only get from a pro, so take advantage of our knowledge by contacting us.