How to Renovate – Without Breaking The Bank
As working from home has become much more prevalent among organizations and people are choosing to stay in during their free time, we have started spending a large chunk of our lives at home. This has resulted in an increased interest in finally getting those projects done around the house that may have been pushed off for many years.
Some common questions from clients that have been recently asked are how much should I budget for a renovation, does it make sense to do a project now when prices have increased, and what’s the best way to go about a substantial project/renovation. Within the first few months of our marriage, my wife and I have taken on an extensive renovation of our basement, so I can resonate with these questions and would like to share with you some tips I have learned throughout the project.
1. Have a thorough budget and make sure to account for unexpected expenses
When my wife and I began to plan for our basement renovation, we first looked at the average cost to renovate a space similar to ours and started saving accordingly. We then created multiple smaller budgets within the overarching budget. This included separate budgets for new drywall, flooring and carpet, countertop space, additional cabinets, light features, furniture, electronic accessories, paint, and labor. This helped break things down so we could better project what the renovation would cost.
The detailed budget works until something comes up not according to the original plan – like finding out your basement door frame is rotted through, and the contractor highly recommends it be replaced before he does anything. As we saved for the project, we made sure to include extra funds for these unexpected expenses. You never know what will come up with older houses, space restrictions, safety hazards, etc. It is crucial to prepare for the unexpected, because more likely than not, something “extra” that was not accounted for will come up, putting a big dent in plans.
2. Save money through materials and don’t settle for cheap labor
With inflation in full effect, materials to build have risen dramatically. However, there are always options when it comes to materials, and at times it may make more sense to go with less expensive materials that still give you a good look and perform well. My wife and I made sure to come up with a list of everything we both wanted and needed. We quickly found that top-of-the-line items would take us well over the budget, and there were many cheaper alternatives that would not sacrifice quality and make our project affordable during this time of increased prices.
I would also recommend setting aside time to research local contractors that have consistently shown quality work. It is okay to reach out to 10 different contractors and set up times to meet with three to five of them to go over the project you have in mind. In fact, I would encourage you to do just that. Their estimates will help you determine what the average cost is in your local area, and a conversation with them will end up being an educational experience.
I have found that having a good contractor makes all the difference. If you spend more money on quality labor, you will avoid having to potentially deal with sloppy or unfinished work. You are investing valuable time and money into your project, so you should want it done both well and correctly the first time. I would also encourage you to get involved in the project where you can, whether it is completing demo work or painting, as this will narrow the scope of work for the contractor and lessen the overall price.
3. Prioritize areas that add value to your house and are “musts” for preservation
As a rule of thumb, don’t go and spend half the price of your home to renovate a room or two, as this will probably not bring the same amount of value to your house. Also, be careful not to over-improve your home for the neighborhood, especially if you want to sell your home in the near future.
Instead, prioritize the areas of your home that are causing you stress and trouble, or the areas that will add evident value to your home, such as a finished basement, a third bedroom, or an additional full bathroom. My wife and I viewed our basement door (mentioned above) as one of those “musts” in order to preserve all the other work being done in the basement. If we would decide to wait, there would be the possibility of water seeping through the rotted area, ruining our new flooring or causing mold to grow. Ideally, you eliminate these risks by honing in on the problematic and opportunistic areas when looking to renovate and add value to your house.
Bonus: Enjoy the journey of the renovation
Taking on a home renovation project can be both an exciting and intimidating experience. By thoroughly budgeting, saving on materials, investing in quality labor, and prioritizing value-added renovations, you can set yourself up for great success.
It has been really wonderful to watch my wife and I grow closer as we build our home together. We have both learned so much along the way, and it is immensely rewarding to see the fruit of both the hours of planning and hard work. By stewarding your finances and investing in your home, you are making the four walls you live in a better place for your entire family.
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