When budgeting for a home renovation, there are a handful of important things to consider. It’s more than simply knowing how much you want to spend. You need to know the value of your home and which renovations will increase that value. Then, you have to account for extra expenses and the labour it requires to complete the renovations. You may be dreaming of renovating your bathroom, kitchen, or the entire home. Can your dream become a reality?
Step One: What Needs Renovating?
Of course, everyone would love to have a completely remodelled home. Unfortunately, that’s often not within the budget. Plus, if you plan on moving eventually, you need to be strategic about renovations. You want to increase your house’s value, but not price it out of the area’s market. Expect to compromise on some renovation wish list items and stick to your guns for others.
Decide which renovations you must have. Then, decide which ones you’re willing to budge on. For most homes, improving the kitchen and bathrooms are a sure-fire way to boost the house’s value. Adding a laundry room to the second floor, additional washrooms, and updating the exterior are all worthwhile investments.
Step Two: Compile a List of Estimates
Before you can start saving for a renovation, you need to have an idea of what it’ll cost. That’s where a handy-dandy Excel spreadsheet comes in. Create a chart with the renovations you want down the side and the estimates from various companies along the top.
Keep in mind that you aren’t just paying for materials. Labour usually takes up 20-35 per cent of the budget, plus taxes and unexpected costs that come up. When you receive an estimate, add 10 per cent to that number to account for unexpected costs.
If you’re going to buy your fixtures or appliances, add columns for those items as well. Include taxes, shipping and delivery, and installation costs for those items.
Step Three: Choose the Right Renovation Company
The best way to save money is to choose a reputable contractor that doesn’t surprise you with hidden costs. They need to be transparent and detailed in their estimates. And, they should have plenty of great reviews. If the work isn’t done properly, you’ll end up paying more for someone else to come fix it. Picking the right company from the start can save you thousands of dollars.
Step Four: Start Saving
From your list of estimates and list of must-have renovations, finalize what you need to save. Are there some aspects, like demolition, you can do yourself? Can you source materials from a family friend who will give you a discount? Are you able to paint the finished walls yourself instead of hiring painters? Look for any possible way to save money on your renovations.
Kantium Development & Construction has been providing high-quality home renovations to the Greater Toronto Area for over 25 years. To request a quote on your upcoming renovations, contact us today.