After you have worked through the essentials of your renovation project, your builder or architect will give you an estimate of how much it’s going to cost to complete the job. Called the rough order of magnitude cost comparison, it’s basically the first pass at a home remodeling budget. More than likely, the rough order will require some revisions to fit within your budget, which these tips will help you accomplish.
Identify the Essentials
It’s a natural tendency to include everything you could possibly want in a home renovation. Once the numbers are in, it’s time to prioritize what’s essential versus discretionary. This isn’t a do-it-yourself project. The expertise your building team brings to the table is indispensable. They’ll know what you must include to make your home more functional and livable, as well as getting the project approved by your local building authorities.
Prioritize the Rest
Decide how you want to go ahead with your project with the home remodeling budget in mind. Ask yourself if:
- You want to install just the basics. Do you want to make changes to the infrastructure first, like upgrading the plumbing and wiring? Failing water pipes and drain lines are normally priorities because, if not tended to, they can cause extensive damage. Unsafe wiring is another issue that needs immediate remediation.
- You want to perfect the project room-by-room. Instead of phasing the project by phases, would you rather start and finish the upgrades to your home on a room-by-room basis? Should you opt for this approach, choose materials for the finishing that are either always available or that you can stockpile. Flooring, for example, tends to go out of stock quickly .If you want the same flooring throughout your home, you might have to buy enough for the entire job and store it.
Cut Back on Specification Levels
Review the home remodeling budget to see where you can make tradeoffs in specifications. You may not need to install high-end light fixtures throughout your home at once, or you can cut back on appliance features. You may want to save money on interior doors and trim and upgrade later.
This is an area where personal desires often get in the way of rational decision making. Ultimately, your home is an investment, and when the budget is tight, balance your decision based on which specification levels will give you the most return on the investment. Browse homes for sale online in your neighborhood. Look at their feature levels before deciding on yours. You may not realize a future financial return for the upgrade if you exceed the levels that are normal for your community.
Pull Back on Expensive Trends
It’s also a good idea to distinguish between what’s trendy and what’s here to stay. A conservative play would be to avoid expensive, trendy upgrades and focus on the traditional, tried and true home upgrades. Not everyone wants, likes, or values the latest trends, and you could be putting money into something that won’t have an eventual payoff.
Bottom Line
Managing the home remodeling budget is part of improving your home. While it’s not as exciting as other aspects of the job, it could be rewarding down the road. Alair Homes is here to help throughout this important step. Contact us to discuss your project, and let’s get started on transforming your dreams into reality.