If you’re embarking on a home improvement or renovation plan, you probably know that it’s critical to create a budget first. This way, you’ll lower the risk of overspending and get an idea of how much money you need to pull together.
It’s not an easy prospect, however. Building a budget for a home renovation or improvement project can be overwhelming, particularly if you’ve never done it before. It can be hard to determine what costs should be included in your budget and what contingencies you should plan for. You also may be wondering how much of a “cushion” you should include in the budget. In this blog post, we will provide insights into budgeting for home improvement projects and getting the most value from your investment.
Begin with Research
At the start, it’s helpful to do as much research as possible. This way, you can determine what you want, what you can afford, and if there is a place where the two meet. Look into the materials you want and their costs and availabilities, research the average time it takes to do the job, and look for reputable, reliable contractors with good organic reviews. Check in advance to see if there is any permitting that needs to be done for the project, as a lack of planning for permitting can lead to extra costs and project delays. You may also want to ask for recommendations from friends and family who have carried out similar renovations in order to learn from their mistakes.
Determine Your Timeline
The faster you want (or need) the project done, the more it’s going to cost. Differentiate between wants and needs and set a realistic timeline that will allow you to get the project done in a reasonable time at reasonable costs. If you can, plan the project for the “off-season” when contractors are less busy, and you’ll probably see significant savings since seasonal demand drives up both the cost of labor and the cost of materials.
Understand Materials Costs Versus Labor Costs
Experts estimate that with any home renovation project, about two-thirds of the costs are for materials, and one-third of the costs are used for labor. Many people embarking on home renovations fail to sufficiently factor labor into the budget equation. As mentioned above, the time of year will significantly affect the costs of labor. Additionally, with continued supply chain problems plaguing the global economy, make sure you’re not choosing materials that are difficult to find.
Get Multiple Estimates
Estimates can vary wildly depending on numerous factors: the reputation of the companies, the materials they use, their labor availability, their size, the hours they work and even the town they’re located in. For this reason, it’s worth getting multiple estimates so you can get the best deal possible and not break your budget. Check ratings and reviews carefully for each company you’re considering.
Factor in a Cushion
You don’t want to be stuck if the cost of the renovation is more than expected, so it’s wise to build a cushion into the budget to absorb cost overruns. Experts recommend including an extra five to 10 percent of the overall renovation budget as a good amount of wiggle room.
Determine Your ROI Needs
If you’re engaging in the project merely to improve your own enjoyment of your home, you may be able to choose less expensive materials and options. If you’re starting a project to improve your home’s resale price, then it might be wise to splurge on the best materials you can afford.
Choose a Reputable Company
To help you stay within your budget, choose a home improvement company with a solid and storied reputation.
Since 1949, Aladdin, Inc. has been Connecticut’s leader in vinyl replacement windows, retractable patio covers, exterior railing, canopies and awnings, entry and patio doors, storm doors and windows, vinyl siding, gutters, gutter guards and commercial awnings. We provide services for the entire state of Connecticut and take great pride in our work and in the knowledge that we’ve helped transform countless houses into the homes of their owners’ dreams. Call us at 203-776-9996 or visit our web site.