Renovating a House on a Budget

Renovating a House on a Budget

The cost of renovating your home will be determined by the size of your home and the extent of remodeling to be done. To stick to your budget, have a detailed plan, up to the last requirement. Get a cost estimate for every kind of work to be done so that you do not overshoot your budget in the remodel.
1. Cost of Renovating Your Home

The estimated cost of remodeling a home that stands on about 1,000 square feet is almost $18,500. If your home has over 3,000 square feet, the cost doubles. Renovations on new houses cost less than in old houses. If an old house requires an upgrade on its wiring, plumbing and other features, the cost goes higher. To get an idea of how much you should spend on your home renovation, consider the total cost of your home. Do not spend more than 15% of the total value on renovations. If you are using cash, credit or taking out a loan to finance the renovations, set aside 20% of the amount for emergencies. Sometimes things do go wrong or something turns out to be more expensive than it was originally planned for — especially for rooms such as your kitchen.

2. Steps to Take When Making the Budget

Creating a list of everything in the house that needs to be corrected is the first step towards making a budget. After the list is complete, separate the ones that require more urgency from the ones that are not too important. You can now make a detailed plan with the estimated cost for the project. Shop for items that you will need to use and get their costs. Do not forget to include additional costs like taxes and shipping costs. Depending on the room being renovated or improved, consider how it will affect your daily routine — whether it be the kitchen or bathroom, bedrooms or living room. You can also look into room additions, but make sure to add in this cost into your budget.

3. Ask for Bids From Different Companies

Before you settle for a contractor, request for bids from different companies. This will give you a better outlook on the amount you are to pay. When you have settled for a contractor, be clear about exactly what you want and your budget. Discuss any possible issues that are likely to turn up and how to go about them without affecting your budget. Do not be quick to hire a contractor just because they bid lower than their counterparts- do an interview and check out their references.

Bottom Line
If you wish to save on costs when renovating a house on a budget, there are a few things you can consider doing. You can save up on labor costs by demolishing the house yourself. You can be your own project manager and just hire subcontractors instead of a general contractor. Shop for fixtures and finishes for your home yourself instead of letting the contactor do it for you. You can save up more money by buying used items instead of new. You can also choose to do your own painting to save on cash.