When it comes to home renovations, it can be quite a costly undertaking -in fact, it can be one of the most expensive projects you will embark on. What is more, home renovation projects commonly run over budget.
Fortunately, however, there are ways to avoid overspending unnecessarily with careful planning. Whatever the project, it is important that you stay realistic when budgeting and follow some of the tips to help keep your spending down.
1. Assess The Potential Financial Gain (or loss) Of Your Project
Before you start any project, you need to consider the long-term impact of the renovation on your property value. For example, will the project add value to your home, or will the renovations cost more than the likely increase in value? You need to consider this carefully with your long-term goals.
For example, if you are looking to sell in the foreseeable future and make a profit, you may need to rethink the project. If, however, the aim of your renovation is to maximize your home for your personal use for years to come, it may well be an overspend that you are happy to incur.
Before commencing the work speak with an estate agent about the proposed work to gauge their opinion on the value it will add to your home and whether or not the renovation will be a desirable addition to your home.
2. Plan Your Renovation Meticulously
When it comes to a large-scale project, the more detailed the plan, the better placed you will be to keep a handle on the spend. Firstly you will need to get an idea of how your budget will be split, will the budget be primarily consumed by structural or building work or on internal fixtures and fittings? Don’t forget to budget for labor and material costs also.
Here are some tips to consider in the planning stages when deciding on your budget:
- It is more cost (and time) effective to create new rooms out of space that is already available. Removing or building structures can add a considerable cost to your budget.
- Remember to include a contingency budget for any unforeseen hurdles that may crop up along the way. It is recommended this be about 10% of the total budget.
- Large building projects will usually require professional input, be sure to get this advice before settling on a budget or agreeing to the renovation. Commonly people will significantly underestimate the cost of a build or run into unforeseen complications and thus will unexpectedly eat into their budget.
- Remember to include any cost you may incur for additional accommodation into your budget. If you are required to move out during the project and will be liable for extra charges to fund your stay elsewhere, be sure to factor them in.
- Don’t get carried away when it comes to the internal fixtures. If you allocate yourself a budget for the interior fixtures and fittings, then be sure to stick to it. It can be tempting to overspend on the dream kitchen or perfect bathroom but if it is out of your budget, look the other way.
- Use online tools, shop around for the best deals, and compare prices and services to ensure you get the best price. A good way to help you get the look and finish you want on the inside is to choose a few big-ticket items you are happy to spend more on. It could be the roll-top bath, custom-built furniture, or stylish window shutters.
Whatever it is, research your options and get a final price on the item to work into your budget. If it is statement shutters you are after, for example, click here to get an idea of what you can expect and the likely cost it will incur.
3. Obtain Multiple Quotes
For almost every aspect of your renovation project, you could obtain quotes before agreeing to any work. This could be the architect costs, structural engineering costs, build costs, or plumbing and electrical costs. It is always advised that you get at least three different quotes for comparison and be sure you know absolutely everything that is included in the price and what isn’t.
When it comes to deciding upon which quote to choose, don’t always be go for the cheapest quote. Sometimes it is the cheapest quote for a reason.
For example, perhaps you were really impressed with the service offered by the highest quote but are less keen on the price. If this is the case, go back to the provider and ask why their quote is higher and whether there is any room for negotiations to save money.
A top tip when obtaining quotes is to try to use one main contractor to carry out most of the work. This contractor may sub-contract some of the work, but they will ultimately be responsible for ensuring everything arrives on time.
4. Do Some Of The Work Yourself
It stands to reason that anything you do yourself reduces the cost of paying someone else to do it. There are several ways you can save on the expenses by undertaking work yourself, and here are some to consider;
- Protect management. If you can take on the role and responsibility of project manager, you could save yourself thousands. However, the role of project manager can be an arduous one, and the responsibility for ensuring everything runs smoothly and on time will rest with you. Therefore, be sure you have the time and capabilities to dedicate to it before committing to the job.
- Labor. Builders will often hire and pay laborers to do a lot of the heavy lifting. If you can do it, you can save yourself in labor costs. It might be tedious, but it will be worth it in the long run.
- Source the materials yourself. Instead of relying on the tradesmen to source your materials, you could shop around and look to do it. It is worth bearing in mind, however, traders often benefit from trade discounts, so be sure you have researched your options thoroughly.