Home renovation – how it all adds up

As exciting as a home renovation is, it can also be expensive. From materials to labour, the costs of creating your dream home can add up. When setting the budget for your renovation project, there are a number of factors to consider before settling on a final number. We’ve come up with a few major cost categories for a typical home renovation. These categories are where the money for your renovation usually goes and should be researched thoroughly before you start your project to ensure you’ve put the appropriate amount of money aside.

Materials

In regard to the materials required for your renovation project, you get what you pay for. When coming up with a budget, you want to consider the quality of materials you want to be used in your home. For example, if you’re upgrading your kitchen, opting for stone countertops and custom cabinets will require a much larger budget than laminate countertops and standard stock cabinets. Seeing that stone countertops such as marble or granite can cost anywhere from $2,000 – $5,000+, while laminate countertops come in at a more affordable price of $800 – $1,600+, there can be quite a difference in the budget required for your reno depending on the materials you want.

Labour

The amount of money you set aside for your renovation is heavily influenced by your decision to either DIY it or work with professionals. If you DIY your renovation project, you may get to save big on labour costs. However, unless you have some expertise, going down this route could cause some very expensive mistakes.

Homeowners who opt to hire professionals should always leave room in their budget for contractor costs. Most contracting companies will charge anywhere from 10 – 20% of the total renovation costs. So, if for example, your renovation costs $20,000, then you can expect a contractor to charge you anywhere between $1,000 and $4,000. Remember, each contractor is different, so it’s essential to get different quotes. This will ensure that you get the best deal and quality service.

Permits and inspections

Depending on the scale and type of renovation, you may be required to have a building permit and to book an inspection to make sure the work done in your home is safe and up to city standards. Generally, projects that require adding or removing walls, electrical work, adding accessory structures such as garages and patios, and even completing an unfinished basement requires a building permit and subsequent inspection. The amount of money set aside for building permits can vary greatly depending on where you live. Nevertheless, these costs should be factored into your final renovation budget.

Interior design and home styling

No home renovation is complete without the perfect touches of design. Interior design is an important step in bringing your renovation dreams to life and creating a space that truly reflects our personality. When budgeting for your home reno, it’s essential to consider the costs of working with an interior designer, if you choose to go down that route. Prices for interior designers vary as they all bring different levels of expertise. Some may charge $150 an hour or less, while others charge upwards of $250. As with any other hired labour, you’ll want to get different quotes to ensure you’re getting a fair price.

Mistakes and delays

Finally, when putting together the budget for your renovation, it’s important to factor in the possibility of mistakes and delays. No renovation project is perfect. Sometimes materials take longer than expected to arrive and delay the renovation process. We suggest putting some money aside, as much as 20% of your total budget, to cover unforeseen events and circumstances that may arise.

Budgeting for a renovation can be tricky. If it’s your first time embarking on a renovation project, it can be difficult to know what to set money aside for. There are many factors that go into a successful renovation. However, as long as you consider the major costs mentioned above, you’re well on your way to budgeting appropriately for your next renovation.

Thinking of remodelling your home? Get in touch with us today!