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.
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.
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!
Home renovations are wonderful – you get to update your home to your tastes, and likely increase the resale value down the road. However, renovations are a large undertaking that require plenty of materials, time, and labour, all of which cost money. For this reason, before you even begin to plan the details of your renovation, the first step should be coming up with a budget.
It might not sound like the most enjoyable task, but it will help you avoid taking on unnecessary debts by determining at the outset what you can comfortably afford. And if you love HGTV or thumbing through home renovation magazines, a budget can also help you prioritize what is within your reach. To avoid breaking the bank with your next renovation, here are five tips to help you stay on track with your budget.
#1. Plan, plan, plan
One of the main keys to successfully renovating your home on a predetermined budget is to know as much as possible before the first nail is hammered. It can be easy to look online and make general assumptions about costs, but don’t forget that there can be huge differences in price for things you’d otherwise think were consistent. For example, floor tiles that may look similar in quality can be radically different in price. Small choices like ceramic versus porcelain, or the size of tile can result in a big change to both material and installation costs.
Customizing your selected materials also adds to the bottom line. For example, you may see countertop prices and think you know the price per square foot, but things like non-standard lengths and holes that need to be made for sinks and faucets can add to the cost.
#2. Stick to the plan
Once you do come up with a plan, stick to it as best as possible. Last minute changes will undoubtedly extend the timeline of your remodel, which means you’ll be paying more in labour costs. You also run the risk of doubling up unnecessarily on materials if you change your mind and are unable to return your original selections.
#3. Budget for additional expenses
Aside from labour and materials, keep in mind that you’ll likely have to pay for drawings and construction permits. And if your home is older, you may have to update things like electrical work that isn’t up to current code. Also, be sure to check if renovating your home means paying a higher tax rate and insurance premiums.
There are also expenses like taxes and shipping on materials, hotel stays and eating out more often which can add a hefty sum to your budget.
Overall, it is a good idea to budget 20% of your initial renovation costs for potential changes, material or design upgrades, and unforeseen costs.
#4. Make compromises
If you plan ahead, you can see an itemized list of what will be costing you money. And if one line item seems high compared to other higher ticket items, you can likely find comparable items at a lower cost. For example, while fancy lighting fixtures may look beautiful, they can cost a pretty penny. To reduce costs, see if the same style can come in different materials, in a smaller size, or can be created to be a bit less ornate.
If you’re having a hard time choosing materials or knowing what a comparable alternative is, an interior designer can guide you.
#5. Communication is key
When you’re ordering materials, don’t be scared to ask for discounts. Just because they gave you a quote doesn’t mean it’s not negotiable! Or you can always ask your contractor too if they have a recommended supplier – contractors are often repeat customers who do a large volume of orders, so they can have more leverage for price negotiations.
Also, be sure to tell your contractor your budget. Many people assume a contractor asks because they want to upsell you. However, the real reason for this is they need to see how they can best help you. Good contractors will always work with you to hone in on exactly what you want to make your renovation dreams come true within your allotted budget.
If you are ready to renovate your home or have questions about the renovation process, schedule a conversation with us today!