Home Improvement: How to Budget a Home Remodeling Project

It is time for new cabinets, carpet, paint, or lighting in your home. A house remodeling project is both exciting and intimidating. Unless you are wealthy, money is always a factor in the amount and quality of any remodeling project. The key for happiness at the end of the process is to formulate a realistic budget for the job.

Limit the amount of space to be remodeled.

Overreaching is one of the worst hazards for novices who are remodeling. Unless you are a contractor, it is difficult to foresee all of the possible cost overruns in a remodeling project. By limiting the size of the project or breaking larger project into several smaller ones, you can lessen the likelihood of major cost surprises during the actual construction part of the process.

Overestimate the floor size and the size of other items.

Go big. This may sound odd. However, one of the easiest mistakes to make in estimating a remodeling job is the amount of materials that will be needed. Flooring, siding, and other items that can generate large amounts of waste are some of the major places where costs can leap beyond your projections.

Waste is always a part of all remodeling jobs.

Cutting errors and the natural waste caused by having to waste a whole piece to get a partial piece for a small space produce waste. You may need as much as 25% more than your measurements may indicate. Do-it-yourself projects generally produce higher waste levels than those completed by professionals.

Decide on the level of quality.

Granite counter tops are very expensive. Laminate is much cheaper. Paint costs can vary a lot depending on color and quality. Lighting, flooring, siding, doors, windows, and a long list of items follow this same pattern. You can go inexpensive, medium grade, or high cost depending on your budget and taste. The cost of your project will be significantly affected by your decisions in this area.

Determine what parts of the job will require professional or extra help.

Labor costs money. This is why many people opt to try to do remodeling projects without hiring a contractor. Be honest with yourself at the beginning of the project and determine which parts of the job will be better done by professionals. Get estimates for those pieces and add them to your total budget.

Call several home centers to get prices for materials.

Shop for the materials and equipment that you will use in the project. By being willing to purchase your material list in pieces, you may be able to save a great deal of money. If you go this route, make sure that you are comparing apples to apples. Often, home centers will carry a lesser line than their competitors to give them what appears to be a price advantage. Watch that the quality remains where you want it.

Add in extra cost for new tools.

For do-it-yourself efforts, you may have to beef up your tool chest. Borrow or rent items that you will only need once to help you save money. You may need more powerful versions of tools that you already own. Sometimes, you will need to get a greater variety in the size of wrenches, pliers, and screwdrivers. Everything costs money. Add it to the list.

Total up the cost.

Use your list of materials, labor, tools, and other costs to add up the total estimated cost of the remodeling project. Now, multiply this number by 50%. Add this amount onto the sum. This will give you an idea of your project budget. If the project is large, double the sum instead of multiplying by 50%.

All projects have unexpected costs.

Extra waste and things that are exposed during the demolition stage that add to the final cost of the job can break a budget. These hazards are accounted for with the 50% or 100% increase in the job’s cost estimate. If you cannot afford the final inflated cost estimate, you may need to wait on the project until you can afford it.