When it's time to upgrade the kitchen, bathroom or any other part of your home, you need a budget. This comes before any paint is selected, tile is picked out or anything else. Here are a few tips to help you budget for home renovations properly.
Estimate the Overall Costs
Whether you are buying a new home that isn't fully turnkey or you are updating your existing home, an estimate of costs is the first step. You want to start by using the appraised value of your home and figuring out how much each room is worth. The rule of thumb is to spend no more than the value of the room on renovations.
For example, if your kitchen makes up 15% of the home's value and the home is worth $250K, you don't want to spend more than $37,500 to update the kitchen.
You don't want to just guess when it comes to how much something will cost. You want multiple quotes from contractors so that you can choose the right option for your needs. This will also protect your budget from getting inflated by a contractor looking to take advantage of you. Usually, three to five quotes is enough to see which price is fair.
Make a Plan and Stick to it
The biggest budget killer is changing your mind. Once you decide on a fixture, flooring or another element, don't change it, especially if it has already been ordered or even installed. Changing your mind will only lead to more expenses, which you have not included in the budget.
Account for Unknown Costs
Sometimes, a contractor will come across something unexpected while doing renovations. You need to be prepared for this. Set up your budget with a cushion just in case they discover something that must be handled.
These tips will help you set up a home renovation budget and keep you within it. Make sure you pad your budget in case of the unexpected and stick to the plan.