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It’s never easy to stick to a budget. It’s considerably more difficult to create a budget for a significant project you’ve never done before. When it comes to home renovation expenditures, creating a realistic budget necessitates a well-thought-out strategy and extensive research.
Thankfully, we’ve already done the most of the legwork for you. Simply follow the steps below to generate a remodeling budget that will prevent you from going beyond on your next project.
The average cost of upgrading a property less than 1,000 square feet is $18,347, according to HomeAdvisor but does not account for the 30% increase in costs of material this year, so figure that closer to $23,850. The average cost of a home in the 3,000 to 4,000 square foot area is $470,121 in Southern California. Renovations to an older property are more expensive than those to a modern one, particularly if the wiring, plumbing, and other systems aren’t up to code.
Any refurbishment or home renovation should cost between $150 and $250 per square foot in most cases.
Prioritizing projects by room and building a budget around the cost of each individual job might be easier and more inexpensive when deciding on your home renovation budget. It’s also important to put a budget into your interior design or exterior plan if doing an outdoor project.
Consider the whole value of your home to obtain a sense of what your remodeling budget should be. You should not spend more than 10% to 15% of the value of your home on a single room. If you spend more, the renovation’s value will not increase proportionally to the value of your property.
The majority of the time, it’s difficult for a homeowner to know where to begin. Early on in the process, we recommend bringing in a design-build contractor that can chat about your goals and priorities during their initial consultation and lead you through a project that is within your budget.
Before you create a budget for your home remodeling, you must first figure out how you will pay for it. If you’re paying cash, taking out a loan, or asking for credit, your renovation budget must fall within the constraints of your financial resources.
Set aside 10 to 20% of your available funds for unforeseen expenses once you’ve determined how much you can afford to spend. This is critical. Something will go wrong, or the expense will be higher than expected. You may be sure you’ll have enough money to accomplish your project no matter what occurs if you set aside a percentage before you start.
We recommend putting aside 10% to 20% of your budget for a cushion. There should be very little unplanned work if you engage the correct contractor to undertake some exploratory demolition or investigation work early on. However, once a project begins, many of our clients bring out the ‘While you are here, can you also…’ list, which we can readily fulfill if the client has the necessary funds put aside.
Use the following suggestions when putting together your remodeling budget to save even more money: