Are you planning to renovate your home but aren’t sure how to stay within your budget? Don’t worry, budgeting for a home renovation doesn’t have to be overwhelming.
Follow these 4 simple steps to keep your remodel within budget and achieve the look and feel you desire.
Step one: 5% to 30% Rule
The 5% to 30% rule is a great starting point for budgeting your home renovation.
This rule states that your home remodel should not cost less than 5% and no more than 30% of your current home’s value.
Step three: Expect the Unexpected
Older homes can come with a lot of surprises, so make sure to prepare for the unexpected. Bringing your home up to code might bring you closer to the 30% mark or even surpass that threshold.
Step four: Plan for the Future
When budgeting for a home renovation, consider future variables.
- Will knocking that wall in between your dining room and living area help create an open floor plan?
- Will this decision pay for itself when you put the house on the market?
- Do you plan on living in this home for the next 10-15 years?
Answering these questions will help you decide which items to splurge on and which items you can purchase from affordable vendors.
Creating an Excel sheet with your needs and wants, along with comparing the cost of different contractors, will help ensure you stay within your budget. With a little research and planning, you can successfully complete your home renovation and stay within your budget!