How to Establish a Realistic Renovation Budget
It’s a well-known fact that when planning major home renovations, the risk of cost overruns is very real. How can you prepare a budget that will actually match your cost projections?
Identify your needs
Obviously, the first step is to establish what the most urgent renovations are. You may want to redecorate your living room, but if the roof needs to be replaced, it should be considered a priority. Continually putting off a home’s basic maintenance needs can lead to expensive emergency repairs later on, such as fixing or replacing a broken water heater.
It’s also essential that you inquire about project costs before getting started if you want to avoid unpleasant surprises when the bills start rolling in. According to a survey by the CIBC, Canadians said that they would spend an average of $17,000 on home renovations in 2015.
Choose realistic improvements
Renovating the kitchen and bathroom are almost always profitable investments, along with finishing the basement and refinishing the floors. Other types of renovations are nice but add little value to the home, such as the addition of a pool or skylight. Always use common sense. For example, don’t get carried away and spend $100,000 on kitchen renovations in a home that’s worth $200,000. It’s also a good idea to resist the latest fashion trends and many extras that can inflate the bill.
Determine who will be doing the renovations
If you’re a handy type of person, it can be very economical to do the renovations yourself, as you will save on labour costs. You simply need to buy the materials and take the time ... and have the necessary expertise! If you’re feeling confident, the savings can be substantial but shoddy work can also end up costing you more. It’s better leave the heavy duty work, such as roofing and plumbing, to the professionals, while you get your hands dirty painting your child’s bedroom, for example.
Good luck with your renovations!