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Budgeting for Home Renovation? Avoid These Frequent Mistakes

SONY DSCHome renovation is truly one of the most exciting prospects for today’s property owner. It offers the chance to express creativity and improve daily living—and perhaps more importantly, to increase the overall value of your property and improve your financial situation over time. If you’re planning on selling your home soon, a timely renovation can make it easier to fetch your asking price and close the deal without frustrating delays and endless counter-offers.

But home renovation isn’t easy. Budget is one of the main reasons for this. Even a small renovation can add up to thousands of dollars. That why it’s so important to get things right. You can plan carefully and avoid getting into a bad renovating situation; but you can’t “undo” a home renovation once you’ve committed. One of the biggest frustrations cited by renovating homeowners is that the project went way over budget.

So what are the budgeting mistakes that people commonly make? And as a smart homeowner who wants to make a solid investment in your property, how can you avoid these common mistakes and keep your renovation project on budget?

Not buying enough materials

When it comes to things like floors, walls, or any other type of installation that requires a certain square footage of materials, a very common mistake is only buying the exact amount of material needed. For example, tile floors usually require about 10% extra material to account for breakages and future repairs.

Of course, this only comes into play if you’re buying the materials yourself, rather than hiring a renovation specialist to handle this aspect of the project for you. In general, DIY renovation projects tend to go over budget more than professional ones, due to all of the variables involved.

Not checking the fine print

It is, however, possible to go over budget even if you hire a professional. You might receive any number of verbal estimates and guarantees from your home renovation specialist—but unless those guarantees are locked down in writing, you’re at risk of going over budget. Always make sure you know whether that “quote” is a fixed bid or an estimate that could change. Read the contract carefully to make sure you understand when and how any extra costs are covered.

Stretching it too thin

Another common mistake made by homeowners is simply trying to accomplish too much renovation with the available budget. Accomplishing one or two quality renovations that stand the test of time is far preferable to paying for a larger set of renovations that don’t pass rigorous quality tests, and end up causing problems down the road.

Avoid these budgeting mistakes!

Whether your home renovation is major, minor or somewhere in between, there are probably going to be hiccups and bumps in the road. With careful planning and the right professionals on your side, however, these challenges will be easily dealt with. Keeping your renovation project on budget (or even under budget) is a matter of knowing what you want, understanding the mistakes people commonly make, and pairing with the most qualified home renovation specialists available. Do these things, and you’re much more likely to be thrilled with your renovation and pleased with the final cost.

We hope you’ve found this post useful, and encourage your feedback below.