Updating your home can be an exciting endeavor. However, it’s important to establish a preliminary budget before you embark on your home design journey. This will help define the scope of the project and provide a ballpark figure for overall costs.
Your budget should include materials, contractor costs, permit charges and inspection fees. Don’t forget to consider the cost of renting power tools and other equipment you’ll need if you’re going to do the work yourself.
If you’re not paying upfront for the full cost of the project, it’s important to incorporate the costs of financing. Remember to include relocation and storage costs in your budget if you’re unable to stay in your home for any part of the project.
When hiring a contractor, we recommend getting at least three different estimates. Some factors that may influence the contractor’s price include the quality of work, local market, labor availability, weather, and time frame.
As a rule of thumb, renovation costs should account for no more than 20% to 30% of the value of your home. Depending on the project, materials may account for 50% to 75% of your total budget. When tracking these costs, make sure to account for the details including electrical, plumbing, light fixtures and more.
In calculating your budget, make sure to use everyday costs for materials. For custom-sized materials, factor in an extra 6% to 10% cost for waste.
It’s also important to familiarize yourself with current government codes and regulations during your renovations. You may have to make additional updates that weren’t factored into the original scope of the project.
