According to experts, spending only 10 to 15 percent of your home’s total value on home renovation is ideal. Although it is easier said than done, if you know how to set your budget for renovation, you can easily handle a project of any enormity.
If you are clueless about creating a budget for home renovation. Let us help you.
Here is how you can create a home renovation budget in six easy steps.
1. Determine your objectives
Knowing what you want to achieve with the renovation makes subsequent tasks easy. So, start by defining your objectives.
- Why do you want this renovation?
- What is the timeline?
- Do you have sufficient funds to support this project?
- Is the renovation cosmetic or functional?
- Are you renovating a specific area or entire home? If it entails a vast area of your home, cree a priority list.
- Are there any setbacks or risks associated with the project?
Once you get a clear idea of your goals, breaking down the project and estimating costs will become much easier.
2. Breakdown the project
After understanding the aim and scope of the project, break it down. To break down the project-
- Create a list of spaces you want to renovate.
- Create a list of items you want to remodel, for instance, replacing kitchen appliances, changing bathroom fixtures, updating the porch, replacing doors or windows, installing new flooring, etc.
- Create a detailed list of items you would need for the renovation.
Having details of the renovation will help you set your priorities, create a roadmap, and communicate your expectations clearly to your contractor.
3. Estimate the cost of home renovation
Now that you have a detailed list of the project breakdown and materials required, estimate the costs.
Here is how to go about it-
- Estimate the cost of the architect, engineer, interior designer, plumber, painter, and handymen.
- Research the materials and fixtures you want online and write down the cost of everything from faucets to light fixtures, door knobs, tile, paint, window treatment, kitchen appliances, and all other things you will buy for the renovation.
- If you shop anything online or get things delivered to your home, add the shipping costs.
- Add the cost of appliance installation.
4. Reach out to multiple contractors
Do not settle for the first contractor you meet. Instead, shortlist three to five contractors and meet with each to discuss your plans in detail.
Communicate your plan and expectations clearly to them and then get bids. Compare the total costs and go with the contractor who aligns with your budget and expectations.
5. Create a contingency fund
Even if you have a robust plan, you never know what adversity will crop up. Hence, having enough money for a crisis is essential.
While calculating the total cost of the project, set aside some money (at least 3 to 5 percent of the total renovation budget) to cover unforeseen costs, such as any structural damage, unexpected cost increase, requirement of any specific material, or any other roadblock during the project.
6. Consider the living expenses
You might have to move out of your house during the renovation or depend on outside food (in case of kitchen renovation). It is better to calculate the additional costs you will incur during the renovation project beforehand.
In a nutshell
You will be meeting your financial obligations throughout your renovation project. Hence, it is essential to know how much you can afford to spend on the renovation. Creating a realistic home renovation budget will not only help you create a robust financial plan for renovation and meeting your financial obligations but also prepare you to deal with any nasty surprises during the project.
Use this guide to create a financial budget according to the specific requirements of the project.
Bonsai Developers: The best renovation contractor
Counted among the top home renovation contractors in Delhi, Bonsai Developers can carry through any renovation project with ease and finesse. From taking care of the labor to finding the best materials, Bonsai Developers does everything for you.
So, if you are planning a home renovation, contact Bonsai Developers. Visit their website www.bonsaidevelopers.com or call +91 92664 27226 to book a meeting.
