How (Not to Go Over) Budget for Your Home Remodel

Almost half of homeowners go over budget when doing a remodel, according to a report from home improvement site Houzz. A more alarming stat: Only one in five comes in under budget. Here’s how to be of the winners in this battle.

Let Goals Drive Your Budget.

First, decide what’s most important to you.  Those “must haves” rather than the “if I had a million dollars, I’d…” kind of stuff.  Your overall project goals should really determine where you allocate your funds.

So, let’s say your primary goal is to expand the cabinet space in your kitchen.   Are custom cabinets or high-end finishes the most vital part of achieving that goal?  Yes, those bells and whistles are awesome, but experts say that using stock sizes can save you about 20% to 30% on your budget.  So if your bottom line is to increase kitchen storage space, stay on budget by sticking with stock cabinets instead of paying more for custom.

On the other hand, if your goal is to bring some bling to your culinary atmosphere, custom cabinets may be where you want to splurge.

Plan Ahead.

Any time you’re going to do a major renovation, you need to expect the unexpected.  And plan for it.  You could open a wall and find electrical work needs to be done. You could find that your chosen tile is discontinued and your second choice comes at a higher cost. Many experts recommend building a 10% buffer into your budget, and some suggest even more padding to be safe — up to 25% for those with older homes. Historically, that cushion gets used more often than not.

Keep Your Cool.

When the unexpected does arise, it can pay to keep a level head. If/When things go awry, give yourself at least 24 hours to make your next move.  When people are reaching their threshold for how long and to what degree they’ve had their house torn apart, they have a tendency to make rash decisions just to “get it done.”  And the last thing you want is to have to live regretting those ruby red counter tops.

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