Findings in a recent study of home buying and remodeling trends included the comforting fact that 79 percent of owners completed a home remodel project either on budget or for less than anticipated. The Zillow findings also reported that Millennials are more likely to exceed their budgets than other generations, particularly those who hired professional contractors to complete the work. Half of such projects exceeded the initial budgets, compared to only 38 percent of the projects undertaken by owners over 35.
Another study conducted by the online design site Houzz.com, however, contained the startling statistic that 31 percent of their home owner respondents began a renovation project without an initial budget, and another third exceeded their budget figure by a substantial amount.
Approach Renovation Budget Setting Realistically
While setting a budget may involve some extra “home work” before the work even begins, it can be the first and best step to a successful remodel. With an average 2015 “spend” between approximately $60,000 and $75,000 and an average duration of between two and five months, home remodeling involves a lot of money, time and effort.
So, what’s the best way to set a budget and stick to it?
Here are some tips from those in the know:
- Analyze your wants in relation to your needs. If you love your home and plan to live there for at least another five years, think about what will make you happy over the long term.
- Be honest about your finances, your age and your expectations. Resale value is a less valid reason to remodel than making needed repairs, adding additional space, or enhancing personal lifestyle, according to the experts.
- Look for quality, no matter how tight your budget may be.
- Consider planning a major remodel (and its associated decorating) in stages rather than all at once.
- Spend in relation to neighborhood values.
- Splurge on something you love, whether it’s a pro-style range or trendy glass shower tile, but balance that expenditure by looking for ways to economize in other areas.
- Finally, build a contingency fund into your renovation budget. If you don’t need it, it will be “found money.”
Shop and Make Home Design Decisions Early
Take the time to shop for decorative components well in advance. Work with your architect, designer and contractor to develop a timeline. Select appliances, fixtures, lighting, cabinets and countertops, finishes, flooring and tile while your plans are being finalized.
Remember that it’s always easier to make changes during the initial planning stage than it is once actual construction begins. Changes and substitutions made while work is underway invariably result in delays and additional cost — in actual dollars and in lost time.
A home redo can be exciting and rewarding. If you’re beginning to think about what improvement make sense, there are some great tools available to help you get started. In addition to online resources, talk to local suppliers and construction professionals, and visit showrooms in your area to see the latest trends for kitchens, baths, colors and specialty materials.
Now is always the best time to begin!
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