Budgeting: The Curse Word of Remodeling
 

                When budgeting for a project it may seem daunting to even start if you don’t know how much materials or labor may cost. Different materials and different parts of the country can affect the prices but here are a few tips to try to stay in line.

1)      Start with figuring out what you want to do to your home and list out what is most important to you and what would be nice but not necessary. This will help you know where to focus your expenditures.

2)      Get 2-3 competing bids. To help assess what is reasonable and what is not it is helpful to get input from a few different contractors to get a general idea of what the project will cost.

3)      Keep in mind that the most variable part of the budget will be the materials you pick. For example you can find tile that is $2.00/sf or $52.00/sf. If you are working with 150sf of material this alone can be the difference of $7,500.00. The best way to control your budget is to be mindful of what allowances you have for materials and be prepared to switch materials if needed.

4) Have a reserve of funds as a buffer. It is very easy to push past your budget because it sneaks up very slowly. An extra $50 here, an extra $100 there and suddenly you are way past where you were planning to be. By leaving an extra buffer you can help keep yourself in line and be prepared for any unexpected expenses.

5) Have a good designer help you. Although there are initial design fees this cost can be easily saved in the long run by getting advice on what materials to use and where you should spend or not spend extra money.  Also, having a design set in place prior to construction can save on labor costs and help alleviate some unexpected costs that arise when the plan is not fully communicated before work begins.