How to Create a Budget for Your Home Remodel Project

Getting your home where you want it to be can feel like a never ending process. Especially when there are certain elements of your home you know will be pricey to remodel. But with some patience and wise budgeting, your dream home might be closer than you think. Whether you’re pursuing a minor kitchen flip or a long-awaited basement finish, it’s important to have your finances in order. If you follow these simple tips for creating a budget for your home remodel project, you will be well on your way to accomplishing your home renovation aspirations. 

How much does a home remodel cost?

The home you purchased a decade ago may no longer meet your needs today. While selling and moving to a new house is always an option, remodeling your current home can be an excellent way to make it work for your lifestyle. On average, a complete home renovation for a  2,000-square-foot home costs between $40,000 and $300,000, depending on the scope of the project. Here’s a breakdown of how much smaller home remodel projects cost on average: 

Project	Cost
Living room remodel	$5,000–$10,000
Bedroom remodel	$1,500–$5,500
Kitchen remodel	$14,550–$40,400
Bathroom remodel	$6,600–$28,000
Basement remodel	$12,023–$34,497

*information from Angi

In this guide, we’ll break down the key factors that impact renovation costs and share practical tips to help you save money.

Find Out Your Project Cost 

When nailing down a budget for your project, step one is determining how much money you’ll realistically need to set aside. Your project cost hinges on the scale, amount of materials necessary, and location among other factors. While it’s difficult to nail down an exact figure for any given project, we can garner an educated estimate that will account for labor, materials, and incidentals. 

Let’s explore the factors you should consider while drafting an estimate for your project cost. 

Define Scale and Goals of Project 

Every home renovation is as unique as the homeowner pursuing it. Decide which room or rooms you want to renovate, what aspects of the room you want to change, and what style you’re going for. In this initial phase, it can be useful to lean on tools such as Pinterest or Instagram to gain inspiration. Figure out your direction and goals for your project. Are you looking to expand the space? Add more storage? Change the style? Once you have a general idea in mind, a trustworthy home renovation expert will help you work out the details. 

Find Possible DIY Options 

While bigger projects such as taking down walls or other structural projects should be left to the professionals, there are plenty of smaller projects the ambitious homeowner can tackle on their own. Take a realistic look at your goals. Assess whether your skillset is up to the task. DIY projects such as painting, installing tiles, or replacing hardware can be beginner-friendly. There are plenty of resources online that can offer step-by-step advice to help you accomplish an array of home improvement projects. Don’t overlook DIY options as a way to save money. 

Know Your Financing Option 

There are a few routes you can take when looking into financing your home improvement project. Here are your options: 

• Save up and pay cash

• Use credit cards

• Take out a home equity line of credit 

• Take out a traditional loan 

Each of these options has benefits and drawbacks. It’s important to take a realistic look at your financial situation and choose the best option for you and your family. Saving up and paying cash has no impact on your credit but it may take a long time to garner the necessary funds. Credit cards can offer a quicker turnaround and potential reward benefits if your carrier offers them, but it may also be tricky to keep up with monthly payments if you don’t budget for it. Be discerning when you choose the ideal path forward. 

Shop Around For the Best Price 

Once you establish a direction and decide what projects you’ll DIY and which you will contract out to professionals, be sure to do your research. Don’t go with the first supplier or contractor you come across. Shop around. You can even schedule interviews to assure you hire a compatible, cost-effective professional for your home renovation project. 

Set Aside Contingency Fund 

Every remodel is subject to unforeseen issues. Whether there are not enough tiles or unexpected repairs, you should always account for incidentals. Be sure to set aside a buffer for the inevitable. A good rule of thumb is to save 10%-20% of your overall budget for incidentals. 

Partner With a Trusted Remodeling Expert 

If you’re in the Loveland or Northern Colorado area, Colorado Paradise Builders is ready to turn your house into the home retreat of your dreams. Whether you’re in need of a quick or a complete, multi-room remodel, we have you covered. Give us a call today to learn more about our services. 

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