Depending on the state of the home, residential remodeling can be quite daunting. What’s more daunting is the process of budgeting for the remodel. More often than not, homeowners spend over budget on a remodel, and thus they end up spending far more than they had originally intended.
Apart from the material costs, you will also need to factor in the cost of labor, which is a separate cost. When planning to remodel a home, it’s best to go with contractors that charge market-related fees and are experienced in the type of remodeling you have in mind, instead of trying to get things done cheaper.
You’ll end up paying for it anyway, because you may sit with subpar work or contractors that never finish the job.
Budgeting for Remodels
The first step is to sit down with your contractor and be realistic about what you want to achieve through the remodel. Remember that you will need to add another 20% on top of the final budgeted amount to account for any unexpected expenditures. It’s important to work closely with the remodeling contractor and architect, if you are using one, regarding the project’s timeline and the costs of each part of the project.
When planning a budget for your remodel, include as much detail as possible. The contractor and architect may be able to assist with the pricing structure for items and materials that need to be purchased and can highlight the labor costs.
The more detailed the remodeling budget is, the less likely you will go over your planned budget.
How to budget for the unexpected
Regarding budgeting, you may want to consider 20% over the expected budget amount for newer homes and 30% for older homes. It’s very challenging to set a final amount that will account for unexpected costs, as these expenses can quickly add up.
You may have to fork out additional money to repair a burst water pipe due to ongoing work at the site, or opening a wall may reveal plumbing, electrical, or pest problems. We recommend 20% and 30% for newer and older homes, respectively.
Tips on saving money during a remodel
There are a few steps you can take and implement to save costs when remodeling your home.
As far as possible, stay organized. Staying on time and a budget can be a challenge, but the more you are organized, the more money you will be able to save.
Research your project well and itemize your budget. This will help you to account for every cent and ensure that you budget accordingly, knowing where, when, and how to cut costs.
Do thorough research on the contractor before you hire them. Ensure that the contractor has a good reputation, is up-to-date with industry trends and standards, and complies with OHS standards and standard operating procedures when remodeling.
Consider doing your renovations during the off-season. This includes the colder months from October through March, depending on where you live.
If you want high-quality, precision work deeply rooted in core values, speak to the team at John G. Moser & Son, Inc. We are the preferred and trusted professionals in all matters regarding commercial and residential remodeling. We are licensed, bonded, and insured for your peace of mind.