We’ve all been there: you have a great idea for a home renovation that will make your house perfect for you and your family. Maybe you saw a big reveal on a remodeling TV show or got inspired as you perused Pinterest or Instagram. This remodel you have in mind would make your home everything you want it to be…and then you start to think about the price. Just like that, your hopes are dashed. But they don’t have to be!
The truth is that remodeling can be expensive, but it’s absolutely possible to remodel your home on a budget. Through careful planning and strategy, you can make it happen. And a remodeled home is worth the effort. Having a home that you love, that serves you and your family well and meets your needs–and wants!–is a great thing. And it’s within your reach.
Step One: Set a Budget
It seems obvious that in order to remodel on a budget, you need to have one, but it’s true: you need to decide how much you can afford to spend. There are three main ways to find a remodel (besides paying cash):
- A home equity loan
- A home equity line of credit (HELOC)
- A cash-out refinance
It’s important to think about how much your loan payments will be, how much your home is worth, and how long you plan to stay in the home. For a detailed look at setting a remodeling budget, check out The Complete Guide to Budgeting for Your Lancaster Home Remodel.
Set aside about 20% of your budget for the unexpected, changes you want to make to the scope of work after it’s started, or whatever else you may need it for. Once you know the amount you have to work with, you’re ready to move on to the next step.
Step Two: Make a Plan
Making a thorough plan before any construction is done will save you money. We believe that the best remodeling process is Design-Build for this reason (among other great benefits!). In this method of project delivery, all aspects of the project–from planning and design to the finished product–are handled within the Design-Build company. The company you hire will take you through every part of the process. This means that the people working on your home are all part of one highly collaborative, creative, problem-solving team.
As the project is planned, project developers will help you stick to your budget–making changes and suggestions as necessary. You’ll know before construction begins what the project will cost. And because so much planning has taken place before the hammers begin swinging, the proposed budget and the actual cost of the project will be very close (unlike in traditional remodeling companies, where the planning and budgeting are often created as the project moves along, resulting in costly change orders).
Step Three: Prioritize
On your own or–even better–with the help of your project developer and designer, and in light of your budget and plan, begin to rank the possible changes to your home. First, differentiate between needs and wants. If your home needs repairs, that’s an obvious “need.” Maybe you’ve started working from home and need a home office. Or you have an older relative coming to live with you and need to make your home more accessible. Needs get first priority in terms of your budget and remodeling plan.
Next, think through your wants and list them in order based on the impact they’ll have on your life. What one thing would you just really love? How about thing number two? Enlist the help of anyone else who lives in the home and see what their top few wants are as well. This process will give you clarity as you make decisions about what you can afford in your remodel.
Your project developer can help you make strategic cuts and also help you figure out how to take care of the “needs” and get as many “wants” as possible. Some possible cost-cutting solutions include
- doing a refresh instead of a remodel on your kitchen or bathroom.
- keeping the same layout in your kitchen or bathroom but replacing cabinets, fixtures, appliances, and countertops. This means not having to move walls, plumbing, and electrical, which will save money.
- increasing your home’s efficiency without increasing its size, by using built-ins, custom storage solutions, and changing layouts of rooms without adding square footage.
Step Four: DIY What You Can
While there are definitely parts of a remodel that you want to be handled by a professional, if there are things you can do to upgrade your home on your own, DIYs usually save money. Talk to your contractor about parts of the project you may be able to handle. You may be able to paint, for example, or if you know how to tile, you might install your own backsplash. Just make sure to leave things like electrical work, plumbing, and structural changes to licensed professionals.
Step Five: Plan for Phased Improvements
Phased improvements mean you tackle the projects you want done in your home remodel strategically, but not all at the same time. You can plan to complete everything on your wants list eventually, as you have the resources to do it. Your contractor can help you make a long-term plan for your home that makes sense. You can feel good about doing the most important things now and holding off on the rest, knowing you have a clear roadmap to the home of your dreams. There are other benefits to doing phased improvements.
- If you’re planning a whole-home remodel, doing it piece-by-piece means you’re more likely to be able to stay in your home. Staying put means you don’t have to spend the money on another place to live.
- You can take on projects as you have time. If you need a break from remodeling, you can take one! Plan around your schedule.
- With a long-term plan, you can incorporate features now into your home that will serve you later. For example, you can install a larger HVAC than you need right now, knowing that in the future, it will be cooling more square footage.
Step Six: Choose Cost-Effective Materials
You may want the most high-end finishes and features in your home, but you can find great alternatives that cost a lot less. For example, you can choose cultured marble for your countertops instead of quarried marble. Or semi-custom cabinetry instead of custom. You can find a gorgeous ceramic tile for your bathroom with a much lower price tag than the Carrara you planned to use. And the list goes on.
Your contractor, project developer, or designer can help you know where to cut costs and where to spend money. They can help you get the look you want and the quality you need without choosing the most luxurious and expensive finishes.
Remodeling is Within Your Reach!
You may not be able to cut a check for an expensive whole-house renovation right now, but you absolutely can remodel your house on a budget. A good team will be able to help you make decisions that align with your financial considerations and get the most out of your home. By coming up with a good plan, making smart choices, and being careful, you can turn your current home into the home you’ve been dreaming of. We’d love to help you get there. Schedule a consultation with us today and let’s get the process started!
