How to Budget for a Home Renovation

Hands holding piggy bank over architecture drawing, planning for home remodel / saving concept

Are you thinking about renovating your home?

Home renovations are an amazing way to upgrade your home, expand your space, and increase your home’s value.

While budgeting for a home renovation may seem like a lot of money at first glance, you might be surprised by how quickly it can add up if you don’t plan ahead.

If you’re considering a home renovation, it’s important to budget for the costs.

How to budget a home renovation can be tricky if you don’t know what to plan for.

There are many things to take into consideration if you’re wondering, “How much should I budget for a home renovation?”

But don’t worry! Ridgeline is here to help you sort it all out.

Here’s how to budget for a home renovation:

Research and Plan

Before you worry about how to budget a home renovation, you need to come up with a plan.

This will help you determine what kind of permit you need, how long it will take to complete the project, and whether there are any restrictions on what you can do.

You may also want to find out how much contractors charge for their services in your area.

If possible, try looking at examples of other homes that have been renovated with similar features.

This way, you can get an idea about how much work goes into each type of upgrade – and whether or not they’re worth the investment (or if there are any less expensive alternatives).

Budget for a Down Payment

A home renovation project can be expensive, so it’s important to have enough money saved in advance so that you don’t get stuck with an unexpected bill halfway through the job.

A good rule of thumb is to try and save 20% of your total renovation costs before starting any work.

But saving up large amounts at once may not be realistic for your financial situation right now.

If you still want some freedom when it comes time to choose colors and finishes while working with contractors, consider putting down smaller deposits instead!

Or you can look into how to finance a home renovation.

Budget for Supplies

You may be surprised at how expensive your materials are.

They can often be one of the most expensive parts of a project, so it’s important to know what you need before you start shopping for them.

Buy in bulk when possible. If there’s any way that buying in bulk makes sense for your project and budget, then go for it!

It will save money in the long run because buying in bulk often means that each unit costs less per item than if you bought them individually or in small quantities.

Budget for a Home Designer 

Architects discuss which team to choose the color of the house. house design with working tools.

Coming up with a design for your renovation on your own can be time-consuming and challenging.

When you’re figuring out how to create a budget for a home renovation, don’t forget to factor in a home designer.

A professional home designer can help you bring your vision to life by planning out every detail of your renovation, from lighting to flooring, layouts, colors, furnishings, and more.

They understand how to work with small and large spaces and can create the perfect design whether you are renovating an area like your kitchen or your bathroom.

Budget for a Contractor

It’s also important to consider the cost of labor when estimating a renovation project.

Labor is the biggest part of most renovation jobs, so it’s important that you get an accurate estimate of how much your contractor will charge you.

You may want to do some of the work yourself to save money and help keep things on schedule, but make sure that your skills are up for the task before attempting anything too complicated!

Make sure you get several estimates from contractors in your area.

Budget for Permits

You may need to get permits and licenses, which can also affect the total cost.

Permits are required for projects that involve structural changes to your property or the area surrounding it.

Licenses typically require the completion of an approved course or exam along with passing a criminal background check. 

In addition, some municipalities have their own licensing requirements. For example, many communities require contractors who work with electricity or gas systems to have an electrician’s license before starting work on those parts of a project.

Budget for a Hotel

If you can’t stay in your home while the contractors are at work, you may have to look at where to stay during a home renovation.

Unless you can stay with friends or family, you may have to budget for a hotel.

The best way to save money on a hotel is to use travel websites and apps to look for the best deals in your area.

Budget for the Unexpected

The renovation will certainly go smoothly, and you’ll be done on time, but it never hurts to be prepared for the unexpected.

It’s easy to forget about hidden costs like plumbing repairs or structural problems that crop up during construction, so make sure your budget includes a little extra money just in case something like this happens.

You may also want to consider including some contingency funds in case there are additional expenses due to unforeseen circumstances (for example, delays caused by the weather).

Budgeting for a Home Renovation

Remember that it’s always best to be prepared and have a plan before starting any work on your home. 

But even though having a good budget is important, it’s just one component of renovating a home

Our professional team of contractors at Ridgeline Improvements is ready to help you with your Edmonton renovations.

From conception to completion, we are dedicated to bringing your vision to life while helping you stay within your budget.

Contact us for more information, or click here to get started on a free quote.