Renovation Costs

How to Manage Your Renovation Costs

renovationAt the end of a home renovation project, most people claim incredulously that the costs incurred were actually twice the estimated budget! While renovating a property can certainly enhance its market value, the process can also result in a depleted bank account for you.

Unexpected expenditure and escalating costs during the project are common and most people are not financially prepared for the shock. However, a little planning and discipline will ensure that your home renovation project stays within your budget without having to compromise on your expectations.

Hire Professionals

Hiring a professional renovator will make your task easy and organized. When you hand over your project to a renovator, you will enjoy complete piece of mind.

She will be accountable for putting the entire project together and hand over your renovated property in spic and span condition. Renovators have loads of experience and inside-knowledge about vendors, prices, quality, affordable products and more.

They will provide details about all the expenses involved so that you can work out a budget. Moreover, renovators will work within your budget so that there is little chance of cost escalation.

Stick to your Budget

In case you take a DIY approach to property renovation, it is important to first start with a feasible budget and stay within it. Do the rounds of multiple vendors, collect and compare estimates and ask references from people for vendors who provide items at affordable rates.

Always note down the price of each item to get a better idea of the entire project cost.

Remember to count the cost of items like paint, equipments, nails, grout, primer etc. It is best to speak to somebody who has just completed a similar renovation to get a clear idea of the costs involved.

Whatever you do, the bottom-line should be financial discipline and the determination to stay within your budget.

Curb your Wish-list

Wish lists can become unending if not reined in. If you are looking for a budget renovation, you must be practical and cut down on your wish-list. Balancing your budget is difficult, especially if you are renovating for the first time. .

Search for alternatives that may not look dazzling but are of excellent quality.

After each purchase, note down the actual cost against the estimated cost as enlisted in your budget. This will serve as a warning whenever you overshoot your budget. Don’t give in to the demands of your family midway.

Each member should be absolutely clear about the items and equipment to be installed from the very beginning.

Have a Contingency Fund

An emergency fund of approximately fifteen to twenty percent of your estimated budget should see you through the renovation without any major debacle. This fund will help you to indulge in small extravagances without feeling guilty about it.

Working within an extremely tight budget can become depressing and most people actually give in midway, thereby leading to cost escalation. Spending a little more while staying within a budget is better than going overboard out of frustration.