Want to save money on a renovation? Many homeowners end up overspending and exceeding their budgets simply because they underestimate home renovation costs. Fortunately, with the right planning and budgeting know-how, it is possible to cut down on costs when renovating a property without compromising the quality. From prioritizing home projects and working in phases to repurposing used materials and seeking multiple bids, here are 11 ways you can save money on a renovation.
11 ways to save money on a renovation
-
Know your budget
Before renovations begin, figure out how much money you are able and willing to spend on individual projects and on the renovation as a whole. Take a look at your personal savings and financing options. In addition, we recommend researching cost estimates for renovation projects. This should give you a rough idea of how much everything will cost, so that you can budget accordingly. For the latest renovation cost estimates, check out Remodeling’s 2019 Cost vs. Value report.
-
Prioritize renovations that add value
While perusing Remodeling’s Cost vs. Value Report, pay close attention to the renovation projects that get homeowners the most bang for their buck – especially if you plan to list your home in the future. Focusing on changes that add value to the home will increase your chances of getting your money back (and then some) when you decide to sell the property. Several renovations that tend to get the biggest return include a wood deck addition, kitchen and bathroom remodels, siding and vinyl window replacements, and an upscale garage door replacement. For more information about the most valuable home improvements, check here.
-
Seek bids from multiple contractors
Renovating the entire home? You’ll likely need a general contractor to handle and coordinate all of the individual projects throughout the property. While general contractors tend to be quite expensive, many homeowners will tell you that they are well worth the money. In addition to overseeing the entire renovation, general contractors help homeowners make budget-conscious decisions when it comes to improvement projects. To find the best value, we recommend interviewing and seeking bids from at least three different contractors. For tips on how to find a contractor, check here.
-
Be your own contractor
Think you have what it takes to coordinate your own home renovation? One of the best ways to save money is by being your own general contractor. That means finding and coordinating all subcontractors yourself. According to Angie’s List, general contractors typically cost anywhere from 10 to 20 percent of the total cost of the job. By acting as your own contractor, you will save thousands of dollars on your home renovation.
-
Do as much of it yourself as possible
If you fancy yourself a handy guy or gal, we suggest doing parts of the renovation yourself. This is the best, surefire way to save money on a renovation. Examples of home renovation projects that you may be able to do yourself include painting the interior, installing shelving and closets, installing wallpaper, painting tiles, installing kitchen backsplash, and demolition of walls. Of course, some parts of the renovation process are best left to the professionals. If you need to make plumbing or electrical changes, we recommend consulting with the pros.
-
Find used renovation material
Not everything needs to be brand spanking new. A great way to save money on a renovation is by seeking out gently used materials and finishes to use throughout the home. This could mean using leftover slabs (also known as remnants) of stone (i.e. quartz, marble, granite, etc) for countertops or flooring. Oftentimes, you can also find used vanities and appliances for sale on local online marketplaces. Amazon Warehouse is another great online marketplace for used items. Shoppers may be able to find great deals on quality pre-owned door knobs, cabinets, doors and more.
-
Wait to purchase home items during big sales
From backsplash and tile to appliances and furniture, the price of new home items quickly adds up. If you opt to purchase new materials over pre-owned ones, try to buy them during big holiday sales when prices are lowest. These big sales typically happen during Black Friday, Cyber Monday, Labor Day, Memorial Day, July Fourth, Christmas and New Year’s. You can also sign up for price alerts such as Google Shopping’s new price tracking optionto keep up-to-date with the latest deals on items you’ve been eyeing.
-
Don’t do everything at once
If you want to save money on a renovation do not attempt all changes at once. Instead, we recommend living in the home first to see what it is you really need and want to change. Chances are good that over time you’ll learn to live with some of the home materials and finishes you once couldn’t stand. Even if you do decide to go through with all of the planned renovations, doing so in separate phases will allow you to save up for each project.
-
Sell the home’s old materials to purchase new one
You know what they say: one man’s trash is another man’s treasure. Before tossing the home’s old light fixtures, old doors and other home items, try selling them through an online marketplace. While those old doorknobs may not be your style, they could be someone else’s. To sell used items try posting them on Facebook Marketplace, Nextdoor.com, OfferUp and LetGo. You might be surprised how many responses you receive.
-
Consider using a home equity line of credit to pay for renovations
Can’t pay for your renovations with cash? Consider using a home equity line of credit (also known as a HELOC) instead of taking out a conventional loan. A home equity line of credit is a loan that you borrow against the equity in your house. The reason this will save you money is because a home equity line of credit typically has lower interest rates than a conventional loan. This will save you from having to make large payments on high interest loans. For more information about a HELOC, check here.
-
Purchase floor model appliances
It’s no secret that appliances can be quite expensive – especially if you plan to outfit your home in high end items such as a Sub-Zero refrigerator and a Wolf oven. Fortunately, there are ways to score major deals on home appliances that don’t involve shopping during the Black Friday madness. One such way is by purchasing a floor model instead of a brand new appliance. Many floor model appliances still come with a manufacturer’s warranty. According to Appliance Buyer’s Guide, buyers can expect to score between 5 and 15 percent off original prices when purchasing floor model appliances.
Source: Moving.com
