If your home isn't exactly your dream home, a renovation project may be just what you need! When planning a custom home renovation, your first step should always be to work out your budget for the project. This way, you and your renovation contractor will have a starting point to work from in terms of cost. Here are some things to consider when you are working out your budget. Contact us to learn more about a custom home renovation.
For starters, it helps to have a general sense of what your project will cost. Then you can start building your budget around that estimate. For example, a typical bathroom renovation will likely cost between $10,000 and $25,000, depending on the extent of the renovations and the fixtures and other design features you choose.
Once you have your starting-off point, you can start to think about the details and how much they will cost. Be realistic about what you need versus what you want. Once you have established a budget for the core renovations, you can start working in extras, like premium flooring, fixtures and more.
It is always smart to leave a bit of extra room in your budget to allow for any complications that arise during the project. You may also wish to make changes to your original plan as your custom home renovation progresses, so it will help to have extra money available. In general, 10% of the total cost is a safe estimate for your funding cushion, though feel free to include more if you can afford it.
You'll also have to think about how you will pay for your custom home renovation. Paying cash is a smart option if you have the money available in your savings. You can also take out a construction loan or personal loan to spread out the costs over time. If you plan to obtain financing for your project, be sure to incorporate the loan origination costs, fees and ongoing interest into your budget, as these items can increase your total costs substantially.
Depending on the renovations you are making, you may be eligible for grants or rebates from the government. This is often the case if you are adding energy-efficient features to your home. Be sure to do your research to uncover any special funding you might qualify for. Your builder may also offer discounts if you pay your bill in full upfront or if you use a particular payment method. Ask your builder about any possible discounts during your initial consultation so that you can factor them into your budget.
Developing a budget for your custom home renovation isn't always easy, and our team is here to help. We will gladly work with you to work out the details before we get started on your renovation project so you know exactly what to expect in terms of cost. Get in touch with us today to get started.