Budgeting for a Whole House Remodel

Budgeting for a Whole House Remodel
Monday, December 24, 2018

Recently, we've written on exploring the cost of a bathroom remodel and the cost to remodel a kitchen. But what if your plans are grander, or your needs greater, than a single-room remodel? How do you go about budgeting for the remodeling of your entire home? You start by thinking carefully, but not overthinking. The difference isn’t one of kind, but of scale; the fundamentals remain the same, and paying attention to them will help you keep home remodeling costs in line.

Know Your Budget

This is the foundation of your Arizona home remodeling project. You should begin by knowing how much money you have for this project. You should also know where the money is coming from, and remember to account for the fees and interest that go with it. Unless you’ve saved for years, even money costs money!

Account for Hidden Costs

The costs of materials and labor won’t be the only ones your home remodeling project incurs. A whole-home remodel can often go best when you’re out of your home for the worst of it, so finding lodging for a short period of time is a good idea — but also costs money. Permits and inspections cost money, as well. Make sure you’re accounting for these incidentals.

Plan a Cushion

Just because you’ve set a number you can live with, you’re not out of the woods yet. Project changes and unanticipated structural problems can lead to cost overruns. If you’ve failed to plan for this, you may find yourself scaling back your project or settling for materials and fixtures that weren’t your first choices. We’ve never heard a homeowner complain about having money left over when all was said and done.

Determine the Scope of Your Project

You may decide early on that your home has good bones and would simply benefit from new windows, better insulation, new drywall, and refreshed cabinetry and appliances. Conversely, you may want to add a room or two, raise the roof, and finish your basement. Adding square footage is much more expensive than working within your home’s existing footprint and structure, but many homeowners — especially those with growing families — find the results justify the time and money spent.

Check Your Math

You can estimate costs for many parts of a home remodel, and a bit of back-of-the-envelope math can help to see if you’re on track. There are some intangibles involved here, especially since a home remodeling contractor will be buying wholesale and can identify areas of potential savings. However, your general contractor is also likely to identify some things you’ve left out of your calculations. Your initial remodeling consultation will help you check and double-check your math.

Talk to Your Remodeling Contractor

Checking your budget isn’t the only reason to speak to a contractor. Nor are those the only questions to ask a general contractor, nor should they be the only folks you speak to. There are tax implications to home renovation, including deductions for certain improvements and a possible tax impact due to the size and kind of remodel. There are also opportunities to get local, state, and federal rebates for energy-efficient roofing, HVAC, and more. Perhaps most importantly, your contractor will help you identify choices of materials, fixtures, and appliances that can help you stick to your budget.

If you’re in the planning stages of a home remodel — whether it’s a single room or your whole house — contact ArDan Construction for a remodeling design consultation today!