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How to Create a Renovation Budget

 

You have decided that you are done staring at the same living room, kitchen, or bathroom and now is the time to do that remodeling project. The two primary considerations when it comes to planning any renovation project are time and money. For example, if your bathroom remodeling project will take more than a couple of days, then you are going to have to make some sort of arrangement if your home has only one bathroom.

Creating a budget for your renovation is extremely important because if you don’t plan the budget properly, your project could be left undone because you ran out of funds. There are a few steps you can take towards estimating your remodeling budget and determining just how you will pay for your project.

Establish The General Scope Of Your Project

The first step is to get a pad of paper and a pen and make a list of everything you want to do. For example, if you are remodeling your main bathroom then stand in your bathroom and start making a list of the changes you want to make. You should list every change you have ever wanted to make, no matter how much you think it may cost.

Prioritize The List

Go through your remodeling list and mark the changes that you must have, and then mark the changes that would be nice but not so essential. This will give you a perfect project guide for your contractor. Your contractor can bid out the essential items and then do an item-by-item bid for the non-essential parts. You might be surprised at how much you can actually afford.

Get Quotes From At Least Three Contractors

You should never get a quote from just one contractor, even if that contractor is a close friend of yours. After all, you will be spending your real money on this project and you want to get the very best value. Be sure that every contractor gives you an detailed outline of their quote and separates the non-essential items from the essential.

Create Your Final Budget

After evaluating your bids, you will bring the entire process down to one contractor. You can use that contractor’s itemized bid to put together the exact project that you want. You can then add up all of the costs the contractor gave you for a final budget number. To be safe, you should add 20 percent to your final number to account for any expenses or issues you did not plan on.

Get Financing

Many contractors are offering financing through different lenders and that is something you should investigate when you go to get financing for your project. But just as you needed to talk to multiple contractors to get a good quote, you should also explore at least three funding options to find the best deal.

If you do not do your homework on your remodeling project, then you could wind up paying more than you should. Never accept a proposal from a contractor that does not offer some sort of warranty, and never accept a proposal from a contractor that demands a deposit be paid before work can begin.

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