The Key to Budgeting for a Home Renovation Project

It is easy to become overwhelmed with any home improvement project especially when it comes to narrowing down and finalizing a budget. Even the most frugal homeowners tend to get caught up in the excitement of it all, from choosing the perfect finishes and fixtures, to getting blindsided by unexpected glitches that pop up along the way. It happens to us all.

It is common to not budget enough when it comes to planning for a home renovation project. Figuring out just how much you should allocate to any home project can get tricky.

Here are some general rules of thumb to think about when budgeting for a home renovation project:

1. Know how you are financing this project. You need to first determine how you plan to finance this project. Whether you are paying in cash, taking out a loan or applying credit your budget will need to fit within your fund’s limits. Once you determine this be sure to set aside about 10-20 percent of your available funds for unexpected costs.
2. Make sure to prioritize your needs over wants. Making a list outlining your needs versus wants can help you stay on track and within budget throughout your renovation project.
3. Create a detailed plan including cost estimates. In order to create a detailed plan outlining the cost of this project you need to get proper estimates from your builder. At Penn Construction and Design once we have an understanding of your home renovation goals, we then create custom plans tailored to your wants, needs, and home’s potential. In our design-build model, we can provide an accurate expectation of cost upfront.

Home renovations can be all-consuming projects, but we hope these tips help you with step one in the process, budgeting. At Penn Construction and Design, we are here to make sure your next home renovation journey runs as smooth as possible from the start.

At Penn Construction & Design, we combine licensed Realtor knowledge with custom design and craftsmanship to deliver exceptional client satisfaction. If you want to discuss how you can add value to your home, call or contact Penn Construction & Design for a consultation at (484) 453-5071.