How to Determine Your Home Improvement Project Budget

How to Determine Your Home Improvement Project Budget

Homeowners in the DMV are expected to spend less money on home remodeling projects this year making it even more important to set a budget and pick the right project for the best return on your investment.

According to a new report from Harvard University’s Joint Center for Housing Studies, the pace of spending on home remodels has slowed. In the DMV area the annual growth of pending has dipped from 6 percent in 2017 to 2 percent in 2019.

That means homeowners are making sure they not only pick the right home renovation project, they are making sure they make and stick to a budget to keep their project costs from ballooning.

Check out this checklist of things to ask yourself when deciding on a home improvement project:

  1. Will this project add more space to my home?
  2. Will this project upgrade some of the builder-grade or non-functioning products in my home like fixtures, kitchen cabinets and appliances?
  3. Will this project create a better flow to the home’s floorplan to better match your lifestyle?
  4. Will this project increase the resale value of your home or is it too customized that it might be a deterrent to prospective homebuyers?
  5. Will the project improve my home’s energy efficiency?

Once you have prioritized your needs you are next ready to build a budget to get your project done.

How to Stay on Top of Your Home Renovation Budget

  1. Be a copy cat: After you have decided which project you are going to tackle pour over magazines and websites dedicated to that project. Visit open houses or scope out a neighbors’ ideas. The better job you do of envisioning and explaining your vision the better prepared you will be to make the right decisions along the way.
  2. Prioritize your project: Write down a list of things you absolutely must have in your project and those you are willing to splurge or compromise on.
  3.  Create a spreadsheet: It’s tempting to want to just jump right in on an exciting renovation, but taking the time to build out a spreadsheet will help you be realistic about the total cost of the project. Make sure you don’t leave things out such as- renovation costs that require you to move out for some time; projects that will have you eating out because your kitchen is under renovation or shipping and taxes on items that add up.
  4. Factor in labor: Depending on the job, labor can account for up to 35 percent of a project’s cost. If this isn’t a job you can tackle yourself, remember to add in costs for professionals. If you plan on doing your own renovation, remember to factor in days off work or tools and other materials you don’t already have on-hand.
  5. Shop around: With your estimated budget in hand, get an estimate from qualified, insured and licensed contractors. Read the reviews on those companies from sites like Angie’s List, HomeAdvisor and Yelp. Many times the least expensive estimate is not the best one. Some companies may lowball a job to earn the work. Be wary of estimates that seem far out of line with what other contractors are charging.
  6. Make sure you get a warranty: Professional contractors will offer a solid warranty that covers their product and their work. Make sure you read the fine print. Not every warranty is as comprehensive as they appear.

Budgeting for Home Renovations

When your renovation project includes upgrading your home’s siding or gutter system, installing replacement windows and doors or protecting your home with a new roofing system, Thompson Creek has the professionals to help maximize your budget and give you the satisfaction in knowing your job is done right. We back our work with our No Hassle Warranties designed to safeguard your investment for up to 50 years after installation.

Home renovation projects can be a great way to better enjoy the home you are in. Thompson Creek’s renovation projects enable you to relax during the renovation process too. Call us today for a free in-home estimate.