6 Ways to Stay on Budget When Building or Remodeling a House
One of the first questions a new client asks is “How much will this cost me?” Yet the answer isn’t always clear cut. When it comes to home construction, not only do we face the “unforeseen” — those situations we didn’t plan for when we started the project (e.g. wood damaged by a hidden insect problem) — but the plan often changes during the process because, for example, the clients decide they prefer a higher end product over the mid-range one we initially discussed. But there are some ways to stay close to your budget by factoring the realities of home construction into the plan.
Have a plan! Seems simple enough, but yet often construction starts with many of the decisions deferred until later in the process. Make the decisions up-front, and you’ll stick closer to the established budget.
Include contingency in your plan. Become some costs are unforeseen, it’s better to plan for extra costs, just in case. If you don’t need it, it means you come in under budget. Bonus!
Skip making changes — unless they lower the expense. Changes in materials or adding more work to the project costs more money, and can add up rather quickly. Often the thought is “we might as well add this on…” because “this” may only cost a few hundred, but adding little items to the project adds up quickly. Stick to the plan.
Identify all costs you plan to incur. Keep in mind a construction plan not only includes the cost of building or renovating the home, but also decorating, landscaping, moving costs, temporary housing and a host of other misc. costs you can incur when remodeling or building.
Don’t sweat the small stuff. Sometimes the perfectionist in us comes out, and we focus too much on small details, adding extra costs and energy to the project. But in the big picture, consider if it really matters. Often it doesn’t, and you’ll be just as happy or less likely to think about it in the long term.
Keep the lines of communication open with your contractor. The more the contractor knows about your priorities, and budget limitations, the more the contractor can help you make and stick to a plan.
Overall, keep this in mind: The more specific you are in planning, the tighter your budget remains.