Whether you are renovating to make your space more comfortable, to increase your home's value, or just trying the style you always wanted from Pinterest, one of the biggest obstacles you can face when updating your home is staying within your budget.
Budgeting for any remodeling project can be challenging. In fact, in the 2021–2022 study by Houzz, 34 percent of homeowners exceeded their budget, and they did so for a variety of reasons. The top two reasons they cited include:
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Finding that the products or services were more costly than expected
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The project was more complex than anticipated
Want to avoid these mistakes made by homeowners? We have listed these four expert tips to help keep your project as close to budget as possible.
1. Hire Professionals Where It Matters
It can be tempting to do the legwork yourself so you can save money—especially if you know you have got enough time on your hands. However, the DIY route may not be cheaper than you thought it would be.
Your lack of know-how can be costly, and you could spend more on a botched job. Especially for plumbing, electrical, or structural work, it will be safer and cheaper to pay a licensed and experienced professional to do the job right.
Also, trust that professionals know the best brands to work with and can achieve the look you are aiming for while still getting the most bang for your buck.
2. Prep the Space to Save on Labor Costs
But while it is better to leave the job to the pros, there are some things you can do to prepare your space before a crew comes—especially if you are paying them per hour.
Depending on the remodel, you can:
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Tidy up the area and clean surfaces
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Pack up and move furniture and other decor out of the construction zone
These small tasks can make their job go more smoothly and quickly, saving you money in the long run.
3. Work with a General Contractor and Get Multiple Quotes
Experts recommend hiring a general contractor for medium- to large-scale remodeling projects. A general contractor:
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Knows who will do the best work for the best price
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Understands when to schedule workers to avoid time and money waste
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Ensures quality of work and materials remains consistent
To get the best deal, obtain bids from at least three different traders. While it's not unusual for their quotes to differ, this is an excellent opportunity to:
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Learn their good and bad points
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Understand different approaches to the same work
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Spot red flags if a bid is too good to be true
If you decide not to go with a general contractor and instead hire individual workers, get at least three quotes per service so you can compare prices and scope of work.
4. Plan Every Detail and Expect the Unexpected
No matter how big or small the remodeling project is, careful and detailed planning is the best way to avoid expensive problems down the road.
The cost of renovations doesn't just include materials and labor. Also consider:
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Necessary permits
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Sales tax
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Delivery and shipping charges
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Cleaning supplies
Getting a detailed breakdown of costs upfront means you can see how everything adds up. A good contractor will:
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Provide a detailed quote
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Walk you through the entire project
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Help you create a step-by-step plan
This is also the best time to make final decisions about materials and finishes. Once the plan is done, stick to it—last-minute changes are a surefire way to derail your budget.
Even if you’re an optimistic homeowner, plan for the unexpected. According to the Houzz study, one of the biggest reasons homeowners went over budget was unforeseen project complexity.
Once your contractor opens a wall, they might find:
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Necessary electrical updates
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Plumbing or material issues
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Mold or asbestos
This is especially common in older homes. To prepare, it’s best to have a 10–25% contingency buffer in your budget for surprise costs and delays. That extra cash cushion often comes in handy—and gives you peace of mind knowing you’re financially covered for the unexpected.
