Beginning your renovation project and planning the interior design for your home can be so exciting! But the costs can seem outrageous or more than you bargained for. Plus renovating is more than just the costs associated. It can be stressful, headache provoking and just make you want to pull your hair out. Today I want to be the one to give you all the information you need BEFORE you start a renovation project and why you should take the time to prep.

 Let's set the stage:

If you’ve bought a house and it was one of the more reasonably or lower priced on the market, and it just need a few things to fix it up. That house probably had very old carpet, dated popcorn ceilings, wallpaper (not the peel & stick kind) and a few cosmetic repairs that needed to be done. You thought, “No problem! That can’t be too expensive! Plus we got such a good deal! We can just use the amount we saved buying this house to fix it up!”

Or you currently own a home (because if you rent, most renters do not have a say in renovations they want to do) and want to update a few things.

You called a contractor to help you every step of the way. And let’s just say the bill you got at the end… WOW! We went WAAAYYY over the budget we had in mind!

Let me be the first to tell you, you are not alone or the first one to be surprised.

Here Are The Stats:

79% of homeowners said that they did not consider a budget in mind when planning their project out, but nearly 50% go over budget. Or those homeowners end up pausing or canceling the project because they can no longer afford to continue. I believe that is because most homeowners do not know all of the costs involved (including costs of labor) or issues that could potentially arise once the project begins. Plus labor costs from contractor to contractor can vary.

It seems more homeowners are renovating their homes vs going out and purchasing a new home. Plus people more than likely want their home to look and feel like theirs. On Zippia, they had an article from this year showing the home improvement increases in the last few years. They explained “on average, homeowners completed one or more home improvement projects in 2021 than they did in 2020.” The average they found was 3.7 projects in 2021. Each one costing $2,800 on average. That’s over $10k on projects in one year and it seems that percentage is increasing. Just to put in perspective, 23.7% of U.S. households completed a kitchen remodel which is usually about $20k + in total costs.

Houzz also showed 55% of homeowners decided to do a home renovation project which is up from 2018. The other half decorating their homes. Decorating includes buying furniture, accessories like throws, pillows, shelf decor, etc., textiles, curtains, plants, rugs, and art.

Reasons Why The Project Went OVER Budget:

Depending on the renovation project, there could be a factor of reasons why your project went over budget compared to your neighbor down the street who had the same things done. But here are my top reasons:

• Communication

  • This is HUGE. I think we can all agree when it comes to communication, we can all work on this. Especially since texting became the quickest easiest way to contact someone. But have you ever had a text come across differently than you expected? Or even a meeting that did not go the direction you had envisioned? Also, who really loves talking about money?? Segue into my next point…

• Unrealistic Budget in Mind

  • First off, I know most people when you first go over a project with them have a number in mind. They may not share that with you at first, but they do have an idea or range because they know their budget. Unfortunately, the contractor does not. So how do we get this budget to be more realistic?

  • We all want to save money. I get it. A good rule of thumb, is to first discuss with the contractor or designer what they think the project would cost if you got everything you wanted and then telling them this is where you were thinking. See if you can work out a deal. And maybe you can do half the project this year and half the next year kind of thing.

  • Also, keep in mind, you should consider adding 20% over the designer and/or contractor’s proposal for the project. This will leave room for the unforeseen. Keep reading to find out more about the unforeseen.

• Material Costs Went Up

  • Let’s face it, costs of groceries and clothing is always changing it seems. So why wouldn’t costs of building materials change?

• Change Orders

  • A change order is when homeowners decide to change something as the project begins. A couple examples: the doors you ordered weren’t what you thought or the paint color is all wrong but they already painted every room.

  • Since every home is custom, these costs will basically double. Most places won’t return items like doors, windows, installed flooring, etc. And if labor was already done, you won’t be able to take that back if you decide to paint every room a different color. Same with some furniture or fixtures have “restocking fees”. This adds up.

  • Not to say you cannot have any change orders done, but there is a way to prevent more of them from happening.

• DIY

  • Yes, DIY is a great way to save money. And it is tempting to say you think you can tackle a project. If you have experience in remodels or renovation, then have at it! But keep in mind some contractors won’t work with a project that is half done and they finish it. This is because: what if you did something incorrectly and it would jeopardize the work the contractor is going to do. They don’t want to put their name on that if it were ever to fail in the future.

  • DIY projects most anyone can tackle: painting, small repairs, updating hardware like cabinet pulls and replacing light switch covers.

• Issues Will Always Come Up

  • This one’s the kicker… Issues will ALWAYS come up. I will say it again. Issues will ALWAYS come up!

The “Unforeseen”:

Before even considering renovating your home, you should consider all costs involved and then some.

It's called the "unforeseen".

Most home projects whether you are constructing a new build or remodeling an existing home will almost ALWAYS have challenges that come up during the project where the owner will end up spending zero, hundreds or thousands more depending on what comes up. Remember every project is different. Sometimes you will find out the wiring in your house needs redone after you tear down the sheetrock or there was mold found after demolishing your bathroom. It really all depends. But that is why it is important to understand unforeseen things will come up.

This should not deter you, though, if you are considering tackling a renovation project! :)

If you hired a good team to work with on this project, that means they will be doing their very best for you, and the end result will make you a very happy and pleased homeowner. It might even create more value within your home!

Now Hiring Someone to Manage The Project:

Hiring someone to organize your thoughts and dreams to make sure the project works in your favor, is the best option as long as it is within your budget. Most people that start thinking of a project have a number in mind for how much they believe the entire project will be all-in-all. As we discussed earlier. But how do you pick from the pool of independent contractors in your area?

• Now, most every professional I have met in this industry has a common interest to make a customer happy while making a living and not losing on a project. This view to the customer could be something completely different. And by that I mean if something comes up in the "unforeseen" category… the customer may fire that contractor just because they didn’t know this could come up during the process. That is why it is important to have these conversations upfront when you initially meet with your contractor prior to hiring.

• Every contractor is different based on the work that they do and how fast you want this project done. In my experience if you have a project to be done right, you are paying for that value. But if you want it done fast, they may charge even more and that might not mean that it is done right. There are also other contractors that will charge their labor and cut costs in less quality material just to meet your budget.

• Also, it is a good idea to hire a contractor/designer that has similar values as you. They can be your “right hand man” while you are at work and you can trust that the job is going to be done up to or more than your standards. I believe hiring someone to organize your thoughts and dreams to make sure the project works in your favor, is the best option.

• My last bit of advice would be to meet with several, ask about projects they have done in the last 5+ years and how they look today, ask for estimates of the project and REMEMBER you are hiring them.

I believe hiring someone to organize your thoughts and dreams to make sure the project works in your favor, is the best option.

Write below in the comments! I would love to hear from you guys your renovation project journey and the lessons learned along the way. Let’s make this a space we can share ideas and our experiences.

Happy styling! :)