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✓ Cutting back costs in a home renovation project is what almost every homeowner wishes for. Any construction can get expensive, especially at this time of inflation. Even worse, it’s much harder to take out a loan nowadays than before the housing bubble burst.
✓ The excellent news is that there are ways to save money on construction projects. You don’t have to learn them the hard way because we got you covered! Among the many tips, the following money-saving hacks are what you must do before you break ground.
Update Existing Policy Before Renovating
✓ Contact your home insurance provider (preferably before construction, not necessarily until policy renewal) to see if you qualify for rate reductions. Specifically, home improvements that can make your home safer and limit claims frequency may result in homeowners insurance savings, such as:
- Roof replacement
- Security system installment
- Home systems upgrade to innovative home technology
- Water shut-off valves automation
- Wind or hail-resistant upgrades
- Sump pump installment
- Solar panels installment
- Be LEED (Leadership in Energy and Environmental Design) certified
✓ However, not all home improvement can help you save money. Others will only increase your home’s replacement cost. These include additions for entertainment and aesthetic purposes, such as a pool, diving board, fireplace or chimney, fountain, shed or other detached structure, wet bar, or even pet. Adding or renovating rooms may raise your rates as well.
✓ A higher replacement cost usually results in higher policy premiums. However, despite that, you should still inform your insurer of any additions or renovations to your home to ensure it’s fully covered.
✓ If you’re still planning to renovate your home but aren’t insured, purchase home insurance first. Consider checking an online homeowners insurance comparison for convenience. Opt for providers that offer credit for home improvements with lower home insurance premiums.
Make and Stick To a Budget
✓ Budget renovation isn’t synonymous with cheap. Instead, it means you have a good idea of how much your total funds are allotted for a purchase.
It’s recommended to start with a dollar amount before making design choices. Then price materials and fixtures and start grasping which works with your budget and which won’t.
✓ For example, create a spreadsheet and add everything you want to buy. Then, make calls to get quotes for materials and labor. Add their costs, including tax, to the budget sheet.
If areas are eating up a lot of your budget, adjust them by opting for cheaper materials or cutting them out altogether.
✓ Allocate for unexpected expenses too. Many suggest sparing 10%, but it’s entirely up to you. What matters the most is sticking to your budget.
Pay Cash As Much As Possible
✓ While it’s easier said than done, paying for your home renovation project in cash will save you much more money than you’ll spend on purchasing things via credit card or a loan.
If you seek financing, you’ll end up paying interest and other loan fees that you may be unable to pay immediately.
✓ Instead of quickly jumping into taking a home loan out to fund your home improvement, think it through. If you can’t afford it now, consider looking for other ways to cut your current spending and adjust your budget to save more money for your home project.
If you genuinely wish to save money, save up first rather than borrow, adding more costs.
Do-It-Yourself (DIY)
✓ Doing home remodels, renovations, and repairs yourself can save you thousands of dollars. For example, asking a professional to install your roof costs around $5,000 to $10,000 on average, while doing it yourself only costs you $2,500 to $5,000.
That’s already around 50% savings! However, only DIY if you can. Otherwise, you’ll spend more on having a professional fix your mistakes.
✓ Consider hauling your own construction or remodeling materials as well. If you don’t own a vehicle or your car isn’t big enough, consider renting a trailer to save on delivery costs.
Many home improvement stores rent trucks for you to fill up and haul materials. With this, you’ll likely pay twice: one for the truck rental and another for the store’s service.
Buy Materials At Construction Sites
✓ Take advantage of the materials often wasted at construction sites. Talk with the general contractor or anyone permitting you to go dumpster diving.
✓ Sometimes, they give free boxes of caulk, wiring, nails, insulation, light fixtures, wood scraps, and even doors! They usually pay when hauling their construction debris off, so they welcome anyone who wants to take a load off their hands.
Final Thoughts
✓ The key to saving money on a home renovation is considering all costs at every project step. It’s also important to note that the cheapest options aren’t always the best. Lastly, don’t keep your home’s resale value in mind.
✓ While saving money is great, a home renovation project is an investment. Sometimes, spending more now can help you save and earn a lot in the future. If you’re unsure what to do, asking a professional is always advised.
