Six Ways To Blow Your Remodeling Budget

Clark Construction shares some of the most common spending mistakes and some helpful tips to keep your home from becoming a money pit. Before you launch your next undertaking, learn how easy it is to keep your costs in line by planning ahead and working with your design team to optimize your budget.

Mistake 1. Not having a budget

Home improvement projects always start with the best intentions and many times end up draining your pocketbook and peace of mind, unless you have a budget and keep an eagle eye on it.

It's essential to have a budget, and stick to it. Most of us get easily sucked into "while you are at its", which can greatly increase your overall investment.

No matter what the size of your project, keep up with costs as you go. Don’t wait till the end for a drum-rolling "grand total" — it will undoubtedly be greater than you ever imagined.

Mistake 2. Doing the wrong project

This can be a doozy. This may mean building "out" when you could have built "up", or adding on when you could have gained enough space within your existing four walls. Sometimes it may even be doing the "wrong" project first, causing you to have to redo the same space again.

Mistake 3. Right project wrong time.

We often see a last minute splurge before selling. Clients decide to put their house on the market, but want to do extensive work before the sign goes in the front yard, like a new kitchen, new baths, new flooring, new windows and siding, etc.

Two points here. First, if you plan to sell down the road, do the improvements well ahead so that you can enjoy them while you still have a good amount of time in the house.

Secondly, if you invest too much $ in your house at the last minute, you won't recoup it, and it will cut into the money you probably would prefer to spend on your new home.

Your best bet is to keep the kitchen and bathrooms up to date — these are key selling points that buyers will be picking apart down the road. Replacement windows and siding also will make your home stand out from the crowd when you go to sell.

You can spruce up your curb appeal at the last minute with a freshly painted front door and colorful plants to greet potential buyers. After all, this is the first and last part of your home that they will see.

Mistake 4. Poor choice of contractor may result in extra costs

Extra costs can result if contract specifications are inadequate or the project is improperly specified. One way contractors have earned a bad reputation is by giving you a low price for the project, but not including everything you really need - and then putting those things on a change order once work has begun.

Often times you end up paying more than you would have if you included everything up front. This approach is dishonest but unfortunately is all to common; avoid these types of contractors at all costs. Beware of the low bid, take time to understand the differences between them, ensuring that the scope of work includes everything that you need and expect for your project.

Mistake 5. Going top end on everything

Beware of the tendency to "keep up with the Joneses" or to wish for everything you see on "Houzz".

Your design team can help you value engineer your project, so that there is a nice balance between scrimping and splurging. They'll probably suggest splurging on your rooms' focal point.  They can probably even find something that looks similar to those $40 per sq ft backsplash tiles that you have fallen in love with.

With a little creativity and hard work on the part of your design team, you can have beautiful, customized looks that will make your home the envy of the neighborhood, without killing your budget.

Mistake 6. Making changes during construction

Timing Matters. It often costs more to make changes midstream. Oftentimes changes in the middle of a project require re-work, ordering of new material, the slowing down of the next phase, bringing back other workers, or having to re-do previously completed work. All of these translate into higher costs for your contractor which will in turn be an added cost to you.

Try to make any changes as early as possible (ideally before the project starts!) to minimize the additional cost of changing things midstream. It will be less costly if you decide sooner rather than later.

By partnering together with your contractor and design team, you can make smart decisions during the design phase that will control the magnitude of your remodeling budget while optimizing the scope of work to your needs and desires.

Keeping your own particular appetite for add-ons and changes on the fly under control will help you manage the number and dollar volume of change orders throughout your project.

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