Real Estate Tips |7 min read

Doing a Home Remodel on a Budget: 14 Economical Tips

Doing a home remodel is stressful, no matter what. You have to shell out thousands of dollars and heaps of valuable time and energy. There are countless decisions that you must make in terms of logistics, finances, and more. It can all seem so overwhelming and out of control.

However, you can take steps to make the process less nerve-racking. When you’re armed with a settled budget and cost-cutting measures, you can be better prepared for the house renovation process.

Key Takeaways from this Article: 

  • Home Remodeling Stress: Remodeling a home is inherently stressful due to the significant financial investment, time commitment, and the multitude of decisions required. Unforeseen issues can add to the pressure, making the process overwhelming.
  • Budgeting and Preparation: Creating a detailed budget is essential before starting any remodeling project. Allocating funds for unexpected surprises, prioritizing tasks, and considering loan options can help mitigate financial strain and ensure smoother progress.
  • Cost-Saving Strategies: Utilizing cost-cutting measures such as DIY where feasible, seeking deals on materials and appliances, exploring secondhand options, and organizing the workspace efficiently can make the renovation more affordable and manageable.

1. Create Your Budget

You can’t go into your remodeling journey without a game plan. All the money in the world cannot make up for disorganization, so you must know exactly how you are going to make your vision a reality. Here are some key tips from trusted hard money lenders in Maryland.

Look over your bank account to map out the amount you can devote to your house renovation. If necessary, save up for the next few months before you begin the project.

Now is the time to pinpoint which repairs your project will include, what supplies you’ll need, and other aspects of your plans.

2. Budget 20% For Surprises

You inevitably will run into snags in your home remodel process, especially if you have an older home. For instance, if you rip off your walls, you might find outdated electrical wiring. Or, when you pull your dishwasher out, a water leak could have rendered its floor rotten. You never know what surprises await, so it’s always a good idea to stay prepared for them.

3. Make a List of Priorities

Next, research how much each remodeling aspect will cost. Then, decide what to prioritize. For example, if you want to focus on your bathroom, you might incorporate new wall paint, flooring, and a bathtub. However, if a luxury bathtub is more important to you than the flooring, you could funnel more funds toward it.

4. Arrange Your Loan

Because remodeling is so expensive, it can be cost-prohibitive to pay it all upfront, out-of-pocket. So, loans are often a key way people fund their projects.

Hard money loans are one of the best loans you can use for a home remodel. They are designed especially for borrowers who urgently need funding for property projects. Hard money lenders can give borrowers their loans much faster than banks can, sometimes within days.

Also, these loans allow borrowers to put repayments behind them quickly. This means you don’t have to have the loan hanging over your head for as long as a traditional loan would. All in all, these huge advantages can make hard money loans a prime pick for your situation.

5. Contractor Costs

Labor costs can eat up a big portion of your home remodel budget. So, you must decide if and when it would be better to hire a professional or simply do the repairs yourself.

You might have the ability to paint various sections of your home. However, other tasks, like rewiring your electricity or redoing the plumbing, might be better done by professionals.

DIY can help you cut labor costs, but you could also add costs if you botch projects that require specialized training. For example, if you try to do the plumbing and it causes a flood in your home, costs will balloon bigger than they would have if you just hired a plumber to start with.

6. Budget Spreadsheets

Input your house renovation budget and accrued costs onto spreadsheets. This way, you can measure how much you are spending compared to your original plans. So, if you find that your spending has spilled beyond your budget, you can put a stop to it.

7. Stick to Your Budget

Don’t take on extra remodeling projects. Avoid the temptation to stray from your original plans.

If you find yourself dreaming up a whole new project you didn’t factor in before, stop that fantasy in its tracks. This is how budgets get blown.

Remember the remodeling budget you created earlier and keep it in mind throughout the process. You don’t need every single bell and whistle out there. After all, even just a few changes can go a long way.

8. Get Deals from Unexpected Sources

With a home remodel, you may feel pressure to replace everything in the room. However, you actually don’t have to buy new or full-price appliances and supplies. If you sniff out sales and discounts for these items, it can save you countless bucks.

For example, you might be able to buy appliances directly from a warehouse instead of a retail store. Or, if you only have access to stores, you can look at any returned or lightly damaged items that might have a reduced price. Also, you can ask a retail salesperson if they are willing to sell any floor display items. This way, you can earn discounts on appliances on display.

9. Don’t Replace Appliances, When Possible

Replacing appliances can be a cost-prohibitive part of remodeling. So, instead, you may want to consider investing in a home warranty for the appliances you already have.

10. Search for Secondhand Supplies

If you want furniture for your home remodel, you can find lots of bargains secondhand. As one example, you could refinish pre-owned, less-than-gorgeous cabinets just how you want them instead of buying them new.

In addition, others in your area might sell supplies or tools for cheap because they need to get rid of those items. Garage sales, Facebook, Craigslist, Nextdoor, and other sites are popular places local sellers might lurk.

11. Keep Your Space Organized

Even in the best circumstances, remodeling projects can cause disruptions at home. If you make strategies to compensate for these issues, it can help you keep your head above water. This is a critical time to keep your supplies organized or dispose of ones you don’t plan on using anymore.

12. Sell or Donate Supplies

Trash collection services can charge hefty fees when you remove appliances or other big fixtures. However, when you sell or donate these appliances, purchasers can pick them up. This will help you save on disposal costs.

13. Get a Dumpster

Depending on how large-scale your house renovation is, it might be less costly to simply rent a dumpster than to go back and forth to the local dump. Many dumpsters rent at a flat rate with removal built-in. As a bonus, you’ll save cash on fines you could get from leaving behind items that go against policy.

14. Set Up Makeshift Spaces

If your repairs make kitchen or general facility usage difficult, you should set up makeshift solutions in other areas. For instance, you might want to set up a fridge and a microwave. This way, you can make food at home instead of spending money on takeout meals.

Fund Your Home Remodel With MHML

By setting a budget and using clever tricks, you can make a house renovation more affordable. Finally, you can get closer to the home remodel you’ve always wanted.

Better yet, if you want remodeling financing to be even more achievable under tight constraints, our hard money loans can help. We can fill in the gaps while you gather funds for your long-term goals. Even better, we can do this quickly and efficiently so you can get the ball rolling as fast as possible. Contact us today to make your house renovation aspirations come to fruition.

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