Home additions can take a major chunk out of your finances often requiring a personal loan or a second mortgage. From there, costs can spiral even further out of control – but they don’t have to. We have the secret weapon for managing home addition costs and when used correctly it can shave thousands off of what you would typically spend.
This ingenious tool for managing your costs for home additions and keeping them at a manageable level has been divided into five stages. Each one builds on the previous and you end up with home remodeling costs that are under control and manageable. So take some time to review our system and then integrate it into your own home projects. You will be amazed at the money you will save.
Stage 1: Set your budget.
Unless you have unlimited funds, every project you start must begin with a budget. Break down your materials costs, equipment costs, and costs for any specialty work like plumbing and electrical that must be done. Make your remodel budget realistic so that you won’t be tempted to “fudge just a little” and go over. Get your figures together and carve them in stone. The only way you are going to maintain control over your home remodel costs is to maintain control over your budget.
Make sure that you include every little thing in it so that you don’t have to go off the budget to pick up last minute items or so called minor things that you didn’t see fit to include. Those minor things can nickel and dime you right into a personal loan – and debt for years to come.
Stage 2: Add some cushion.
Once your budget is squared away and you have everything included, add some cushion to it. You never know when some remodel emergency will arise and you will have some expense that you hadn’t planned for. This category will not be associated with any particular phase or element of the project but it will ensure that the funds will be there if you need them.
Adding this little cushion will prevent you from having to take out a line of credit to complete the project. When you are doing a home addition, cash is always best. You want to charge as little as possible and you definitely don’t want to take out a loan or a second mortgage.
Stage 3: Set your timeframe.
You may be tempted to set your timeframe during a vacation or a specific time of year – and that is fine. However, don’t lock yourself into a certain time until you have the materials you need. That is where a lot of planning comes in. You will throw away a lot of money if you wake up one morning and decide to redo your kitchen.
It is a much smarter move to research your options and find materials that are on sale. Once you have purchased the items as a discounted rate then you can decide when you want to start the project. By planning your project instead of careening headlong into it without any thought or plan strategy in place you will be left paying far more than you would if you just waited a little and watched the sales.
Stage 4: Make the most of what is already there.
It costs a lot more to move a bathroom across the house than it does to extend the plumbing a few feet. Try to use whatever wiring and plumbing is already in place. If you want to renovate load bearing walls, try to update them instead of moving them or replacing them. When you have to break it all down and start over you run into a lot of expense. You will save a ton just by using what is already in place and making it better.
Stage 5: Do as much as you can yourself.
Do contractors cost a lot of money? You bet they do. Are they necessary? In some cases, absolutely. Do your own home addition – or as much as you can on your own and only call in the contractor for the things you can’t do. Now if you are not an electrician then you naturally want to call one in to do your electrical work. For the most part though, just about anyone can lay a floor and paint walls. It really isn’t that too difficult to hang cabinets either. Will you have to be patient? Sure you will – just think of it as a personal growth exercise. Will it be worth it? In more ways than simply the cost. Try it and see for yourself.