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YOUR HOME RENOVATION
You are renovating your home? How exciting! Now is the time to carefully plan, research and create your budget. The high-impact home upgrades can deliver a substantial ROI (Return on Investment) – as long as you carefully manage the cost. ROI is calculated by dividing the net income from an investment by the original cost of the investment.
How to Avoid Going Over Budget in Your Home Renovation
Lessons from Homeowners Who Learned the Hard Way
Renovating a home can be exciting, but it’s easy for costs to spiral out of control if you’re not careful. As a real estate professional, I’ve seen firsthand how simple mistakes can lead to expensive surprises. Here’s how to stay on budget while still achieving the renovation results you want—plus real examples of costly mistakes homeowners have made.
1. Set a Realistic Budget—Then Add a Buffer
Many homeowners set their renovation budget based on best-case scenarios. The reality? Unexpected costs WILL pop up. Whether it’s hidden plumbing issues or delays in material deliveries, adding a 10–20% contingency fund to your budget can save you from financial headaches.
❌ Costly Mistake Example: A homeowner planned to renovate their kitchen for $25,000 but didn’t account for hidden electrical issues behind the walls. After hiring an electrician and bringing everything up to code, they ended up spending an additional $8,000—completely throwing their budget off track.
✅ Smart Move: Get a professional inspection of your home before finalizing your renovation budget. This way, you can anticipate potential structural, electrical, or plumbing surprises.
2. Don’t Over-Customize—Stick to Practical Upgrades
Personalizing your home is great, but going overboard with custom work can drain your budget quickly. Specialty designs, rare materials, and custom-built cabinetry or fixtures can easily cost double what standard options do.
❌ Costly Mistake Example: One homeowner insisted on custom tile work imported from Italy for their bathroom remodel. Between shipping fees, installation costs, and unexpected delays, the final bill exceeded their initial budget by 40%—all for a feature that didn’t significantly increase the home’s value.
✅ Smart Move: Focus on upgrades that balance aesthetics and resale value. Opt for high-quality but readily available materials that give a luxurious look without breaking the bank.
3. Choose the Right Contractor—Not Just the Cheapest
Hiring the lowest-bid contractor might seem like a way to save money, but it can be a costly mistake if the quality of work is poor. Cutting corners on labor can lead to more repairs and reworks down the line.
❌ Costly Mistake Example: A homeowner hired a contractor offering a kitchen remodel at half the price of competitors. Turns out, the contractor failed to get permits, used substandard materials, and left plumbing unsealed—causing leaks and damage weeks later. The homeowner ended up hiring another team to redo everything properly, doubling their initial budget.
✅ Smart Move: Get multiple quotes and check references before hiring a contractor. Look for professionals who are licensed, insured, and experienced in the type of work you need.
4. Avoid Scope Creep—Stick to the Original Plan
Many homeowners start with a simple project, only to get inspired mid-renovation and expand the scope of work. Adding extra features or changing materials mid-way can quickly inflate costs.
❌ Costly Mistake Example: A family planned a minor bathroom refresh but decided last-minute to expand the footprint by knocking down a wall. This required new flooring, plumbing adjustments, and structural reinforcements, turning what was supposed to be a $10,000 update into a $35,000 remodel.
✅ Smart Move: Set clear renovation goals upfront. If you want to make changes mid-project, assess the financial impact before moving forward.
5. Source Materials Wisely—Don’t Rush Purchases
Ordering materials on impulse or relying solely on one supplier can cost more than necessary. Many homeowners fail to shop around for better pricing, bulk deals, or alternative materials.
❌ Costly Mistake Example: A homeowner rushed to order custom countertops just before installation without comparing vendors. Later, they discovered another supplier offering the same quality for 30% less, but it was too late to cancel the original order.
✅ Smart Move: Research multiple suppliers before purchasing materials. Check for discounts, bulk deals, and seasonal promotions. Also, consider remnant sales for countertops, flooring, and other materials.
6. The Pitfalls of DIY Renovations—Know Your Limits
DIY renovations can be rewarding, but they can also lead to unexpected costs and complications if you lack the necessary skills or experience. While painting a room or updating fixtures may be manageable, major renovations require professional expertise.
❌ Costly Mistake Example: A homeowner attempted to install new flooring without professional help, mismeasuring materials and failing to level the subfloor properly. As a result, boards began warping and separating within months, requiring a full replacement—adding thousands to the overall budget.
✅ Smart Move: Be honest about your skill level and know when to hire a pro. Electrical work, plumbing updates, and structural changes should always be handled by licensed professionals to avoid safety risks and future repairs.
Home renovations don’t have to drain your savings. The key is to plan ahead, expect the unexpected, and make informed decisions along the way. By learning from common budgeting mistakes, you can ensure your renovation stays on track—without financial regrets.
If you are renovating in preparation to sell, I can introduce you to another way to control your upfront cost through RealVitalize®, our program that provides home sellers with home improvement resources during the listing period, with no upfront costs or interest fees. Reach out today, I am here to help.
CONTACT ANNETTE
Let’s start working together!
Annette Dammeyer, REALTOR®, ABR®, AHWD®
Coldwell Banker Realty
901 E Las Olas Blvd STE 101, Fort Lauderdale, FL 33301
808.747.3686
SL 3535792
