How to Create Your Home Renovation Budget

Whenever anyone asks me what a renovation budget looks like, my first thought is… That’s a loaded question!!!

Kitchen and bathrooms cost the most when it comes to renovations, but space isn’t the only factor. We also have to consider the selections, fixtures, and finishes! For example, what kind of flooring? Hardwood, tile, concrete, or carpet etc.?

And then there’s the whole construction side of things. Are we moving walls, adding beams, changing gas/electrical, installing new plumbing? This will change the budget, too!

The list is almost endless!. ;)

Today I’m going to share all the factors that go into creating a renovation budget, along with some tips for doing it yourself. If there’s a bright and dreamy space in your future, a budget is step number one! And it starts here, y’all...

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What are your renovation goals?

Every great project begins with... goals!! When first thinking about a renovation, it’s a great idea to think in terms of how the space will be used. For example, will the space be used for entertaining family and guests? 

Then, we can think about the aspects of the space that will meet this desired purpose. Does it need more room? More natural lighting? A style that feels fresh and current? Better functionality? Storage? Etc.

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What will achieve your goals?

Now that we know everything we want to change about the space, we can make a list of what needs to happen to make those changes. For example, a list for a guest bathroom remodel might look like this:

  • Shower + glass door

  • Tile for shower

  • Tile flooring

  • Toilet

  • Sink

  • Faucets and plumbing

  • Vanity cabinetry and hardware

  • Lighting

  • Oversized mirror

  • Contractor, labor, and installation

If you hire an interior designer, they will help you figure all of this out. At the beginning of a project, I always do an estimate for our clients. This includes a line item list of costs and the total predicted investment. 

I also have the contractor come in to give an estimate at the beginning, usually before I even share a breakdown of the product and pricing. But more on that next, y’all!

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Who is needed on your renovation team?

Though quality is important, the amount budgeted for a renovation will change depending on the roles wanted and needed for the project. Here are a few key players:

INTERIOR DESIGNER (Design Fees)

An interior designer oversees budgeting, creating a design concept, managing the contractor, ordering products and finishes, scheduling, receiving deliveries, problem solving, and installation. An interior designer isn’t required for every home renovation, but without one, these responsibilities fall to the homeowner.

If that’s the case, I suggest factoring in extra time and another 10% of the budget for unforeseen circumstances. There are a lot of things to be aware of when renovating, and TV gets one thing right — it’s 100% normal for something unexpected to pop up.

CONTRACTOR / BUILDER (Labor Fees)

Meeting with a contractor and getting a labor estimate is critical for budgeting. As with designers, the rate depends on who does the work. Certain contractors only do certain types of work.  

When asking for a quote, it’s also worth finding out whether grout, nails, and supplies are something they purchase or something you need to purchase. Take notes. It all adds up!

ENGINEER OR ARCHITECT (Inspection or Design Fees)

Not every project needs an engineer or architect, but it’s possible. If the project requires extensive moving of walls, you may want a structural engineer to assess the integrity of the building. For significant exterior remodeling, an architect is a good idea. (This is something your interior designer or GC can give you advice on.)

Lastly, once you have quotes from the folks who will be helping with your renovation, we can move on to budgeting for materials.

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What is your ideal quality level?

This is an important question to ask before we can calculate a budget, because everything boils down to quality. Some good questions to ask are:

  • Is this your forever home? Do you want everything to be your dream appliances, high-end finishes and fixtures? 

  • What quality levels do you want for fixed elements like lighting, countertops, faucets, hardware, appliances (depending on the space). 

  • Are you keeping any pieces that are already in the space? Which ones? A designer can also help you answer these questions.

Once these questions are answered, I suggest doing some quick item-by-item price research. Write down each product (such as a light fixture, that gorgeous backsplash tile, or a range stove) and the cost.

Then you can tally it up along with the labor quotes to get an estimated budget! I love spreadsheets for this!!

PRO TIP: When writing in and adding up line items, find those 1 or 2 things that you can’t live without and budget for them first. Then, budget the rest. If your dream features are prioritized, you’re more likely to be over the moon when all is said and done!

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What furnishings are needed?

Furnishings are usually a totally different budget than a remodel, and another phase of the project. But I see these two budgets intermixed a lot, so let’s talk about it! Furnishings include furniture, window treatments, area rugs, accessories and decor. Anything that isn’t physically connected to the home. 

If you’re looking to style the space after the renovation, I suggest repeating the same itemized process above to create a budget. A little planning will make all the difference in getting the dream result!

Last but not least, I highly recommend signing up for our Remodeling Guide to help plan and launch your project.

Good luck y’all and see you back here next month!

Sending love from GA!
Sarah