The Key to Successful Home Design on a Budget
Choosing to conduct a major redesign of your home is a big decision. There are a number of factors to take into account, but the biggest to consider will be the cost of your project. To have a successful home design while sticking to a budget will require strictly following a number of steps to ensure you don’t spend beyond your means.
How Much Does the Average Home Design Cost?
The average cost of redesigning a home has risen in recent years, making setting a budget all the more important. On average, homeowners spend $15,000 on renovation projects around the home. Home renovation can include anything from constructing a fence to knocking down walls in the home to open up more space. Each type of redesign will come with a varying cost that adds up to the large total remodeling cost.
What Are the Largest Expenses Involved in Home Design?
As you start to redesign your home, it’s only natural to wonder which expenses are going to cost the most. Whether you’re looking for a custom home builder in London, the United States, Canada, or another country, the following redesign tasks will come with the highest price tags:
- Remodeling the kitchen and installing new appliances
- Remodeling the bathroom and installing new plumbing
- Building outdoor areas
- Adding central heating or air conditioning
- Replacing the roof of your home
- Building an in-ground pool
While there are many more ways to redesign a home than just the above, it’s important to expand your budget if one of the above items is on your to-do list.
How to Save Money When Designing Your Home
Just because the average home redesign cost is so high doesn’t mean you’re destined to spend that amount of money. There are six keyways any homeowner can save money as they start to tackle their home design project:
1. Set a budget before you ever start
One of the fastest ways to spend too much money on your home redesign project is to start without a budget in place. It’s not enough to just estimate what your home design will cost. You need to build out a budget in writing and break down your costs on a per item basis to ensure you only spend what you can afford.
2. Understand how you will use the space you live in
When starting to design a home, you need to think about your plans for the space you are building. For example, if you put in a large front porch just because you like the aesthetic, but you never plan on using it, then paying the large cost may not be worth it.
3. Consider the neighborhood you are building in
Be aware that some neighborhoods may have HOAs that regulate certain aspects of what your house needs to look like. You may want to cut certain corners to reduce costs, but the HOA may require certain items. Additionally, keep in mind that if you’re in a growing neighborhood, a larger investment could be beneficial as your home may increase in value faster.
4. Find a builder who can work with your budget
Avoid being a general contractor yourself. Find a contractor and building team who won’t try to sell you on every little addition that you never considered. Instead, find a building team who respects your budget and only makes additions that you approve of.
5. Don’t settle on the first offer from lenders
Assuming your project is large enough that it requires a loan, it’s best to reach out to different lenders. See if they allow for prequalification offers that show what interest rate you would be charged on the loan. Never settle for the first offer a lender provide. Instead, shop around before making your decision and tell lenders if you receive a better offer elsewhere to see if they’d adjust terms.
6. The more unique you make your home, the more expensive it will be
Choosing to design and build a unique home will naturally cost you more money, but it will also improve your resale value over time. For perspective, an unobstructed view in a crowded neighborhood, even with houses just above your own, will allow a house to sell for 30-50% more on average. New appliances and unique home designs will also effect this value over time.
Create a home you’re proud to live in
Successfully redesigning your home can leave you feeling satisfied and happy with your new abode. However, that feeling of satisfaction can quickly be ruined if you put yourself into debt designing your new home. Focus instead on staying within your budget throughout the process and working with a building team who understands your unique home design needs.