When you begin remodeling your whole home or a specific area within your home, you’ll be faced with myriad decisions on how and where to spend your money. The problem is that your options aren’t always clear beforehand. Have you ever heard a homeowner say, “I wish we had known...” or “Looking back, I definitely would/wouldn’t have…”? This is where it helps to solicit an expert opinion to help you navigate your options. Believe it or not, there are several ways to save money when you remodel, and they don’t all involve compromising on your wants and needs.
This article will examine nine ways to help you save money on your Chicago-area home remodel.
1. Secure Competitive Financing
Saving money on your remodel starts with knowing your financing options. You’ll certainly want to shop the market, researching and comparing lender rates. Remember that you can position yourself for success by preparing on your end, too: before you contact prospective lenders, make sure you know what your credit score is (and how to improve it, if needed), try to improve your debt-to-income ratio, pay off as much debt as possible, be sure you can present a solid employment/income history, know how much you might be able to allocate toward a down payment, etc. Preparing these items in advance will help you negotiate better rates.
Additionally, Nerdwallet recommends knowing the lending landscape (credit unions, mortgage bankers, correspondent lenders, savings and loans, and mutual savings banks). Nerdwallet also provides a list of five specific questions you should ask any prospective lender. This will enable you to select the most competitive option for your home financing needs.
2. Go for Design-Build
As you prepare for your remodel, you can work with a traditional construction company or a design-build firm. Design-build firms are cost-effective because there aren’t hidden fees: everything is under one roof, including architects, designers, contractors, and construction professionals. Because everything is managed by the same company, communication is clear, and you’ll have a better idea of the full project cost upfront.
Read more about the difference between traditional construction and design-build here: Design-Build Construction vs. Traditional Methods: Know the Key Differences.
3. Be Market Savvy
As you begin to plan your remodel and select finishes, ask your contractor to help you price materials. Material costs are always going up or down based on market demand. For example, certain fencing and decking materials are currently much more expensive than they used to be after home improvement projects became popular during COVID-19. Knowing the current price status of various materials will help you know where to stick to what you really want and where to just go with what’s available.
4. Prioritize Your Budget
Related to the concept of pricing materials, it’s important for you to know in advance which areas of the home and which features within the home are your priorities. For instance, knowing that you’re an avid chef and host will help you know you want to prioritize custom cabinetry in your kitchen rather than built-in cabinetry in the basement. Decide ahead of time how and where you want to prioritize your budget to keep your focus as you plan.
5. Ask Your Designer for Help
It’s always good to balance these priorities with your designer’s opinion. Having advised on multiple home remodeling projects, your designer will be able to help you understand where you’ll get the biggest visual bang for your buck. They may advise you to prioritize layout and lighting over another feature you’re entertaining. Ultimately, it’s your decision, but it’s always wise to balance your thoughts with someone who’s been through multiple remodels before.
6. Remodel for Resale
Another way to help you prioritize how and where you’re spending is to consider the resale value of each investment. Of course, if you’re planning to retire in your home, this won’t be as big of a consideration, but if you are planning on reselling your home at some point, you’ll want to check that your spending decisions will result in a solid return on investment when you’re ready to sell. Projects that best help with resale are the kitchen and first-floor updates, basement remodels, master bathrooms, and additions.
7. Make a Plan and Stick to It
It goes without saying that changing your mind about your remodel mid-way through will take a toll on your budget. In the remodeling world, changing the scope of the work after construction begins is known as a change order. A great way to save money on your remodel is to reassure yourself that your plan is good. Trust your decisions, and trust the process. Your design-build team can help you create a plan that gives you confidence.
8. Be Willing to Live Through the Remodel
Remodels can be loud, messy, and occasionally stressful, but if you’re willing to live in partitioned-off areas of your home during the remodel, you’ll save a significant amount of money. If you don’t want to deal with the hassle of living in a construction zone, try being inventive about how and where to live to save money as your home is being remodeled.
Read this blog post, "How to Renovate a House While Living in It: Surviving Home Renovations," to learn how to live successfully in your home during a remodeling project.
9. Remodel Off-Season
Lastly, ask your contractor when their busiest time of year is and when they’re free. Then, ask how your budget will be impacted if you remodel during their off-season. You may just be able to save a little money by waiting a few months.
Start planning your home renovation project by downloading this eBook, "The Ultimate Step-by-Step Home Renovation Transformation Guide."
