Home renovation projects are more than just exhausting; they are also, in many cases, expensive. It's not uncommon for homeowners to spend anywhere from $500 to $2,000 on a major renovation project. Unfortunately, the high cost often deters some homeowners from proceeding with the project. But there are ways to lower the cost of home renovation projects, including the five tips listed here.
#1) Set a Budget
It's always a good idea to set a budget before proceeding with a home renovation project. Whether you are repainting a room or converting your home's closed floor plan into an open floor plan, you should determine exactly how much money you are willing to spend. With a budget in mind, you can analyze the expected cost of materials and labor to ensure that you don't go over.
#2) Contact 3 Contractors
A good rule of thumb to follow is to get quotes from at least three separate contractors. Even if the first contractor whom you contact offers you an attractive deal, another contractor may offer an even better deal for a better service. The only way you'll know, however, is by calling around. So, contact at least three contractors before agreeing to purchase their services.
#3) Buy Materials Yourself
In some cases, you can save money on home renovation projects by purchasing the materials yourself. Contractors often receive discounts on materials from major supplies. Known as a builder's discount, it can range from 1% to 10%. However, many contractors jack up the price of their materials to customers, forcing them to a pay a premium. By purchasing the materials yourself, and then providing them to the contractor, you can save money on your home renovation projects.
#4) Do It Yourself
Of course, another idea is to perform the renovation yourself. If you have the necessary tools and are willing to invest your time and energy, consider doing it yourself. Repainting a room is a relatively easy renovation project that most homeowners can do themselves, without the need for a professional contractors. If the project is extensive, though, hiring a contractor may be your only viable option.
#5) Consider Tax Rebates
Federal and state governments offer incentives for certain home renovation projects. Normally, applicable renovations involve energy-efficient upgrades like the purchase of ENERGY STAR-rated appliances or a solar power system. For the latter, you can deduct 30% of the cost of a solar power system from your federal income taxes. If you spend $10,000 on a solar power system for your home, for example, you'll save $3,000 on your taxes. That's a substantial discount that can help offset the cost of solar power for your home.