Home renovation can be expensive—and it's easy to go over budget if you're not careful. The little things quickly add up and before you know it, you might find your small renovation project is a lot bigger (and more expensive) than you bargained for.
According to one study, 34% of homeowners went over budget while renovating due in part to products or services being costlier than expected. Homeowners are spending more, too. The same study found that the median spending on home renovations was $18,000 in 2021, compared to $15,000 in 2020.1
By planning carefully, however, you can save hundreds (or even thousands!) of dollars on home renovation costs. Here are some tips on how to cut the cost of home renovation.
1. Create a Budget
Before you begin your home improvement project, it's vital to have a detailed budget. Aside from the typical home renovation costs (e.g., labor, materials, etc.), this should include other related or unexpected expenses, like a hotel if you need to stay away for a few nights or takeout if you're unable to use your kitchen. You should include a buffer of around 10% to 15% to account for any unexpected expenses.2
2. Get Your Permits in Order
Forgetting about building permits is a common, but costly, mistake. If you've started your renovations and don't have the proper permits, a building inspector could make you start over—costing you time, materials and money.
Check with your city or county to find out if you need any permits before you start renovating.
3. Reuse Materials
Before you go out and buy all new materials, take stock of what you already have and what you can upgrade or repair. Unless something is structurally falling apart and damaged beyond repair, it might be cheaper to reuse the item elsewhere.
For example, you can repaint your kitchen cabinet doors and replace the door handles to get a new look in your kitchen without having to buy new ones. Or you could consider using those fixtures elsewhere, such as in a bathroom.
4. Buy Materials Yourself
If you're using a contractor to help with renovations, you might be able to save money by sourcing and buying materials yourself. Shop around at different stores to find the best price on items and check out any sales. To help even more, you can use the Synchrony Bank credit card to buy materials or pay for labor and earn money back on your purchases.
Another way to save money on building materials? Schedule a pickup instead of getting materials delivered. If you have enough room in your car, going in person to get materials can help you save on delivery costs.
5. Shop at a Building Supply Reseller
Rather than getting everything online or at a major retail home improvement store, you might be able to find deals at your local building supply reseller. These distributors have everything you could need to renovate your home and are usually cheaper than buying materials retail. And you'll not only save money, but you'll also be supporting local businesses.
6. Do Your Own Painting
Painting your house yourself is a fraction of the price of hiring someone to do it. And it's a lot easier than you might think. All you need to pay for is the paint and materials. You can even rent out ladders to reach corners and the ceiling. Just make sure to ventilate your room so you don't get sick from paint fumes.
7. Consider Knockoffs
Have your eye on a particular style or product but it's out of your budget? Try to see if you can find a similar style elsewhere. In many cases, you can look for a material that mimics the look of what you want but costs less. For example, white quartz is a great cost-efficient alternative to marble countertops for your kitchen.
8. Refinish Your Floors
If you have hardwood floors, consider refinishing them instead of getting new floors put in. New flooring is expensive. Instead, rent a buffer to sand your floors, then apply a coat or two of finish. Depending on how big the room is, you can get it done in a day or two.
9. Renovate in the Winter
If you wait to do renovations until the winter, you might be able to save some money. Winter tends to be an off-season for contractors, so you might be able to negotiate a lower rate. Retailers also tend to have more sales during the winter months, so you may find better deals on building materials and appliances.
10. Find a Cost-effective Contractor
There are some renovation jobs that require a professional (like plumbing or electricity). But that doesn't mean you have to spend a lot of money. If you're hiring a contractor, ask for multiple quotes and compare them. If you offer to buy your own materials, for example, you might be able to save a few hundred bucks. But keep in mind that the cheapest contractor isn't always the best. Make sure to take referrals and reviews into account when deciding on hiring a contractor.
11. Split Up Your Renovation Plans
If you plan to do a lot of renovation projects, consider splitting them up into rooms or sections. This will give you time to save and plan ahead. You can also spend time looking for great deals on materials and products.
If you know you're planning to renovate in the next few months or year, consider setting up a high yield savings account so you can start stashing money away and earning extra cash. Synchrony Bank's high yield savings account, for example, offers competitive rates with no minimum deposit or monthly fees.
12. Use the Synchrony HOME™ Credit Card
Another way to help when you're renovating your home is to use a credit card specifically designed to help you finance home furnishings.
The Synchrony HOME™ Credit Card can be used at thousands of retailers across the nation. You can get promotional financing of 12 to 60 months on qualifying purchases.* The credit card can be used to upgrade all areas of your home, from buying new appliances to flooring to redoing your patio and garden.
Bottom Line: Home Renovation Costs Can Be Manageable
Whether you find yourself in need of new windows or you just want to change up the look of your kitchen, planning ahead can help you save money when renovating. And by buying your own materials, DIY painting or renovating in the winter, you could save yourself a penny or two.
Moriah Costa is a personal finance and investing writer. Her work has appeared in Thomson Reuters, S&P Global, the Washington Business Journal and others.
*Subject to credit approval. Minimum monthly payments required. Promotional financing offers available at the time of purchase may vary by location. See store for details.
READ MORE: Are You Overspending on Your Home Improvement Project?
Sources/references
1 2022 Houzz & Home. Houzz.
2 Connolly, A. How Much Do I Need to Pad My Remodeling Budget? Home Indeed. Published December 16, 2020.
