Whether you’ve recently purchased a home or have owned one for years, renovation projects can be an opportunity to improve your space while adding value to your property. From updating a kitchen or bathroom to finishing a basement or refreshing a living area, thoughtful planning can help you make the most of your investment.
While renovation costs can add up quickly, there are several ways to keep projects on track financially without sacrificing your goals.
Start with a realistic renovation budget
A well-planned budget is one of the most important steps in any home improvement project. Before selecting materials or hiring contractors, take time to estimate the full scope of costs and determine how the project fits into your overall financial plans. Our Savings Goals calculator can help you understand what it will take to save for your project.
Project costs can vary significantly based on the size of the renovation, the age of the home, material selections, and labor expenses. Online remodeling calculators and cost estimators can provide a helpful starting point when building your budget.
As you plan, consider the value of your home as well. Many homeowners use renovation costs as a percentage of their home’s value when evaluating whether a project makes financial sense. It can also be helpful to set aside a contingency fund, typically around 10 – 15% of the project’s cost, to help cover unexpected expenses.
If you’re unsure about how to finance a renovation, speaking with a trusted financial advisor or lender can help you better understand the options available to you.
Consider taking on projects you’re comfortable completing yourself
For certain home improvements, a do-it-yourself approach can be an effective way to reduce costs. Projects such as painting, installing hardware, updating light fixtures, or completing basic landscaping often require a more modest investment and can have a noticeable impact on the look of a home.
Before beginning a DIY project, consider both the cost of materials and any specialized tools you may need. Renting or borrowing tools for one-time projects may be more cost-effective than purchasing equipment you won’t use again.
At the same time, some projects may be better suited for licensed professionals, particularly those involving electrical systems, plumbing, structural changes, or work that requires permits and inspections. If you decide to hire a contractor, be sure to verify licensing, insurance, references, and reviews before making a decision.
Be strategic when purchasing materials
Timing can sometimes make a difference when purchasing renovation materials and home décor. Comparing prices across multiple retailers and watching for promotions can also help you identify savings on larger purchases.
Seasonal products, outdoor building materials, and holiday décor are often discounted during the off-season, making advance planning an opportunity to reduce costs. If your renovation timeline allows for flexibility, purchasing materials when demand is lower may help stretch your budget further.
Explore reclaimed and secondhand materials
Not every renovation project requires brand-new materials. Reclaimed, surplus, and secondhand items can often provide quality, character, and cost savings.
Local marketplaces, salvage yards, reuse centers, and secondhand stores may offer materials such as tile, cabinetry, fixtures, doors, lumber, or hardware at a fraction of the cost of buying new. With a little creativity, previously owned furniture and building materials can often be repurposed to fit a renovation project while helping keep expenses under control.
Make the most of available rewards
If you regularly use a rewards credit card and can pay off purchases responsibly, renovation spending may provide an opportunity to earn cash back, travel rewards, or other benefits.
Some financial institutions also offer limited-time promotions that provide bonus rewards on qualifying purchases. Before using credit to fund renovation expenses, be sure you understand any interest charges, repayment requirements, or promotional terms.
Consider financing options
For larger renovation projects, financing may help make improvements more manageable. Homeowners with available equity may want to explore a home equity loan or home equity line of credit (HELOC), both of which can be used to finance qualifying home improvements. Depending on the project and your financial situation, a personal loan may also be an option.
The right solution depends on factors such as project cost, repayment preferences, available equity, and current interest rates. Reviewing your options with a lender can help you determine the best fit for your goals.
Planning for a successful renovation
A successful renovation starts with thoughtful planning. Establishing a realistic budget, prioritizing projects, exploring cost saving opportunities, and understanding your financing options can help you move forward with confidence.
Whether you’re making small updates or planning a larger remodel, OakStar Bank is here to help you evaluate your options and prepare for the financial side of your project. Contact our team or visit one of our locations in Missouri, Kansas, or Colorado to learn more and get started.