Cost cutting during a remodel takes forethought and planning

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Published Date 11/1/2023

Some people who’ve been through it liken it to pregnancy and childbirth. Remodeling, like everything that leads up to the prize itself, seems tepid, fascinating, and a tad introspective at first. Toward the end, however, there is financial pain and sometimes a few regrets. After that? No one talks about all the pain because bliss is the word of the day.

Realtor.com’s Renee Morad puts it this way: “There’s something romantic, rewarding, and even downright inspiring about bringing an outdated house into the 21st century—but ask anyone who’s been there and done it, and they’ll tell you the remodeling process will test your patience, your budget, and perhaps even your sanity.”

National Association of Realtors’ Mike McGraw agrees. “It’s a journey into the land of unknowns. You just don’t know what’s inside that wall and how much more it might cost to remove, say, that sewer line until you get in there.”

While even contractors don’t know what they don’t know until they tear into a wall, floor, or ceiling, Morad offers a few ways to cut costs during the process, including doing some research on your own before you get started. The first is being armed with info about competing contractors. “Selecting a trustworthy contractor can make a world of difference in the timeline of a home remodel, which will ultimately save you money. Of course, you’ll want to ask friends and acquaintances for recommendations and follow up with references.” Even if your budget isn’t quite as generous as those you know who have been through this, you do have to ask yourself if you have enough cash to make your dream renovation happen, however.

Morad’s first secret is to name-drop competitors and the prices they’ve quoted. First, get at least three written estimates to compare costs and timelines. Don’t forget to verify any applicable trade license, bonding, and insurance information. With each, propose/insist on a payment schedule tied to project progress and keep at least 10% back until the job is completed to your satisfaction.

While it may feel tacky to mention names when meeting with contractors, it’s more likely they might be willing to strike a deal to win your business. Like any other businessperson, knowing they can beat out their competitors on some parts of the job is often meaningful to them.

Be prepared to compromise if the budget seems to have a few monetary shortfalls. While kitchens and bathrooms are the most popular areas in the home to renovate and the numbers you will be quoted can be scary, there are some simple ways to spruce up these areas without spending too much. For bathrooms, a fresh coat of paint and some new countertops can spell updated almost immediately. Change out some faucets, the shower head and the cabinet door handles and — presto!

Even in kitchens, simple fixes can include replacing cabinet and drawer knobs with more modern hardware and/or new appliances. Pay close attention to sales at big box stores.

Like location in real estate, timing counts with remodeling. “Homeowners frequently wait for warm weather of spring—along with that lovely spring tax refund—to start their home remodeling projects,” says Morad. “But kicking off a renovation between January through early March—when there’s significantly less demand for contractors and materials—could allow you to land some good deals. Just be aware that weather conditions could make the project take longer.” She goes on to mention that frozen ground and dry air are actually great conditions to dig foundations and pour concrete footers — all happening well ahead of when prices start to creep higher.

If you’re in the market for appliances, don’t forget that sometimes the best deals are in plain sight — such as floor model markdown that can knock as much as 20% off the price. A big caveat: If a product on display is plugged in or is otherwise being used, you should check the warranty to see if the deal makes sense. This includes a store’s small inventory of “scratch and dent” items that are marked down. Even if they’re not, however, look for flaws. Sound sneaky? It’s not. Top dollar should mean perfection, so when you can point out the flaws, you’ll see just how low a sales associate is willing to mark it down, even if you have to sit on your hands for a while as they check with their manager.

And then there are other people’s discards — such as appliances that were purchased and returned just because they didn’t fit. Just make sure you don’t become one of them. Measure your space before starting any remodel ten times over.

Cabinets are often a huge chunk of the remodel budget, accounting for as much as 40% of a renovation budget. But going for ready-to-assemble or semi-custom cabinets can cut the cost of cabinets by nearly half. “Prices typically start from as low as $60 per foot for budget to midlevel cabinets,” says Morad. “Compare this to the cost of custom cabinets—which range from $500 to $1,200 per linear foot—and you’ll quickly realize this simple workaround could land a pretty sweet deal.”

Plus, there is no reason not to ask your contractor if he has any materials left over from a previous job that you could snag at a fraction of the cost. Of course, this means you’ll need to be flexible about your materials and have some wiggle room when it comes to a specific paint color or shade of countertop, but if you can live with the style or color, it can lighten up your project’s bottom line.

Realtor, TBWS

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