Navigation

Step1

Remodeling Saving Tip$$$

finding ways to keep costs down

Introduction
Tip-1: Manage Spend
Tip-2: Rebate Card
Tip-3: Use Contractor
Tip-4: Stick to Budget
Tip-5: Seasonality
Tip-6: DIY
Tip-7: Become a Bank
navigate

introduction

The cost of remodeling your home - whether it's the kitchen, attic and some other area - can be very expensive.

So look for ways to keep costs down and within budget:

Page Topics:

manage your spend
use rebate credit card for purchases
use contractor discounts
stick to the budget
take advantage of seasonality
segment projects as DIY
become a bank for financing
FREE: budgeting worksheet

Go To Topic: Manage Your Spend

money saving tips

Money Saving Tip #1:

Manage Your Spend

Depending on how you manage your remodeling, the incremental costs of the project comes in phases, generally in this order with some variation:

start with an architectural or layout plan
may need a building permit
purchase initial supplies
upfront payment for contracting work
payments made during the remodeling phases
payments made for subcontractors
expense for inspection
final payment once the project has been signed off

Management Tactics

This is a generic view of when costs may incur and when payments are due. So what was once estimated at $YYY, can quickly turn into $ZZZ, making your remodeling project more expensive than planned.

It's important to learn how best to manage the plan. Your biggest costs will be supplies and contracting services.

To keep those costs within budget, you need to understand - and to negotiate best deal - by reviewing these keep documents when selecting and managing the contracting process:

PDF documents
	contractor evaluation form
	selecting your remodeling contractor
	working with your contractor
	managing the remodling project

Rebate Credit Card

Pick up a rebate credit credit card for remodeling purchases. Find the card the gives you best percentage rebate on purchases made.

Home centers such as Lowes, Home Depot, and others offer approximately 3-5% rebate on in-store purchases. That equates to a 3-5% reduction in costs.

There are other cards that may offer better rates. Shop around! If you get 5% rebate on all related remodeling costs, a $30.000 remodeling project will save you $1,500 if you use your rebate card.

Of course, some contractors may not accept credit card payments. When shopping and comparing contractors, the willingness to accept card payments may be something you use to compare contractor bids.

find award cards for remodling project
	best cash back award cards from nerdwallet

Use Contractor Discounts

If you have a particular contractor in mind, ask about the discounts the contractor can provide from suppliers for wood products, plumbing materials, flooring, walls, cabinets, countertops, and other building materials.

Contractors who buy in bulk from certain suppliers receive big discounts on certain items - much less than if you were to buy as an individual.

These discounts can add up to great savings - and even more savings if you can pay for the contractor discounts with your rebate card.

Stick To Budget

The most cost effective way to keep costs down is to budget exactly what you want based on a specification plan and budgeted amounts.

Share your spec plan and budget with the contractor. They will be able to assess where the spec and budget can be accomplished or whether changes need to be made in order to meet budget.

Once the budget and spec plan has been approved by the contractor, stick to the budget. If costs run to high, be prepared to cut specs from the plan and/or delay implementation until prices stabilize.

One of the biggest budget busters is when there are changes, upgrades, and additions that were not part of the initital plan. Another budget buster are unexpectant fixes that may be required to meet code.

So when you plan your budget, allow for a 5-10% variance in your plan for additional costs.

more about budget planning
	view section about spec planning
	download budgeting worksheet (excel file)

Seasonality

Spring and summer time is the busy home improvement season. All types of contractors are taking on several projects that could run into the late fall and up to the start of the holiday season.

After the holidays, and into the winter months, everything begins to slow down. It is during this time when your remodeling project should begin. Some contractors may offer discounts to keep their crew working during the slow months.

The winter comes with its challenges, however. Especially if you planning to add an addition in freezing temperatures.

But the winter time is when contractors are willing to discount to keep themselves busy up until the spring season.

DIY

If you have experience, perhaps you can take on some of the remodeling projects to save on costs.

For example, you can do the painting of the walls and ceiling; install the flooring; install the lighting; hook up the plumbing; or take on any other project that you feel comfortable with.

You can find tons of youtube videos on DIY. You just need to make sure the DIY project meets code and the quality of work you would expect from a professional contractor.

Become a Bank

Combining all of the tips above will save you money, but you still need to payoff the credit credit, pay the contractor, pay for inspection, and put down money on supplies and fixes.

Unless you have a huge amount of savings, you will need to finance part of your remodeling project.

That is where becoming a bank can save you money. A bank equity program is a home equity line of credit (HELOC) with unlimited draws. You treat the equity line as your main money account by depositing salaries and other revenues into the credit line.

You then use the credit line to pay off remodeling expenses such as your rebate credit card charge when is comes due. You will also use it to pay off living expenses.

By adding your salary to you line, the balance on the home equity will always be low on the amount of interest paid for your remodeling project. Plus the interest on the HELOC will be much lower then holding the balance on the credit card.

The advantage of HELOCs is the line is available when and as you need it. You don't need to take out a large loan that begins interest on the entire amount.