Money Saving Monday: Home renovation on a budget

PHOENIX — Once you’ve purchased a home of your own, you may want to start diving into home renovations.

It’s something homeowners plan to do not just to increase the property value, but also to make it more functional and comfortable.

But if you’re not careful, you could easily find yourself going over budget.

If you’re dreaming of a home makeover or backyard revamp, you’re not alone.

In fact, the home renovation industry has surpassed the $400 billion threshold within the past couple of years, according to reports from the Joint Center for Housing Studies of Harvard University.

But doing it the right way is key, so you don’t end up regretting the decision to start a costly renovation.

“I love remodeling, because it gives you a chance to keep the character of your home, while still making it feel fresh and new,” said Nohealani Sentenac, a Mesa homeowner.

She’s been doing interior design for about eight years, and she officially started her own business a year ago. 

“You can do exactly what you want to your home,” she said. 

She even did a project in her own home on a limited budget.

“We used our current cabinets that we had, and we were able to rearrange the whole kitchen layout, DIY a few things, and elevate the look of the kitchen,” said Sentenac.

The most impressive part? She didn’t exceed her budget.

And if you ask the experts, that’s hard to do. 

“Home improvement season is never over,” said Courtney Klosterman, a home insights expert with Hippo Insurance.

She said whether you’re completing seasonal home maintenance or taking on a new home renovation project, it’s important to stay in control of your project.

Do your research, create a master plan, and stick to it, before you get out those paint swatches and power tools.

“…to protect your home and prevent unexpected surprises, and that can be things like unexpected cost,” she said.

Klosterman shared some of the biggest mistakes homeowners make that end up costing them way more in the long run.

“One of the first mistakes to avoid, that can be commonly overlooked, is not reviewing your homeowner’s insurance policy or any other insurance policy that you have, before completing renovations or upgrades in your home,” she said.

Klosterman said certain renovations or upgrades could impact your current insurance coverage and might not be covered under your existing policy, and that could include some of the work for the actual construction itself.

“Renovating a kitchen or even extending the footprint of your home… those are larger scale projects that may be more likely to impact your home insurance premium,” said Klosterman. “…rather than minor repairs or improvements, like upgrading appliances or lighting fixtures, which shouldn’t be an issue when being covered by your insurance policy.”

Another mistake to avoid?

“…underestimating project scope and cost of that project,” said Klosterman.

She said having a realistic understanding of your project’s complexity will help you avoid running out of resources or hitting other roadblocks in the middle of your project.

“To help avoid these pitfalls, do your research early, and talk to professionals,” she said. “Speak with knowledgeable experts, like a handyman or other people in your network, to understand the scope of certain projects… the types of materials that could be involved, and any other potential hiccups that could come in the way as you’re completing that project.”

That will ensure you dodge the pitfalls before you get started, just like Sentenac did.

“Start picking out everything at the very beginning, so that you know what things cost because sometimes there can be sticker shock,” she said.

Another pointer to keep in mind — Klosterman recommends being honest about your own skillset. She says it’s ok if you’re confident in taking on only parts of your project as a DIY project, and then bringing in the experts to complete the other parts you might not be able to do on your own.

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