Thinking of refurbishing all or part of your home? Setting a budget is a crucial way to ensure you don’t overspend.

When we set a budget for a building or construction project, we have a set amount of money in mind to spend. It is far too easy, and far to frequent, that we exceed that budget and end up with huge debts that we struggle to repay. There is no point in investing in an extension to your property if that extension is going to bankrupt you and force you to sell. That’s why it’s important to recognise the signs that a project will cost more than you think from the outset.

Here are a few ways you can tell if your refurb will go over budget. First, though, let’s talk about alternative ways to pay for it, should the worst happen.

Help! We Overspent on our Home Refurbishment!

If you have already fallen into the trap of overspending your budget for any construction project on your home, there is help there. You can apply for a fresh homeowner’s loan to pay for the costs, or you can unlock up to 80% of the equity of your home, lest what you owe on the mortgage, using a HELOC. The Home Equity Line of Credit is new to the UK although it is well-known in the USA, but it solves many problems for overspending in construction on your home. You only need to apply once instead of going back and forth to the bank. That’s something to think about before you start budgeting.

What are the Signs Your Refurbishment Will Overspend?

Before you rush off and invest all your savings in a whole house refurbishment, here are some classic signs that may indicate you are likely to overspend.

1 – You Didn’t Do Your Research

If you didn’t research the accurate costs of things and instead simply assigned a figure to that area, you will overspend. There’s a small chance you will underspend, but prices are always higher than you might think, especially when it comes to construction materials.

2 – You Leave Ordering Fixtures And Fittings To The Last Minute

If you want a nice set of fixtures and fittings throughout the house, and if you want them all to match, you need to plan. Order them well in advance or you’ll have a bigger invoice to deal with, as well as mis-matching items.

3 – You Never Bothered With Quotes

If you don’t get quotes from different builders, how do you know that you got a good price? If you double this with not doing your research and someone wants to swindle you, you are making yourself an easy target. Call around local contractors and get estimates before you agree to anyone helping in your renovation.

4 – You Think You Can Diy It With No Experience

Lastly, we leave you with the warning that opting to DIY a room or whole home refurb is fine if you know what you are doing but can be more costly than hiring a professional in the first place if you get them wrong.