11 Ways to Stretch Your Remodeling Dollar

Tips 1-5

1. Make plans.
Think before you leap. It sounds obvious, but you'd be surprised how many people rush into projects with their eyes on the finished product and ignore peripheral considerations. Start by consulting a reference guide. Write down your family's present and future needs, and analyze them carefully. Think through the spaces you're envisioning: Are they economical? Perhaps you could combine spaces or, in the future, work out schedules for a new room's use instead of adding yet another room.

2. Know your budget.
Have an informed financial plan in place before the work begins. Financing your mortgage and renovation simultaneously spreads improvement costs throughout the term of your loan. In addition, the interest on your renovation costs is part of your first mortgage and is tax-deductible.

3. Expect the unexpected.
Build a 10- to 20-percent contingency into your budget because you'll inevitably run into unforeseen costs. You'll tear into a wall and find pipes you didn't know were there. You'll unearth asbestos tiles that need to be disposed of properly. Or you'll find rotting structural elements that need to be replaced. With a financial buffer in place, these unexpected setbacks will be less likely to send you running for the antacid tablets.

4. Research stock remodeling plans.
If you have a standard-style home and your project is structural and relatively common, you might be able to use an existing plan and save a bundle over a custom drawing. Start by searching the Internet for "stock remodeling plans"; you'll get a couple of dozen leads to follow. If your home is unusual or has unique problems, consult a contractor.

5. Be willing to compromise.
Wish lists are exactly that; don't let yours strong-arm you into spending more than you have. If your budget can't accommodate granite surfaces everywhere, aim for a similar look with a slate backsplash and composite countertops.