4 Tips to Help You Save on Home Improvement Costs

October 14, 2024

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As you look around the house, you may notice that some areas could benefit from a makeover. Even simple DIY upgrades, like a fresh coat of paint, a pressure wash, or an update to the fixtures, can spruce things up and add to its curb appeal.

But before hauling out your tools, it’s important to figure out how much time and money you can realistically devote to your project. Planning ahead can help you save on costs and avoid going over budget. Here are a few tips you may want to consider.

1. Plan ahead and create a realistic budget

Home improvement projects can range from the simple to the complex. As a first step, you’ll want to list the specific upgrades you’d like to make and build a budget from there. Be mindful that certain projects (e.g., electrical, plumbing, etc.) may require city permits to complete. Check with your contractor and local government authority to understand any official requirements before starting work.

For cost estimates, you can do your research online or talk to local home contractors. It’s important to choose updates that are achievable according to your budget and timeline (as well as skill level if it’s a DIY project).

It can be hard to get your budget numbers exactly right, especially when it comes to bigger projects, which are often prone to cost overruns. Consider adding a cushion to your budget to cover any potential unexpected costs. The general guideline is to add anywhere between 10% to 25% to your total. It’s also not a bad idea to run your plans by your family and friends – they may be able to share lessons learned from their own projects.

Once you have your estimates, you’ll need to decide how to cover those costs. Whether you’re planning to use your personal savings or a loan, it’s important to commit to your budget as best as possible. Adding little extras on top of your original plan here and there may not seem like a big deal, but those costs can really add up in the end.

2. Focus on upgrades that could add to your home value

If you’re thinking about renovating your home to prepare it for sale, you may want to speak with a local realtor or contractor first to learn what kind of improvements would be most valuable and appealing for your housing market. Not all upgrades may be a value-add, so it’s important to be selective.

For instance, updating your kitchen could be a smart investment if you plan on selling your home. The kitchen is often considered the heart of the home, where friends and family gather to cook, eat, and spend time together. Perhaps that’s why it tends to be the first stop for many prospective homebuyers during a showing.

For those working with a modest budget, keep in mind that kitchen upgrades don’t always have to involve a full remodel. In fact, you can start small with projects like:

Modernizing the kitchen sink and faucet.
Repainting/replacing cabinets and drawers.
Updating the backsplash and various fixtures like knobs and handles.
Upgrading older appliances with more modern, energy-efficient options.

3. Shop for contractors

If you’re planning to work with a contractor, it’s a good idea to ask for and compare bids from multiple candidates. While cost is an important factor, you’ll also want to consider a contractor’s reputation, quality of work, and experience. Be sure to work with trusted professionals who are insured and licensed. Check to make sure they come with good references.

Not sure where to start with your search? Consider talking to friends, family, or a realtor for advice and suggestions.

4. DIY what you can

A little DIY can go a long way to help you cut costs – even if you’re relying on contractors to do most of the heavy lifting. Talk to your contractor and see if you may be able to save on labor and delivery costs if you go to pick up the materials and supplies yourself.

If you’re handy and feel up to the task, there may be certain tasks you can handle yourself. For example:

Repainting your interiors or exteriors – a fresh coat of paint can be a cost-effective way to brighten up your home.
Updating various outlets and fixtures throughout your home.
Setting up or cleaning up the workspace at the start/end of each day.

Here are some more ideas to help you save:

Wait for items to go on sale before purchasing. Certain appliances and fixtures often go on sale around the holidays.
Visit your local recycling centers. Some stores accept donations of leftover building materials and sell them at a reduced price. (If you’re working with contractors, talk to them first before using reclaimed construction materials. Some contractors may not work with recycled items due to liability concerns.)
Drop in at your local public library. Depending on the location, patrons may be able to rent hand tools, power tools, and pressure washers.

This article is for informational purposes only and is not a substitute for individualized professional advice. Articles on this website were commissioned and approved by Marcus by Goldman Sachs®, but may not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates, subsidiaries or divisions. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice.