Detail-Oriented
Your guide to Design-Build
How to Budget for a Home Renovation: Realistic Planning from the Start
by Marc Brahaney, July 15th 2025
We meet with homeowners every day to discuss additions and renovations, and one of the first questions we always ask is: What is your budget?
We understand that this question can feel a bit uncomfortable—some clients worry that revealing a number too early might limit their options or affect pricing. But your budget is one of the most important tools in creating a successful renovation. It helps us understand whether your vision aligns with what’s financially achievable.
We work hard to identify hidden issues in older homes, but we suggest building in a contingency buffer just in case.
What is a Prudent Amount to Invest in Your Home?
There is no easy rule here. In some cases, we have seen a rule of thumb recommendation that an investment of 5% to 15% of your home’s current value is a safe investment. We also know that some clients have spent far more on their homes to create spaces that truly fit their lifestyle and needs.
Must-Haves vs. Nice-to-Haves
During our initial conversations, we’ll work with you to define the "must-haves"—the core elements your renovation absolutely needs—and the "nice-to-haves" that would be ideal if the budget allows. Once we understand your priorities, we can help you decide whether to complete the project all at once or break it into manageable phases.
Cost-Per-Square-Foot Estimates
We occasionally provide cost-per-square-foot estimates for our design-build services. We more often discuss costs in terms of parts, or phases, of the project. While we typically do not participate in competitive bid processes, we’re always happy to provide a cost range to help you evaluate your options and make informed decisions.
Don’t Forget the Hidden Costs
Renovations—especially in older homes—can come with surprises. Hidden structural issues, outdated wiring or plumbing that do not meet code can all affect your final costs. We work hard to identify these risks early, but it’s smart to build a contingency buffer into your budget just in case.
If you’re financing your renovation, be sure to include loan fees and interest payments as part of your overall financial picture. And don’t overlook potential long-term savings from energy-efficient upgrades like insulation, appliances, or solar panels—those investments can pay off in lower utility bills for years to come.
Transparency = Better Results
At the end of the day, the more transparent we can be with each other—especially about budget—the better the results. We’re here to make your renovation as smooth and rewarding as possible, starting with clear expectations from day one.
Ready to talk numbers? Let’s sit down and explore how to bring your renovation vision to life, responsibly and beautifully.
