How to Reduce the Cost of Your Home Renovation

Costs for home improvements can mount up rapidly. Here are a few strategies for planning a more affordable makeover.

For most people, one of the greatest concerns when it comes to home renovations is going over budget. And for good cause.

It's difficult to avoid spending more money than you intended to, even if you heed the fundamental advice we've been dispensing for years: budget for a 10-20% buffer to handle unpleasant surprises.

You can reduce expenses without sacrificing quality by carefully considering materials, design options and scheduling. We'll outline some of them below, from major ones to little ones like selecting a wall sconce versus a recessed light.

But there's another truth that applies to all home improvements: minor things add up. Determining whether or not to completely demolish the house and start over is thus a crucial first step.

To Remodel, or Start Fresh?

One of the first decisions homeowners need to make is whether to remodel the existing home, or build a new custom home. If you’re starting with nothing, that’s not an issue, but if there is already a home on the property, certain factors can help you decide. First, what is the condition of the foundation, and is there any portion of the home that you would essentially be rebuilding in the same place - such as the garage? If the foundation in that portion of the home is still viable, and there is a portion of the home that is salvageable, many times it can be less expensive and quicker to remodel than to demo everything and build new.

Here’s some other tip to consider:

Bigger isn’t always better, focus on function

You might not need to knock down walls to add square footage if you can reorganize and outfit your kitchen for maximum utility. Start by swapping out space-consuming shelves for cabinet-height, 8-inch-wide pullout drawers that have racks for cans and other items.

You might easily spend a few thousand dollars to update your cabinets with features like dividers, pull-out pot trays, and lazy-susans, but by forgoing that addition, you'll save several times that amount.

Utilize Natural Light

Consider less invasive—and less expensive—methods of catching light before making a large hole in the side of your home and moving the framing. Skylights can be a great source of light, especially if the sides of the home don’t get much natural light or are blocked by other buildings.

Recycled Materials

For unique finish materials, check out your local Habitat for Humanity ReStore. Habitat for Humanity maintains around 400 ReStores across the country, where salvaged goods are sold at half the price of retail and building material shop prices.

One warning: Because they don't want to take on the risk of liability in the event that something goes wrong or the item doesn't work properly, many contractors won't work with salvaged things or homeowner-supplied materials in general. Be sure to discuss this with your contractor first! However, we've seen some brand new items and even donated some building materials like tile, tubs, toilets, and more to these stores so sometimes you can score! We've also seen some really neat antique doors, just make sure your contractor is willing to work with it and you verify that the door is in good shape and the right size you need. It could end up costing more if your contractor has to alter the door... but if you are looking for a unique focal point this can be a great source.

Bonus: Donate your recyclable and salvageable demo items, such as cabinetry.

Look at the Long-Term

Certain items can cost less upfront but after considering maintenance costs, spending a bit more upfront can be the way to go. This can be especially true with certain types of siding, fencing, and decking.

Ask your Contractor For a Hook Up

Your contractor is likely already helping you find ways to get the most bang for your buck, but it never hurts to ask if they can connect you with their supplier for finish materials at a discount. Most of our contracts don’t include finish materials, this is because we want our clients to be in control of how much they are spending and get exactly what they want. In our opinion, there is no reason for us to play middle man and charge a mark up on these materials. Our labor and installation rates are transparent and reliable. We connect our clients with suppliers who will show them options for their home, which allows them to take advantage of our special rates with zero markup on our end. After all, the better your home looks, the better our work looks.

Hire The Right Architect

So much of the cost and functionality of your remodel will depend on its design. The right architect is key. We would be happy to connect you with one of our trusted architects, or you are welcome to hire your own. If you are looking to keep the cost down, make sure your architect is using common materials. This means sizing and accessibility. We have had clients come to us with finished plans, only to realize that the architect used specific materials that only their builder had access to. The plans had to be redone. The client was unable to get quotes from any other builder than the one that architect worked with because the material was proprietary. It was pretty bad news. While this doesn’t often happen, with the rise of design-build companies we have seen this problem, which limits a homeowner from being able to get comparative bids from other builders after the plans are done. So, the lesson is, ask your architect to use materials that are readily available and commonly found. There are still a lot of unique options out there, and your designer will still be able to design a stunning home with this in mind.

Pay for a Consultation

It’s become commonplace to expect Free Estimates. However, it can actually be worth the small investment (our consultations start at $350.00) to get a General Contractor to come and look at the property and spend time finding out what you want to do, and advise you on a few options that perhaps you haven’t thought of before you start the design, or during, while not being under any obligation or contract. Many Free Estimates are just sales gimmicks or estimates done by Estimate companies that churn out hundreds of them a day. Sometimes contractors will low-ball these Free Estimates just to get into the job. A true Consultation is a great way to really test a contractor before being in a contractually relationship, while still valuing their time and effort. The best contractors aren’t driving around doing 50 Free Estimates a day… and sometimes the cheapest route costs more in the long run. Hire an expert and get their professional guidance before, during, and to manage your home remodel.

Keep The Plumbing Where It Is

Moving utilities like plumbing can add quite a bit to the overall cost, so if possible, leave the kitchen sink and toilet where it is. However, while you have everything open, make sure all the pipes are in good shape and handle it then rather than down the road.

Choose Early

Don’t wait until the last minute to choose materials. Make those choices early so you have time to shop around and check for sales. Before the wrecking crew arrives, start browsing the aisles of the hardware or home improvement store. Get a strong idea of the fixtures and appliances you desire, as well as their costs.



We hope this helped you find a few ways to keep the cost down on your home renovation. If you are looking for a Los Angeles custom home builder or expert to remodel or renovate, contact us today. Advanced Builders & Contractors has been building the best homes for over 17 years and counting. We specialize in full home remodeling, custom homes, and hillside properties.