Home remodeling can quickly become expensive, but you can save money by carefully planning and employing smart strategies. The comprehensive guide below offers 19 practical ways in which you can save money on your house remodel, from maximizing existing space to finding creative ways to source materials.
1. Evaluate Remodeling vs. Building New
One of the first things to consider while planning a potential remodel is whether remodeling is the most cost-effective choice for you. If your potential remodel includes lots of extensive changes, starting from scratch might make more financial sense. This is especially true when you consider improved energy efficiency and building standards that are typical of contemporary structures.
2. Create a Realistic Budget
Once you’ve decided to remodel, create a realistic budget that’s based on your goals and financial situation. Start by researching average costs for comparable projects in your area, and factor in a 20% cushion for unexpected expenses. Be honest about what you can afford, and prioritize your must-haves versus nice-to-haves.
Consider both short-term costs and long-term savings when making your budget. Investing in energy-efficient appliances or high-quality materials might cost more upfront, for example, but it can lead to significant savings over time.
Don’t underestimate the cost of skilled labor — it’s one of the most common budgeting mistakes homeowners make. As TOH general contractor Charlie notes: “Some homeowners might have an idea what materials cost, but they don’t really know what labor costs, and that’s a huge part of the renovation bill.” Understanding how labor factors into your total project cost will help you build a far more realistic budget from the start.
When deciding where to allocate funds, TOH experts recommend spending more on anything that will be harder — and more expensive — to fix later. “Going backward to fix something is almost always more expensive than spending for the upgrade the first time,” says Nathan. TOH DIY expert Jenn Largesse agrees, especially when it comes to flooring: “To redo flooring is a nightmare. So that was one thing I was determined to get right when we renovated. Your floors work awfully hard. And they set the colors for the whole house.” The same logic applies to insulation, windows, and anything buried behind the walls.
Pro Tip: TOH home builder Jeff recommends setting aside more than you think you’ll need: “Plan to have 15 to 20 percent of your budget in reserve to cover unforeseen things once the work starts.” TOH contractors consider the standard 10 percent the bare minimum, especially for older houses that are notorious for harboring long-hidden dysfunctions.
3. Increase Storage Without Expanding
Look for ways to maximize your current floor plan before you invest in an expansion. This can save you thousands of dollars, and will still improve your home’s function and appeal. Replacing space-hogging shelves with cabinet-height pullout drawers that are equipped with racks for canned goods and other items can significantly increase storage capacity, for example.
4. Reorganize Kitchen Layout
A full kitchen renovation can be extremely expensive. Instead of gutting your kitchen, focus on smart storage solutions that can transform the space without breaking the bank. Consider installing pull-out organizers in existing cabinets, adding a lazy Susan to corner cabinets, or incorporating vertical dividers that can store baking sheets and cutting boards. These relatively inexpensive upgrades can make a world of difference in your kitchen.
5. Consider Long-Term Costs
Consider long-term costs and benefits when you’re selecting materials instead of exclusively comparing price tags. Spending a bit more upfront can sometimes lead to significant savings over time. If you’re installing clapboard siding, for example, you can save more in the long run by choosing pre-primed and pre-painted varieties.
6. Explore Look-Alike Alternatives
High-end materials can inflate your remodeling budget, and there are frequently less expensive alternatives available that can give you similar looks and feels. Instead of investing in expensive hardwoods such as mahogany, for example, consider using Lyptus, a sustainable eucalyptus hybrid that looks similar but is available at a fraction of the price.
7. Shop at Recycling Centers
Recycling centers and salvage yards can be goldmines for budget-conscious remodelers. Habitat for Humanity operates more than 1,200 ReStores in North America, for example, and offers salvaged materials at half-off home-center prices. You can find everything from gently used fixtures to partial bundles of insulation at these centers.
These reuse centers are part of a rapidly growing national network. Beyond Habitat ReStores, independent building-material reuse stores have exploded in number — from just five or six locations several years ago to over 200 stores across the country. To find one near you, visit the Building Materials Reuse Association (BMRA) website, which lists salvage stores nationwide.
8. Attend Building Supply Auctions
Building supply auctions can be an excellent source of discounted materials and fixtures. These auctions typically feature a wide range of items, from slightly damaged goods to overstock and custom-ordered items that no one ever picked up.
9. Use Contractors’ Leftover Materials
Ask your contractor about leftover materials from other jobs. Many contractors have excess stock from previous projects that they’d be happy to use on your remodel at a discounted rate. This can be particularly useful for flooring, tiles, and other materials for which consistency is key.
10. Schedule During Off-Peak Seasons
Contractors and suppliers cycle through busy seasons and quiet seasons. If you time your project to overlap with slower seasons, you may be able to negotiate better rates and enjoy more flexible scheduling. Many contractors are busiest during the summer and between September and Christmas. Some contractors offer discounts during their off-seasons, too.
11. Make Decisions Early
One of the most effective ways to keep costs down is to make all of your important decisions before work begins. Last-minute changes and indecision can lead to costly delays and order adjustments. Start researching and selecting fixtures, appliances, and materials long before your project’s start date.
Pro Tip: Jeff Sweenor, home builder and This Old House contributor, advises: “To get an accurate estimate, you need to lock in the project details.” And don’t forget lead times—TOH DIY expert Jenn Largesse adds: “Delays really hurt a job, so make sure to order your finishes well in advance.”
Pro Tip: Tom Silva, This Old House general contractor, warns that vague plans lead to budget surprises: “Ninety-eight percent of the time, allowances are too low.” For example, you may have had a glass-tile backsplash in mind, but your contractor’s bid was for ceramic. The cost of change orders midstream isn’t just the difference in item price—it’s also time lost to project delays and communications glitches.
12. Consult an Architect Selectively
An architect’s expertise is helpful for remodeling projects, but a full architectural commission, which can include inspections, sketches, and tailored guidance, isn’t always necessary or cost-effective for smaller renovations. Consider a one-time design consultation instead.
13. Tap Your Contractor’s Knowledge
Ask your contractor about alternative materials you can use for your project, efficient construction methods, or potential issues they foresee with your plans. Contractors are usually happy to share their expertise, and have relationships with suppliers that may be able to get you better prices on certain materials. They might also know about sales or overstock items that could work for your project.
14. Bring in Natural Light Without Adding Windows
Natural light can transform a space, but new windows can be expensive and structurally challenging. Consider alternative methods to increase natural light, such as installing a “light tube,” which funnels natural light from the roof into living spaces.
You can install these tubular skylights, which don’t require much structural change, between roof rafters. They can brighten up windowless bathrooms, hallways, and other dark areas of your home.
15. Plan with Stock Sizes in Mind
Consider whether standard material sizes will work as part of your remodel. Custom fabrication can be much more expensive. This principle applies to windows, doors, and other building materials.
16. Consider DIY for Simple Tasks
Complex projects are best left to professionals, but there are many simple tasks that homeowners can tackle themselves. Painting, demolition, and some basic carpentry work are feasible for do-it-yourself enthusiasts. Attempting tasks beyond your expertise can lead to costly mistakes and potentially dangerous situations, though, so be sure you know what you’re doing.
Know Your Limits: Robert Degni, owner of RAD General Contracting in New York City, says even drywall is within reach for many homeowners. “Deciding whether to hang your own drywall comes down to three things: location, patience, and expectations,” says Degni. Sheets are relatively easy to hang, but finishing with tape and joint compound can be tricky—so if you go it alone in a visible living area, be ready to spend time sanding surfaces totally smooth.
Pro Tip: Tom Silva, This Old House general contractor, advises homeowners to focus their sweat equity where it counts most: “If you want to save money, dig in and start helping out. You can insulate, you can paint, you can sand.” He also suggests handling daily cleanup yourself instead of paying the crew for it. “Instead of paying someone to pick up sawdust off the floor, put your money into the time it takes to trim the window properly,” he advises. That alone can save about 3 to 5 percent of your overall job cost.
17. Don’t Move Plumbing Fixtures
Try to keep plumbing fixtures in their original locations when you’re remodeling kitchens and bathrooms. Moving a toilet, sink, or bathtub requires extensive plumbing work, which can quickly inflate your budget. If your new layout absolutely requires moving a fixture, take the opportunity to upgrade the pipes too. This will add to your upfront costs, but it can prevent future issues and eventually save you money.
18. Donate Usable Materials
Invite your local Habitat for Humanity chapter to your home to remove reusable materials and fixtures before you begin demolition. This will keep usable items out of landfills and amount to a tax deduction for your donation.
19. Repurpose Existing Elements
Repurpose as many existing elements in your home as you can. You can turn old doors into headboards, for example, or give kitchen cabinets a new life in a garage or basement storage area. This approach saves money and adds character and history to your remodeled space.
