Home renovation costs can quickly spiral out of control, but with strategic planning and smart decisions, you can significantly cut your costs without compromising quality.
This comprehensive guide offers 18 practical ways to save money on your house remodel, from maximizing existing space to finding creative ways to source materials. Whether you’re planning a minor update or a major overhaul, these cost-saving techniques will help you get the most value out of your remodeling project.
1. Run the Numbers: Is It Cheaper to Remodel or Build New?
Before diving into any renovation project, carefully evaluate your needs and goals. This initial assessment will help you determine the scope of your remodel and set realistic expectations for both the process and outcome.
One of the first questions to consider is whether remodeling or building new is more cost-effective for your situation. While remodeling can often be less expensive, there are cases where starting from scratch makes more financial sense.
“Most clients don’t want to hear those words, but it really needs to be considered on major remodels,” says Paul Irwin, design director with Landis Construction in the Washington, D.C. area. In one case, for example, the plans for a 1,300-square-foot addition revealed that the house’s existing foundation wasn’t up to code and would have to be replaced—a $30,000 proposition.
After crunching the numbers, the owners concluded that it would cost as much to update the house, a former summer cottage, as it would to build it new.
- Cost to remodel: $570,000
- Cost to replicate: $588,000
- Saved: For $18,000, the owners gained as much as $60,000 worth of new living space, plus improved safety and energy efficiency.
“For a relatively small additional cost, we get all the benefits of new construction while preserving the character and feel of our old house,” the owner says.
When weighing your options, consider factors such as your home’s current condition, local building codes, and long-term value. Sometimes, the cost difference between remodeling and building new can be surprisingly small, especially when factoring in improved energy efficiency and modern building standards.
2. Create a Realistic Budget
Once you’ve decided to remodel, create a realistic budget. Start by researching average costs for similar 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.
When creating your budget, consider both short-term costs and long-term savings. For instance, investing in energy-efficient appliances or high-quality materials might cost more upfront but can lead to significant savings over time. Also, be sure to account for often-overlooked expenses such as permit fees, temporary housing if needed, and post-renovation cleaning.
3. Increase Efficiency, Not Size
One of the most cost-effective ways to improve your home is to make better use of the space you already have. By focusing on efficiency and organization, you can often achieve your goals without the need for expensive additions or major structural changes.
Before considering an expansion, look for ways to maximize your current floor plan. This can save you thousands of dollars while still improving your home’s function and appeal.
For example, replacing space-hogging shelves in the kitchen with cabinet-height pullout drawers equipped with racks for canned goods and other items can significantly increase storage capacity.
“You’re getting three or more horizontal planes where you might otherwise get only one,” says Louis Smith Jr. , an architect with Meier Group in Ann Arbor, Michigan. This strategy not only saves space but also improves accessibility and organization. By optimizing your existing layout, you might find that you don’t need that costly addition after all.
4. Reorganize Kitchen Storage
The kitchen is often the heart of the home and a prime target for remodeling. However, 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 for storing baking sheets and cutting boards. These relatively inexpensive upgrades can make a world of difference in your kitchen’s functionality. Additionally, look into space-saving appliances that can free up valuable counter and cabinet space.
5. Consider Long-Term Costs
Choosing the right materials is crucial for both the aesthetics and durability of your remodel. However, high-quality materials don’t always have to come with a hefty price tag. With some savvy shopping and strategic thinking, you can find excellent materials at a fraction of the cost.
When selecting materials, look beyond the initial price tag and consider long-term costs and benefits. Sometimes, spending a bit more upfront can lead to significant savings over time. For example, if you’re installing clapboard siding, you can save more in the long run by ponying up for the pre-primed and pre-painted variety. It costs an extra 10 to 20 cents per foot, but “you’ll wind up paying for half as many paint jobs down the road,” says Paul Eldrenkamp, owner of Byggmeister, a design-build remodeling firm in Newton, Massachusetts.
The reason? Factory finishes are applied on dry wood under controlled conditions—no rain, no harsh sun. “I used prefinished claps on my house about 10 years ago and the only flaw in the finish is the occasional mildew spot, easily washed off,” Eldrenkamp says. “The paint looks as if it’ll be good for another 10 years, easily.”
6. Shop at Recycling Centers
Recycling centers and salvage yards can be goldmines for budget-conscious remodelers. Habitat for Humanity operates over 1,200 ReStores in North America, offering salvaged materials at half-off home-center prices. (To find a ReStore near you, visit habitat.org.)
You can find everything from gently used fixtures to partial bundles of insulation at these centers. For example, a 4-by-5-foot insulated window that might cost $600 at a home center could be found for just $300 at a ReStore. Keep in mind that many contractors won’t work with salvaged items due to liability concerns, so this option is best for DIY projects or when working with a flexible contractor.
7. Look for Contractors’ Leftover Materials
Don’t be afraid to 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 where consistency is key.
Bill Asdal, a contractor working on a Civil War-era bed-and-breakfast in New Jersey, saved his client almost $9,000 in flooring costs by sourcing leftover hardwood from other job sites. By being creative and flexible with materials, you can achieve high-end results without the high-end price tag.
8. Attend Building Supply Auctions
Building supply auctions can be an excellent source for discounted materials and fixtures. These auctions often feature a wide range of items, from slightly damaged goods to overstock and custom-ordered items that were never picked up. Brian Peppel, a homeowner in Phoenixville, Pennsylvania, regularly attends such auctions and has found incredible deals.
For example, Peppel once purchased two pallets of concrete blocks for just $10 and a solid-wood prehung exterior door for $65. He’s even seen large, custom-made windows with retail values in the thousands go for as little as $1. While not every item will be a perfect fit for your project, the potential savings make these auctions worth exploring.
9. Donate and Recycle During Demolition
Before you begin demolition, consider inviting your local Habitat for Humanity chapter to remove reusable materials and fixtures. This approach not only keeps usable items out of landfills but can also provide you with a tax deduction for your donation.
B. J. Perkins, Habitat’s ReUse program manager in Austin, Texas, notes that “about 85% of a house is reusable.” The organization can do a total takedown or selectively remove items like cabinets, tubs, and sinks. This strategy saves you disposal costs, provides materials for those in need, and offers a potential tax benefit—a win-win-win situation.
10. Bring in Natural Light Without Adding Windows
Making intelligent design decisions can lead to significant savings without compromising the look or quality of your remodel. By thinking creatively about lighting, materials, and layout, you can achieve a high-end look on a budget.
Natural light can transform a space, making it feel larger and more inviting. However, adding new windows can be expensive and structurally challenging. Instead, consider alternative methods to increase natural light. One cost-effective solution is installing a “light tube,” which funnels natural light from the roof into living spaces.
These tubular skylights can be installed between roof rafters, requiring minimal structural changes. They’re particularly effective for brightening up windowless bathrooms, hallways, and other dark areas of your home.
At around $250 for a light tube compared to $900 or more for a double-pane insulated window, this option offers significant savings while still achieving the desired brightening effect.
11. Plan with Stock Sizes in Mind
When planning your remodel, consider standard material sizes to minimize waste and avoid custom fabrication costs. “Ask yourself, ‘Why am I building something 10 feet wide if plywood comes in 4-foot-wide sheets?'” says Lisa Stacholy of LKS Architects in Atlanta. This principle applies to windows, doors, and other building materials as well.
By using manufacturers’ off-the-shelf dimensions from the outset, you can save the premiums associated with custom fabrication. For example, standard doors typically cost between $150 and $400, while custom doors can range from $1,500–$2,500 or more. Planning your design around these sizes can save you tons.
12. Consider Look-Alike Materials
High-end materials can significantly inflate your remodeling budget, but there are often less expensive alternatives that provide a similar look and feel. For instance, instead of expensive hardwoods like mahogany, consider using Lyptus, a sustainable eucalyptus hybrid that closely resembles mahogany in appearance.
Lyptus, sold by lumber giant Weyerhaeuser, is not only more affordable but also more environmentally friendly, as it’s harvested from plantations in Brazil. The cost difference can be substantial—100 board feet of mahogany might cost $1,000 to $1,300, while the same amount of Lyptus would be around $700 to $800, according to wood supply companies we researched. By choosing such alternatives, you can achieve a luxurious look without the premium price tag.
13. Schedule During Off-Peak Seasons
The timing of your remodel can have a significant impact on both costs and the overall experience. By strategically planning when to start your project and making key decisions early, you can save money and reduce stress.
Contractors and suppliers often have busier and slower periods throughout the year. By timing your project to coincide 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. This timing could translate to significant savings on larger projects—even a 4%–5% discount can translate to significant savings on a $25,000 project.
14. Make Decisions Early
One of the most effective ways to keep your remodel within budget is to make all your 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 well in advance of your project’s start date.
By having a clear plan and specific choices made upfront, you can provide your contractor with accurate information for estimating costs. This helps avoid using allowances in the bid, which are often underestimated. As Tom Silva points out, “98% of the time, allowances are too low. ” For instance, you might have envisioned a glass-tile backsplash, but your contractor’s bid was based on ceramic tile. Such discrepancies can lead to unexpected cost increases mid-project.
15. Choose the Right Construction Method
Choosing the right construction methods can lead to significant savings without compromising your remodel’s quality or integrity. By being open to alternative approaches and carefully considering the necessity of major changes, you can reduce costs while still achieving your desired results.
For small additions, consider alternatives to a full foundation. Dennis Gavin of Gavin Design-Build in Media, Pennsylvania, suggests that if local code allows, you may be able to support a small addition on posts and beams, similar to a deck. This is remarkably less expensive than pouring a full foundation.
16. Don’t Move Plumbing Fixtures
When remodeling kitchens and bathrooms, try to keep plumbing fixtures in their original locations. Moving a toilet, sink, or bathtub requires extensive plumbing work, which can quickly inflate your budget. “That often becomes the biggest part of the plumbing-price increase,” says Richard Trethewey, This Old House plumbing and heating expert.
If your new layout absolutely requires moving a fixture, use this opportunity to upgrade the pipes at the same time. While this will add to your upfront costs, it can prevent future issues and save money in the long run.
17. Consult an Architect
While DIY projects can save money, there are times when professional advice is necessary. Knowing when and how to leverage expert knowledge can help you avoid costly mistakes and make informed decisions.
An architect’s expertise can be crucial for complex remodeling projects, but a full architectural commission isn’t always necessary or cost-effective for smaller renovations. Instead, consider a one-time design consultation. This allows you to tap into an architect’s design savvy without the full expense of a comprehensive service.
For example, Baton Rouge architect Kevin Harris offers a flat-fee consultation where he examines the problem, sketches out potential solutions, and provides guidance that homeowners can then take to a builder or drafting service. This targeted approach can save thousands compared to a full architectural commission while still providing valuable professional insight.
18. Tap Your Contractor’s Expertise
Your contractor can be an excellent source of cost-saving ideas and insider knowledge. Don’t hesitate to ask them about alternative materials, efficient construction methods, or potential issues they foresee with your plans.
Additionally, contractors often have relationships with suppliers and may be able to get better prices on materials than you could as an individual buyer. They might also know about sales or overstock items that could fit your project.
Our Conclusion
Remodeling your home is an exciting endeavor that can significantly improve your living space and increase your property’s value. By strategically planning your remodel, making smart design choices, and being resourceful with materials and labor, you can achieve excellent results without breaking the bank. Always remember to thoroughly assess your needs, carefully manage your budget, and consult with professionals when necessary.