The Renovation Reality check
Budget, bids and buffers - how to plan for a home-improvement project
Chris DiSabatino is accustomed to waiting his turn at building-permit offices. The owner of DiSabatino Design Build in Wilmington, Delaware says the demand for renovations and home improvement project has surged. One Pennsylvania township told him that it processed about five times as many permit requests in the past year as in the previous five years combined.
DiSabatino, whose company handles indoor and outdoor renovations, attributes the pace to homeowners who would rather invest in their current home than purchase a new one. The trend is not confined to just one area. The Harvard Joint Center for Housing Studies expected homeowner improvement and repair spending nationwide to reach $524 billion in early 2026, up from $507 billion in the third quarter of 2025.
While upgrading your existing home may be the less expensive option, it’s not necessarily cheap. Homeowners who define the scope, compare estimates and build in financial and scheduling cushions, however, are less likely to end up paying more – or living in a construction zone longer – than expected.
Determine the Scope
Start with brainstorming. Do you want to rip out your old kitchen entirely, or will a cosmetic makeover suffice? What is your main priority when it comes to renovating your outdoor space? In general, how are you hoping to improve your home – in functionality, aesthetics, resale value or longevity?
Elena Novak, a real estate analyst and home improvement expert at Renovate.com, recommends a prioritized wish list. “Put your ‘must-haves’ at the top and your ‘nice-to-haves’ underneath, so you can adjust the scope without feeling like the whole projet is falling apart,” she says.
A clear list of wants versus needs will help contractors recommend trade-offs – such as a smaller deck footprint or an affordable appliance package.
Research the Costs
Online estimates can give you price ranges, but costs will vary by region and, possibly, the homes’ age.
Ask contractors for itemized bids and compare apples to apples. Whatever quote you go with, experts recommend adding a 10-20% buffer for issues that can pop up once the work begins – such as outdated wiring, hidden water damage or the need to bring systems up to code (if you’ve ever watched HGTV, you know they always find something).
Remember that budgets can climb when homeowners add upgrades. One contractor said “We find that clients on the low end, will spend 10% of their total job on change orders”. Others can get so excited about the project that they end up spending double what they have budgeted.
When it comes to materials, Novak recommends prioritizing longevity, composition and performance. Balance quality with practicality: A midrange appliance package, for example, can deliver durability and style without the top-tier price tag.
Vet contractors
Interview multiple contractors, confirm licensing and insurance, and request references. Look beyond price. For instance, evaluate the contractor’s communication style – are they clear and patient when explaining things to you? Ask who is responsible for procurement, cleanup and coordination with subcontractors. Put decisions in writing.
Permits can become a project stopper if everyone assumes someone else is handling them. Confirm the details before work starts – ask “what permit is required for this job and what is the permit number?” Once issued, post the permit on site.
Secure financing
Roofing, window companies and other suppliers may offer financing plans. But are they worth it? Experts recommend to ask for the cash price and the financed price and compare the total cost.
Other standard financing options include home equity loans, a home equity line of credit (HELOC) and renovation loans. Products such as the conventional Fannie Mae HomeStyle Renovation Loan or Federal Housing Administration 203(k) loan let consumers roll repair costs into a mortgage according to a loan officer with All In Mortgage.
Plan for the Unexpected
A bathroom or kitchen remodel will affect your daily routine. You will want to set up a camp kitchen, complete with appliances such as a fridge, microwave, toaster oven and airfryer. You may also need to budget for takeout. If you’re redoing your bathroom, you’ll need to create a schedule for shower use – or find an alternate place to shower if you have just one bathroom.
Renovations will test your patience, but planning keeps them from draining your finances. Set the scope, get the bids in writing, build a buffer and expect delays – then let the professional(s) do the work. A plan won’t eliminate surprises, but it can keep them from becoming expensive ones.
