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According to HIRI, the home improvement industry is worth $220 billion per annum and this figure is likely to rise. Home remodelling Google searches have more than doubled from 2020 to 2021. The reason for this increase is that coming out of the pandemic, low-interest rates coupled by homeowners staying inside their home more than they did in the past.

It is safe to say that home improvement trends have changed drastically. In this article, Dollar Hand presents 5 top ways to save money on your home improvements!

 

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Top 5 Tips to Save on Home Improvements

 

1. Set a budget and stick to it.

 

One of the biggest mistakes homeowners make when renovating their property is failing to set a budget. By not having one in place before you begin work, you’ll often end up spending more than you originally intended. Be sure to take time to figure out how much you can afford and create a budget for your renovation project.

According to the US Census Bureau, 76% of homeowners aren’t traveling in 2021. This statistic revealed that many people in the US aren’t planning on traveling this year. This leaves more time for DIY projects for homeowners and time to build consumer confidence in brands that deal with the construction industry, disaster repairs, system upgrades, and remodelling, and if you are careful, it can all be done within your budget!

 

2. Make an effort to save on the cost of materials.

 

Another area where homeowners get in trouble is that they spend way too much on material costs. For example, you can buy recycled or reused building materials, which will help cut down on your costs. Even better, some of these reused materials are in excellent condition, so you’ll get a good bargain on more high-end items.

Home Depot is a popular source of materials for home renovations! Home Depot made $110.2 billion in the last fiscal quarter of 2020. Home Depot is the most popular home improvement retailer in the US and has surpassed fiscal expectations amid the pandemic. This is $12 billion more than they made in 2018 where they made $97.3 billion in that fiscal year.

You can also check Craigslist, eBay or Freecycle to find free or cheap materials online. Many people are often literally giving this stuff away on these sites, so take advantage while you can.

 

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3. Try to pay in cash for materials and contractor expenses.

 

This is a tried-and-true idea and it works wonders when attempting to cut down on renovation expenses. You’ll be able to save a significant amount by offering to pay cash for your materials and contractor fees for a couple of reasons. First, by paying cash instead of using credit, you can avoid the possibility of paying hefty interest charges. Second, sometimes contractors will give their customers a price break when you offer to pay cash for their services.

Interestingly, only 39% of homeowners in the US will currently pay for their home improvement projects in cash.

You obviously want your home renovations to look amazing; however, that doesn’t mean you have to pay top dollar for the most expensive contractors in your area. You can shop around and get multiple bids from as many contractors as you see fit. This will help you find a top-notch and inexpensive contractor that meets your needs.

 

4. Sell any working appliances that you intend to replace – reuse as many materials as possible!

 

Do you own a refrigerator that’s in good working order? How about a well-used stove that’s still in good condition? Instead of throwing these valuable items away when you replace them, you could list them on Craigslist, eBay or the Facebook Marketplace. You never know what someone may want to purchase. Selling your old, but working, appliances could help you recoup some of your renovation expenses and lower your costs at the same time.

Instead of letting certain materials go to waste, feel free to reuse them whenever you can get away with it. This is a great way to save money without going over your budget or breaking the bank. For example, you may be able to reuse some of your cabinetry and appliances without replacing them.

 

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5. Make sure to shop around when hiring help for home renovations.

 

You obviously want your home renovations to look amazing; however, that doesn’t mean you have to pay top dollar for the most expensive contractors in your area. You can shop around and get multiple bids from as many contractors as you see fit. This will help you find a top-notch and inexpensive contractor that meets your needs.

If you’re renovating your kitchen and putting in brand-new appliances, you should always wait for them to go on sale. Of course, this only works if you aren’t under any time constraints, but instead of buying an appliance on a typical Wednesday, you could wait until a big Fourth of July sale is happening. You’ll save a lot of money this way, so take advantage of these excellent opportunities.

 

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Overall, homeowners undertake home improvement to make residential properties more comfortable, upgrade air conditioning and heating systems, waterproof roofs and basements, soundproof rooms, and to extend their homes and boost energy savings.

The U.S. home improvement industry is stronger than it has been in over ten years and encompasses the sale of building materials, appliances, décor, and other home enhancements, and the services offered by contractors, tradespeople, and other workers who help to build, install, modify, and upgrade homes. The business of homeownership represents a significant portion of the U.S. economy.

With a nationwide shortage of housing and record-high home prices, more homeowners prefer to stay in their properties versus move or upgrade to new ones.

It’s possible to save money on your upcoming renovation. You just have to be willing to do things a little bit differently than most people. Take advantage of sales when the opportunities arise, hire good but inexpensive contractors to help with the renovations and use the rest of these tips to the best of your ability in your pursuit of saving money!

Daniel Tannenbaum

Daniel is one of the co-founders at Dollar Hand and has worked in the consumer finance industry for over 15 years.

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