19 Ways to Cut Costs on Your House Remodel

How to Renovate a House

There's a good chance you have home improvement plans in the near future, whether you just closed on a fixer-upper or you're looking to update the house you've lived in for 20 years.

A well-thought-out plan will set you up for success, for both small remodeling projects that change or update the look and function of a space or larger renovations, which might involve knocking down walls. Even a small repair or home improvement task, like annual maintenance on your HVAC system, will benefit from some planning and consideration of the scope and cost of the project.

Here's a checklist for renovating your home:

Ask Yourself: Why Are You Remodeling?

Before you start drawing up plans for an addition to your house or a major kitchen conversion, identify the reason behind your home improvement project: Does your plumbing need an update? Are you looking to convert a room to more usable space? Are you simply ready for a change? Understanding your motivation behind the project will give you a better idea of how to apply your budget and prioritize tasks as well as whether you should tap professional help.

Here are five primary reasons you may want to remodel your house:

Maintenance.

Update rooms.

Try out new styles.

Get ready to sell.

Improve efficiency.

Maintenance. Whether the house is five or 105 years old, maintenance is required to keep everything working smoothly. Especially if your house is decades old, you'll likely find the electrical, plumbing and even the foundation may need a little love to maintain a safe, stable structure for you and your family.

A renovation project driven mainly by the need for maintenance will likely mean the majority of the budget goes toward hiring licensed professionals and replacing dated materials. Depending on where you live, extensive work on the structure or electrical or plumbing systems may require permits and an inspection.

Update rooms. The plumbing may still be OK, but a 1980s kitchen might be an eyesore. Plenty of homeowners remodel to bring a space out of decades past and into current times.

For a kitchen or bathroom, much of the renovation budget may go toward new appliances. These updates may also involve high-cost materials like marble, new tile and custom cabinetry.

As a result, consider splitting your budget between updating the function and the appearance of the room.

Try out new styles. You may have redone the living room 10 years ago, but those beige walls now make your stomach churn. So your remodeling project may simply aim to bring your home in line with current interior design trends. In many cases, this might be a small remodeling job, so the budget can be dedicated to paint, furnishings or other decorative materials.

Because trends are, by definition, fairly short-lived, avoid taking on a major renovation purely for the sake of embracing a new trend. Stephen Pallrand, owner and president of Home Front Build, a design-build and renovation company based in Los Angeles, recommends keeping the original style of the house's architecture in mind. "The mistake a lot of people make is you walk into a Spanish colonial or even Craftsman house, and then you see a 1990s Home Depot kitchen or a modern kitchen," he says.

Get ready to sell. Homeowners who are prepping their house for the market may need to make minor repairs, give rooms a fresh coat of paint or install a trendy backsplash to appeal to buyers when they tour the property.

When selling is the goal, home improvements are aimed at maximizing the return on investment. There's no need to install a state-of-the-art kitchen when many homebuyers want to customize it to their needs; restained cabinets and a new countertop may be enough to freshen up the space for sale.

Improve efficiency. Many homeowners are looking to do their part to reduce energy waste and their utility bills by making energy-efficient upgrades. These may include adding solar panels to the roof, insulation inside the walls or a smart thermostat.

Decide What You're Remodeling

Some rooms are more likely to see changes every few years, while other areas of your house, like your roof, may not need to be replaced for 30 years.

If you're looking for inspiration or are curious to know whether your plans for renovating are considered out of the box, here's a breakdown of some of the most popular home improvement projects.

Maintenance. In Houzz's 2021 study of renovations in the U.S., 47% of more than 75,000 surveyed homeowners reported that they're actively engaged in projects to repair issues in their homes.

Popular maintenance-related projects include:

Plumbing.

Electrical.

Automation.

Roof.

Heating and cooling.

Water heater.

Ventilation.

Insulation.

Structural or foundation upgrades.

Updates to rooms. It's no surprise that kitchens and bathrooms are the most popular remodeling projects. The Houzz study reports 27% of surveyed homeowners renovated or added to their kitchen in 2020, while 25% renovated or added a secondary bathroom and 21% renovated or added a primary bathroom.

Homeowners aren't just looking for a fresh, customized look in the common areas of the house – they're focusing on the more personal areas as well. On average, homeowners renovate three rooms at a time, says Marine Sargsyan, senior economist for Houzz.

Popular room updates include:

Kitchen.

Guest bathroom.

Master bathroom.

Living room or family room.

Master bedroom.

Outdoor living.

Dining room.

Home office.

Master closet.

Apply for Permits

Depending on where you live and the scope of your work, you may need to apply for a permit for any work you do through your city, township or county. Permits are most often required to ensure work is completed properly to avoid posing a threat to you and your neighbors in the future. Structural work on a home, like an addition, significant electrical work and major plumbing changes, are examples of some of the most common permit-required work.

Many cities offer permit applications online, though others will have people visit in person at city hall or the local planning office.

When you apply for a permit you may need to pay a small fee as well. Depending on the project, you may need blueprints or other formal plans to obtain your permit. Many general contractors oversee the permitting process on behalf of their clients, but you should clarify this detail before signing a contract – a miscommunication on who is responsible for permits can slow down the renovation process significantly.

Find Inspiration From Styles and Trends That Appeal to You

Even if your renovation is motivated by a repair or preparation to sell your house, envision what the finished space will look like and what styles or trends will appeal to you or a would-be buyer. Start by getting an initial feel for the project by looking online, says Leah Tuttleman, an interior designer certified by the American Society of Interior Designers and corporate designer for Re-Bath, a full-service bathroom remodeling brand.

"Always do a little bit of research on your own to understand what your style is that you gravitate towards," she says. It's not just about knowing what you want the room to look like, but realistically taking your budget into account as well.

Know that if you fully embrace a current style or trend – whether it's the farmhouse-chic look or a minimalist, modern aesthetic – it may eventually look dated, simply because styles evolve and trends fall out of favor.

Whether you're looking to update a room or incorporate a few trendy pieces, there are some areas where it's easier to embrace a trend than others. Here are a few examples:

Lighting. You always have the option to make permanent lighting changes or simply add lamps throughout a room. Recessed lighting is currently popular and considered a classic, long-lasting look, although track lighting, which many now consider dated, may have once held the same appeal.

Color. Embrace the hottest colors of the year – Pantone's colors of 2021 are Ultimate Gray and Illuminating, a shade of yellow – by painting your living room walls or buying an accent pillow. Trade out the dark-stained wood floors of the 2010s for a lighter or varied stain option. Paint your front door to make it pop. Bring in a multicolored rug to infuse some life into your guest bedroom. Color trends change annually and month to month, and they're fortunately fairly easy to implement and switch out in a room.

Furnishings. The simplest, least permanent way to bring in a current style or trend is with furnishings. Lamps, couches and a coffee table in the midcentury modern style may be exactly the look you're going for now, while midcentury modern wallpaper will likely be a change you'll regret in a couple years.

Determine Your Budget

Know how much money you have to make renovations before you start your project, and research your options to get a better understanding of how much certain upgrades, materials and changes cost.

Among homeowners who renovated in 2020, 23% reported staying on budget was a challenge, according to the Houzz report. Most projects also end up costing a hefty sum – 65% of renovation projects in 2020 were over $10,000.

Homeowners are taking on plenty of small-scale projects around the house as well. Projects under $5,000 made up 19% of the share of renovations among surveyed homeowners in the Houzz study.

Here's how you may choose to fund your remodel:

Cash. Most homeowners don't want to take on additional debt to fund their home updates or renovations. In fact, 83% use cash from savings, according to the Houzz report. Necessary renovations for system updates or, say, a water heater breakdown are often considered good reasons to tap a rainy day fund.

When using savings, however, be sure to budget accurately from start to finish on the project. You don't want to get halfway through a bathroom remodel and run out of money, leaving your bathroom unusable for the next six months while you save.

Financing options. For major renovations and home rehabilitations, financing the updates will likely get you to project completion faster. You have the option to take out a home equity loan , which allows you to borrow an amount based on your home's value – specifically, the equity you currently have in it based on how much of the mortgage you've paid off.

Home equity loans are a great option for home improvement projects because they can increase the value of your property, but borrowing for frivolous spending can lead to financial problems down the road. Only borrow what you feel confident you can pay back over time.

Credit card. The Houzz report notes the use of credit cards to fund a home renovation made up 29% of renovating homeowners' responses in 2020, a drop from its peak in 2019 of 35%. In the short term, placing the cost on your credit card can be a helpful way to take advantage of available credit, but it can quickly lead to problems in the form of added interest or long-term financial struggles should you default on your credit card payments.

Determine the Scope of Your Project

Budget is typically the deciding factor on the scope of your project – whether you'll be installing a new shower or changing the layout of the toilet, sink and shower as well, which can cost thousands more.

Plumbing and drains are often a major cost in bathroom and kitchen renovations and can be a limiting factor.

Plans to remove a wall or otherwise adjust the structure of your house can also cost you. HomeAdvisor reports that removing a non-load-bearing wall can cost as little as $300, while a wall that plays a supporting role in a two-story house can cost as much as $10,000.

The bigger your project, the more time you can expect it to take as well. A major renovation can take weeks or even months, and you have to factor in the level of inconvenience if you're still living at home during the renovation, or the cost of living elsewhere temporarily.

Approach the planning process carefully, and don't rush into demolition or upgrades without a solid plan from beginning to end.

Choose to Hire a Professional vs. DIY

If you have a limited budget, you may be hoping to take on a DIY home renovation. Home improvement tasks can be fun, rewarding and far less expensive than hiring a professional, but keep your level of expertise in mind as well as the amount of skilled work the project requires.

Many municipalities require permits for electrical and plumbing work, and those permits often require a licensed professional to at least sign off on the work if not complete it entirely. Even if it's a simple repair, leave any project that could potentially harm you or the house to a professional.

Pick Out Materials

Whether it's paint brand and color, appliances, cabinets or flooring, you'll have quite a few decisions to make when it comes to the materials you'll use in your home renovation.

The biggest driver for your materials choices will be your budget. There are lower-cost and luxury options for every kind of material you may need, but you'll also want to weigh how the space will be used when determining where to splurge and where to save. High-end materials may be ideal for a room or item that you'll use and notice every day, while you may be able to save with lower-cost materials for details that are less important for daily life.

Demolish the Space

When working with a contractor, you may be able to save a bit of money by offering to demolish the existing room on your own. However, it's important to keep in mind that demolition is a very small portion of the total cost – roughly 6.25% for a bathroom, according to home improvement information site Fixr's report on bathroom remodels.

Demolition may be a bit more involved than you think as well. It's important to know the location of plumbing, electrical wiring and studs before you send a sledgehammer through a piece of drywall.

Begin Remodeling

At last, it's time to begin transforming the space into the room you've planned. If you've hired professionals, it's best to let them take control – a general contractor will oversee subcontractors doing specialized work, whether it's electrical components, tile installation or a buildout for custom cabinets. You've hired experienced hands for a reason, so don't micromanage.

"Not everything seems logical to an inexperienced eye," Tuttleman says. It's important to allow a hired project manager – whether it's the general contractor or interior designer – to be in charge of ensuring everything gets done as efficiently as possible. More sound advice: Avoid last-minute change requests and be clear on your expectations from the start.

By the point that either you or contractors are working on the space and installing anything from walls to appliances, you want to feel confident about the style and material choices you've made. "That should take serious consideration, because once things are ordered, you have almost no ability to return anything," Tuttleman says.

Have Required Inspections Completed

If your renovation involves any major electrical, plumbing or structural work, there's a good chance your local municipality will require an inspection to approve the permitted work. This inspection ensures the work was done properly and won't be a danger to the home or anyone in it.

A beginning-to-end general contractor will often handle the permit application and inspection scheduling process as part of the total cost of the project, though that is something you should clarify in advance. Otherwise, you are responsible for providing the paperwork in advance and scheduling the inspection. For some work, like plumbing, the inspection must be conducted before walls are installed to cover up the pipes, so be sure you don't skip this key step in the renovation process.

Add Finishing Touches

Finally, you've completed the more labor-intensive work and are able to assemble the space with furniture and decor. In a kitchen or bathroom, this often involves merely stocking the drawers, shelves and cabinets with the items you normally keep in the space. For a living room or bedroom, you're moving furniture around, placing art and finding the best spot for tabletop accessories.

How to pay for home improvements

Whether you are preparing to sell your home or you just want a refresh for a new season, a home project is a big undertaking. One of the biggest questions you may ask as you plan any home renovation is how to pay for it.

Thinking ahead about how to finance your home project is essential for avoid added costs and future financial problems. You could pick from several choices to pay for your home project depending on your financial status and goals. Consider all your options to make the best decision for your financial future.

Deciding if you should finance your home renovation

How you pay for your home renovation depends on your financial situation and the size of the project. Saving up for a specific project and using those funds is the ideal way to pay for a home upgrade. However, that isn’t always possible. Emergency expenses and larger renovations can make financing necessary.

To determine whether home improvement financing makes sense, consider the following:

What is your monthly budget and are you able to make another payment?

How big is the project?

Will the project increase the value of your home?

How long will the renovation take?

If you’re in good financial health and the project will boost your home’s value, the extra cost of financing could be worth it. However, you should be aware of roughly how much a planned project will cost before deciding to take the plunge.

The average cost of a home renovation project in the U.S. is $15,000. This average applies to any given project, but you can get a better idea of the costs based on

Average cost of common home improvement projects:

Whole house renovation: $15,000 to $200,000

Adding a room: $135,000 to $282,000

Remodeling a bathroom: $20,000 to $38,000

Renovating a kitchen: $23,000 to $135,000

Garage remodel: $7,000 to $15,000

Adding a deck: $19,596

Home improvement projects, while expensive, are often worth it if they increase the value of your home. On average, homeowners recoup 74 cents for every dollar they spend on home improvement when it comes time to sell.

Some of the best renovations for resale value include:

Landscaping/curb appeal

Adding square footage/ expanding the home

Adding a double sink bathroom vanity

Adding a kitchen island or walk-in pantry

Adding a home office

Expanding your outdoor space

7 best ways to finance home improvements

Home improvement projects can be expensive and often require financing. Luckily, several options are available to help you find the best option for your situation.

1. Save

The safest financial option to pay for your home renovation is to save a chunk of money for your project. If you don’t already have a large sum of money saved, this option can mean waiting longer to start your project. But, it also means you won’t have to worry about paying back a loan or large credit card bill once you finish your home renovation.

The amount you need to save depends on what type of renovation you’re doing and the scope of the project. If you’re looking to finance the whole project by saving, it might be smart to start small and take on less expensive projects first. This will ensure that you don’t get in over your head and wind up spending more than you intended.

19 Ways to Cut Costs on Your House Remodel

Busting the budget is everyone's biggest fear when it comes to home remodels. And with good reason.

Even if you follow the essential advice we've been doling out for years—build in a 20 percent cushion to cover the nasty surprises, get contractor references and check them, banish the words "while you're at it" from your vocabulary—it's hard not to end up shelling out more than you want to.

With some strategic thinking about design, materials, and timing, you can cut costs without cutting corners. Below, we'll show you the ways, from the big to something as small as choosing a wall sconce over a recessed light.

But another universal truth about home improvement is that every little thing adds up. So another important consideration to start with is to decide whether or not to demolish the whole house and start from scratch.

Is it Cheaper to Remodel or Build a New House?

“Most clients don’t want to hear those words,” says Paul Irwin, design director with Landis Construction, in the Washington, D.C., area, “but it really needs to be considered on major remodels. “In one case, for example, 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 reproduce it new. “For a relatively small additional cost,” says the owner, “we get all the benefits of new construction while preserving the character and feel of our old house.”

Cost to remodel: $570,000

$570,000 Cost to replicate: $588,000

$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.

Related Renovations That Give You a Return on Your Investment

19 Ways to Save on Your Home Remodel

If you’ve weighed your options, and have decided it’s better to remodel your home, here are our tips.

1. Increase Efficiency, Not Size

If you can reorganize and equip your kitchen for maximum utility, you may not need to blow out the walls to gain square footage. Start by replacing space-hogging shelves with cabinet-height pullout drawers 8 inches wide, containing racks for canned goods and other items.

"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.

You could easily shell out a few thousand to outfit cabinets with upgrades like dividers, pull-out pot trays, and lazy Susans, but you'll save many times that amount by skipping the addition you thought you needed.

Cost to expand kitchen by 200 square feet: $48,000 to $95,000

$48,000 to $95,000 Cost of super-efficient, custom-designed cabinets: $35,000

$35,000 Saved: Up to $60,000

2. Bring in Natural Light Without Adding Windows

Before cutting a big hole in the side of your house and rearranging the framing, consider less invasive—and less expensive—ways of capturing light.

To brighten up a windowless bath or hallway, for instance, you can install a "light tube," which slips between roof rafters and funnels sunshine down into the living space.

Cost to add a double-pane insulated window: $1,500

$1,500 Cost for a light tube: $500

$500 Saved: $1,000

3. Hit the Recycling Center

Do-it-yourselfers can reap big savings with recycled or lightly used fixtures and building materials. Habitat for Humanity operates about 400 ReStores nationwide, which offer salvaged materials at half off home-center prices.

One caveat: Many contractors won't work with salvaged items, or homeowner-supplied materials in general, because they don't want to assume the liability if something goes wrong.

That said, if you're doing your own work, you can find anything from prehung doors to acrylic skylights to partial bundles of insulation. (To find a ReStore near you, visit

Price of 4-by-5-foot insulated window in a home center: $600

$600 Price at ReStore: $300

$300 Saved: $300

4. Donate your Trash

Before you begin a remodeling job, invite the local Habitat for Humanity chapter to remove materials and fixtures for later resale. "About 85 percent of a house is reusable," says B.J. Perkins, Habitat's ReUse program manager, in Austin, Texas. "We can do a total takedown, or do a cherry-pick job and take the cabinets, the tub, the sink, and so on."

You save space in the landfill, collect a charitable tax credit for the donation, and help a good cause. Visit Habitat to find an affiliate near you.

Cost to trash a suite of bathroom fixtures: $50 to $75

$50 to $75 Cost to donate: Nothing, plus you get a tax deduction

Nothing, plus you get a tax deduction Saved: Space in the landfill (and a little bit of your soul)

5. Do Your Own Demo

Knocking down your home down may not be as costly as rebuilding, you can still shave dollars by doing some of the demolition yourself—as long as you proceed with care.

"If a homeowner wants to demo a deck, well, I am sure they can handle that," says Michael Winn, owner of Winn Design, in Virginia. "But when it comes to interior spaces, I would dissuade them from doing it unless they have done it before."

The reason: A reckless wrecker might unwittingly take out a load-bearing wall or, worse still, plunge a reciprocating saw into live wiring or pressurized plumbing.

Cost to demo a 200-square-foot deck yourself: $450 (Dumpster rental and parking permit)

$450 (Dumpster rental and parking permit) Cost for a pro: $1,000

$1,000 Saved: $550

6. Consider Long-Term Costs, Not Just Short-Term Gains

If your addition calls for clapboard siding, for instance, you can save more in the long run by ponying up now for the preprimed and prepainted 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 ten 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 ten years, easily."

Cost of unfinished siding for a 10-by-40-foot addition, plus two paint jobs: $5,000

$5,000 Cost for pre-finished claps and one coat of paint at installation: $3,750

$3,750 Saved: $1,250

7. Tap Your Contractor's Sources

When it comes to things like flooring, ask your subcontractor if he has odds-and-ends stock left over from other jobs. While renovating a Civil War-era bed-and-breakfast in New Jersey some years back, contractor Bill Asdal needed wood flooring.

He made a few phone calls and came up with hundreds of square feet of hardwood, in various lengths and widths, that otherwise would have gone into the trash on other job sites. Just by planing it to uniform thickness, then sanding and refinishing it, he saved his client almost $9,000 in materials costs.

Cost of new flooring: $19,200

$19,200 Cost to use someone else's discards: $10,500

$10,500 Saved: $8,700

8. Consult an Architect

Depending on the scale of your project, you might not need a full-on architectural commission, which involves extensive meetings, multiple job-site visits, and several sets of construction drawings, to the tune of about 8 percent of a project's construction budget. You might be able to tap an architect's design savvy by having him undertake a one-time design consultation.

For example, for a $400 flat fee, Baton Rouge architect Kevin Harris will meet with a homeowner, examine the problem, and sketch out a few solutions that could be as simple as opening up a partition wall or moving a door. The homeowner can then give the sketch to a builder or take it to a drafting service, which will charge about $1 to $1.50 a square foot to crank out formal construction drawings.

Architect's fee to design a 300-square-foot home office: $2,250

$2,250 Fee for design consultation only and plans: $580

$580 Saved: $1,670

9. Partner With a Contractor

Though the practice is controversial among the trades, some contractors will offer consulting and mentoring services to skilled do-it-yourselfers on an hourly basis.

Chicago-area builder Ted Welch charges $150 per hour for such coaching, with a two-hour minimum commitment. "The most satisfied clients tend to be those who have good manual dexterity, who realize that skills need to be practiced in order to be perfected, and who are willing to risk making a few mistakes and then learn from them," he says.

Cost to drywall one room: $1,000

$1,000 Cost with DIY consultation: $300 (2 hours of coaching), plus materials

$300 (2 hours of coaching), plus materials Saved: $700

10. Make Sweat Equity Count

Unless you've got loads of time (and expertise) to spend on your project, the best way to add sweat equity is up front, by handling your own demolition, or at the back end, by doing some of the finish work yourself.

"If you want to save money, dig in and start helping out," says Tom Silva. "You can insulate, you can paint, you can sand." Or better still, he says, help with cleanup every day. "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.

Cost for construction crew to handle cleanup: $200 per day

$200 per day Cost to do it yourself: $0

$0 Saved: About 3 to 5 percent of the overall job cost

11. Do Your Own Schlepping

If you're doing your own project, slash your materials-delivery fees by picking up goods yourself. No pickup truck? For about $400, you can purchase a nearly new single-axle utility trailer online, which you can tow behind your SUV. Get one just big enough to carry 4-by-8 sheet goods flat. Use it for a half-dozen trips, and it's paid for itself. Find trailers for sale near you via eBay Motors, or try your local classifieds.

Cost of 10 deliveries: $750

$750 Cost to buy a used trailer: $400

$400 Saved: $350, plus you get to keep (or sell) the trailer

12. Don't Overspend on Wall Prep

If your walls are in such rough shape that it would take a painting contractor days of filling and sanding to make them ready for the roller, consider using materials such as Texturglas, from Deerfield Beach, Florida—based company Roos International.

A breathable, nontoxic wall covering made of fine glass filaments, Texturglas has a similar look and feel to the fiberglass matting used in auto-body work. It's available in a variety of surface patterns, takes paint readily, and is designed to be installed right on top of existing surfaces, adding strength while covering up dings.

Cost to patch and paint a 15-by-20-foot room with heavily damaged walls: $1,525

$1,525 Cost to install Texturglas: $1,050

$1,050 Saved: $475

13. Consider Look-Alikes

Some imitations just make sense: Lumber giant Weyerhaeuser sells a fast-growing natural eucalyptus hybrid under the brand name Lyptus. Sustainably harvested in plantations in Brazil, the clear-grained hardwood looks and feels remarkably like mahogany. It's sold as toungue-and-groove flooring and in planks and sheets for cabinetry and millwork.

Cost of 100 board feet of mohogany: $808

$808 Cost of same quantity Lyptus: $395

$395 Saved: $413

14. Wait Until Contractors Want Your Business

Don't schedule your reno in the height of summer or between September, when the kids go back to school, and Christmas. "That's premium time," explains Lisa Stacholy, owner of LKS Architects, in Atlanta, Georgia. Suppliers tend to be busier, labor scarcer, and deliveries slower. One Virginia-based contractor offers discounts of between 4.5 and 5.5 percent (depending on the overall budget) on projects during his down time, right after the new year.

Cost of a major bathroom remodel in peak season: $25,000

$25,000 Cost in January: $23,625

$23,625 Saved: $1,375

15. Skip the Foundation

If local code allows, you may be able to support a small addition on posts and beams, as you would a deck, explains contractor Dennis Gavin, of Gavin Design-Build, in Media, Pennsylvania.

220-square-foot addition with poured foundation: $40,000

$40,000 Same-size addition on posts and beams: $35,000

$35,000 Saved: $5,000

16. Don't Move the Kitchen Sink

Or the toilet, if you can avoid it. "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 requires that you move the toilet, use the opportunity to upgrade the pipes at the same time. "That will save you money in the long run," says Richard.

Cost to move toilet more than 3 feet: $500-$1,000

$500-$1,000 Cost to leave in existing location: $0

$0 Saved: Up to $1,000

17. Plan with Stock Sizes in Mind

"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. The same applies to stock windows and doors: Use manufacturers' off-the-shelf dimensions from the outset and you will save the premiums of custom fabrication.

Cost of custom doors: $1,500-$2,500

$1,500-$2,500 Cost of standard doors: $500-$800

$500-$800 Saved: Up to $2,000

18. Buy Building Supplies at Auction

Brian Peppel, a homeowner in Phoenixville, Pennsylvania, attends one building-supply auction each month in nearby Lancaster County. His recent finds include two pallets of concrete block for $10 and a solid-wood prehung exterior door for $65.

"Their inventory is everything under the sun, a lot of scratch-and-dent, misordered custom items, or new overstock supplies," reports Peppel. He once watched the auctioneer's gavel fall on a large, custom-made triangular window with an original retail value that he pegs at several thousand dollars. The winning bid? $1.

Cost of solid-cherry wall cabinet at a home center: $300

$300 Cost at building-supply auction: $10

$10 Saved: $290

19. Make Decisions Early

Start prowling the aisles at the hardware store or home center way before the wrecking crew shows up. Get a good feeling for what you want in fixtures and appliances and what they cost.

If you aren't absolutely specific up front about what you want, you'll have to rely on your contractor's estimate, called an allowance, and his notion of what is acceptable may be quite different from yours. "Ninety-eight percent of the time, allowances are too low," says Tom Silva. For instance, you may have had a glass-tile backsplash in mind, but your contractor's bid was for ceramic.