Renovations Are Costly and Difficult. Here Are 4 Tips to Negotiate With a Contractor

When you become a homeowner, getting a mortgage loan to pay the upfront price for the property is just the first step in covering your costs. Homeowners face many expenses that renters don't, from property taxes to HOA fees to home renovations.

Both remodels and repairs can be costly. Architectural Digest noted that a whole-house renovation is typically priced anywhere from $10 to $250 per square foot, while a kitchen renovation generally falls within the $100 to $250 per square foot range.

The good news is, there may be a way to keep more money in your checking account even as you make upgrades to your living space. Just follow these tips to negotiate with your contractor.

1. Know what your project should cost

It's important to have a good idea of what your project should cost so you can be realistic in trying to negotiate a price. For example, the typical kitchen renovation generally costs somewhere between $10,000 and $50,000. If you're trying to get new cabinets and countertops at the lower end of this amount, you're almost assuredly going to be disappointed.

You can find out what price range is realistic by getting several quotes from different contractors. If there's one particular contractor you like better than the others, you could always show them the competing quotes and see if they'll match the price. There are also some online tools, like remodel calculators, that can help give you an idea of what price may be reasonable.

Remember, though, there are regional variations and the cost of services will differ depending on the contractor's reputation and experience. You aren't going to get the premiere luxury home builder in a major metro area to give you rock-bottom prices.

2. Consider being flexible about time

Contractors typically have a slow season. For example, usually winter is a less busy time for projects. If you're willing to be flexible about when a contractor does your project, they may be willing to provide you a lower price.

We were able to take advantage of this when we needed some painting done. Our preferred painter was swamped at the time we originally contacted him but he told us if we waited a few months until he went into his slow time, he'd give us a 5% discount. We were really happy to be able to save the money and he was happy to be able to line up a job for a time of year when demand was lower.

3. Offer to buy materials yourself

Contractors typically mark up material costs, but you don't necessarily have to buy products directly from the contractor or their preferred suppliers. Depending on your arrangement with the company doing the work in your home, you may be able to buy things yourself more cheaply.

When we built our house, our builder allowed us to do this with chandeliers and certain other items. For example, I found a slightly different version of the bathtub I wanted through an online supplier rather than the company our builder had sent us to. I was able to save $1,200 on the tub by buying the less expensive version and having it delivered.

Just be aware, if the materials you buy are not delivered on time, you could end up slowing down your project -- and potentially incurring extra costs if you throw your contractor off schedule.

4. Ask your contractor what they can do for you

Finally, the last thing to consider is to just be honest and ask your contractor what options you have if you can't afford -- or don't want to pay -- the price being quoted. You aren't adversaries, you should be working together to find a deal that works for both of you. And your contractor may have some cost-saving ideas you hadn't thought of that can bring the price in line with your budget.

By following these four tips, you should be able to reduce the cost of your renovations. This will make upgrading your space more affordable in light of the size of your bank account and your broader financial goals.