Guide to Your First Renovation

Renovating your home for the first time can feel overwhelming. You’ve probably heard horror stories—delays, budget overruns, unexpected complications, and the stress of managing it all. While home renovations are a major investment, the good news is that you don’t have to navigate the process blindly. By learning from homeowners who have gone through it before, you can avoid common pitfalls and ensure your project stays on track.

This guide will take you step by step through the renovation process, helping you plan, budget, and manage every aspect of your project with confidence. Whether you’re remodeling an entire home or tackling a significant project that spans several weeks, these insights will set you up for success

At Remodelum, we’ve helped thousands of homeowners successfully plan, track and execute their renovations. This guide is a synthesis of what we’ve learned from those projects

Step 1: Define Your Renovation Goals

Before making any major decisions, take the time to define exactly what you want to achieve. Start by creating a detailed wish list that outlines all the changes you’re considering, from major structural overhauls to smaller upgrades. Your list might include broad goals like a full home renovation or a kitchen expansion, or it could be more specific, such as replacing your shower with a freestanding tub or repainting your living room walls.

Gather inspiration from online sources, home improvement magazines, and even your neighbors’ projects to refine your vision. Prioritizing your goals is also key—you may need to make trade-offs along the way, and knowing which aspects of the project matter most to you will make those decisions easier.

Be sure to take photographs of your home’s current state to document what you’re starting with. This will come in handy later when discussing plans with professionals and tracking progress.

Step 2: Create a Scope of Work and an Initial Cost Estimate

Once you have a clear idea of what you want, the next step is to translate that vision into a structured Scope of Work (SOW). This document serves as the foundation for discussions with contractors, helping them provide accurate estimates and ensuring that everyone involved understands the project’s requirements. A well-prepared Scope of Work minimizes misunderstandings, prevents scope creep, and helps you get accurate bids.

A strong Scope of Work should follow the SMART principles:

  • Specific – Clearly define each task (e.g., "Apply two coats of paint to all interior walls").

  • Measurable – Quantify work where possible (e.g., "Upgrade all existing copper wiring").

  • Achievable – Ensure your plan is realistic, considering structural limitations and permit requirements.

  • Relevant – Tie each item back to a functional or aesthetic goal.

  • Time-bound – Set realistic deadlines to keep the project on track.

Since renovations often evolve as you receive input from professionals, remain open to refining your scope based on expert advice. There are several ways you can draft an initial cost for your renovation to help you figure out the budget. You have a detailed article on how to build an initial cost estimate for your renovation here

There are several techniques you can use to create an initial version of your Scope of Work so you can iterate and refine it over time. Some homeowners start by reviewing scopes from friends or family who have undergone similar renovations. Others use online templates to structure their project details. However, we recommend using Remodelum's renovation cost estimator, which allows you to build a detailed Scope of Work tailored to your project type. This tool also provides an estimated cost breakdown based on factors such as the quality of finishes and your location, giving you a solid starting point before engaging with contractors.

By taking the time to develop a clear and well-structured Scope of Work, you’ll set yourself up for a smoother renovation process, more accurate pricing, and better project execution.

Step 3: Determine If You Need an Architect or Designer

Depending on the complexity of your project, you may need to bring in an architect or designer.

  • An architect is necessary if your renovation involves major structural changes, permits, or zoning regulations.

  • A designer can help with layout optimization, material selection, and ensuring your space is both beautiful and functional.

If you’re still unsure, meeting with a few contractors can help gauge whether you need additional expertise. Many contractors will let you know early on if an architect is required. If you find yourself struggling with design decisions, working with a designer can provide much-needed clarity.

Step 4: Get Multiple Contractor Bids

Once your scope is finalized, the next step is to collect bids from multiple contractors. Even if you already have a preferred contractor in mind, gathering at least three estimates is essential.

This process helps you:

  • Identify gaps in your scope – Different contractors will spot different challenges and ask key questions.

  • Compare costs – Pricing varies significantly, and multiple bids help ensure fair pricing.

  • Encourage competitive pricing – Contractors are more likely to offer reasonable rates when they know they’re being compared.

When comparing bids, don’t just choose the lowest price. Consider each contractor’s experience, reviews, and communication style to make an informed decision.

Step 5: Finalize Your Budget, Timeline, and Payment Terms

Once you’ve selected your contractor, it’s time to lock in the details: the final scope of work, budget, and timeline. To avoid surprises, establish clear payment terms upfront. Most home renovation contracts follow a structured payment schedule, typically consisting of:

  1. Deposit (30-40%) – Paid upfront to start the project.

  2. Midway Payment (30-40%) – Issued once major structural work is completed (e.g., plumbing, electrical).

  3. Final Payment (20-40%) – Released only after a punch list walkthrough confirms that all work has been completed to satisfaction.

A punch list walkthrough allows you to inspect the work and ensure everything meets your expectations before making the final payment.

Step 6: Track Costs and Manage Change Orders

Even with a well-planned budget, unexpected expenses can arise. Renovation costs often increase due to change orders, which are modifications to the original scope that come up during the project. These changes can happen due to:

  • Unforeseen issues – Hidden problems, such as outdated wiring or plumbing, that require immediate attention.

  • Design changes – Homeowners deciding to upgrade materials or expand the scope after seeing progress.

To stay on top of spending, it’s crucial to document every payment, invoice, and expense. This helps with:

  • Budget control – Ensuring you don’t overspend.

  • Tax benefits – Some home improvements may be tax-deductible when you sell your home.

  • Future resale value – Keeping records of renovations can justify a higher selling price.

Additionally, maintain a digital record of warranties, permits, and design plans. These documents can be invaluable for future repairs or renovations.

Finally, it is important to mention that great contractors are not necessarily great book keepers or cost managers. More often than not, you will feel in the dark when it comes to total cost of the project. Change orders will very quickly add up and heavily change the original scope of work - And, when a homeowner and contractor lose track of the total cost of the renovation, there is a much higher risk of overspending. For that reason, we recommend homeowners to take an active role in managing the economics of their project. Keep track of all the costs and payments - Continuously update contractors in the status of their finances (e.g., Total Scope of the project, payments made so far and expected future payments). By doing so, you will avoid unnecessary conflicts with your contractor and unpleasant financial surprises.

At Remodelum, we offer a All-In-One Home Renovation Tracking module to easily track and record the main events of your renovation. You do not need to re-invent the wheel when it comes to Home Renovation Finances.

Step 7: Final Walkthrough and Contractor Relationship

As your renovation nears completion, take the time to carefully inspect the work with your contractor. Walk through your home with your original scope in hand and verify that every task has been completed as expected. If permits and inspections were required, confirm that they have been approved.

Holding back the final payment until everything is finished gives you leverage in case last-minute adjustments are needed.

It’s also important to consider your relationship with your contractor. Many contractors rely heavily on referrals and word-of-mouth recommendations. A good contractor will go the extra mile for clients they believe will recommend their services. If you’re satisfied with the work, leaving a positive review or referring them to friends can help foster a strong, ongoing relationship.

Step 8: Organize Your Renovation Records

Your home will require multiple improvements over the years, and keeping track of past renovations can be incredibly valuable. We recommend organizing:

  • Scope of work documents – Original plans and any change orders.

  • Invoices and payment records – Useful for budgeting and tax implications.

  • Receipts for materials and appliances – Helps when selling your home.

  • Before-and-after photos – Serves as proof of completed work in case of disputes.

By maintaining a digital record of your home improvements, you’ll save time and avoid headaches in the future. Remodelum is positioned to become your digital repository of the documentation for all your home improvements.

Final Remarks

Managing a renovation doesn’t have to be overwhelming. Remodelum is designed to help homeowners stay organized throughout the entire process. With features that assist in planning, budgeting, contractor communication, and document storage, Remodelum makes it easy to track every aspect of your project in one place.

Whether you’re preparing for your first renovation or managing multiple home improvement projects, Remodelum gives you the tools to stay on budget, avoid costly mistakes, and confidently bring your vision to life.

Start your renovation journey today with Remodelum!