Home Remodeling: How to Do More With Less

By RACHEL LOUISE ENSIGN

Unable to sell their homes in this stagnant real-estate market, more homeowners are settling in for the long haul and renovating.
But at a time when there's less home equity to tap into and lending standards are still tight, people will likely be able to spend less on renovations than before the housing crisis. If you're looking to make updates on a budget, figure out which projects are going to make a big difference—for your comfort now and resale later—for relatively little money.
"Before, everyone had built so much equity in their home, people were going so over and above in home-improvement projects," says Jon Wittmaack, a Ridgewood, N.J.-based licensed contractor and co-host of home-improvement show "Brothers on Call" on the DIY Network. Now, customers "are more cost-conscious."
Labor often is the heftiest cost of a renovation. So first determine which projects you can realistically do on your own and which are best handled by a pro. If you get in over your head, it can end up costing you more in the end. You'll likely pay to fix your mistakes—including not getting the proper permits and inspections—and then to get it done right.
Certain projects, like painting and installing insulation, can be DIY with a bit of guidance from home-improvement websites and books. Replacing sinks and faucets also is fairly simple, says Michael Litchfield, author of the book "Renovation."
Updating the bathroom? Instead of spending thousands to gut the room and replace all fixtures and tile work, consider hiring a glazing company to refinish the tub and change the color of the tiles, says Mr. Wittmaack. You can replace a basic vanity (some under $200), sink (under $70), faucet (under $25) or toilet (under $40) on your own.
In the kitchen, replacing cabinet doors and drawer fronts is typically around 75% cheaper than replacing the whole cabinet and drawer units. In the living room, replace carpeting. You can expect to find remnants for $2 a yard less than retail carpets, says Brent Coffelt at Remnant Carpet Co. in Oklahoma City.
If you live in a warm climate and are looking for more space, consider building an outdoor living space you can use year-round. A simple deck will run you around $1,000, thousands less than the cost of a room addition.
If you opt for a professional to do the work, there are ways to keep costs down. One way is to cut out the middle man -- the general contractor -- and hire subcontractors on your own. You'll want to consult reference books, renovation websites, and friends and family who have done renovations to get a handle on what subcontractors you're going to need and when you'll need them in the process. Ask people for references or look on websites like AngiesList.com, which have reviews of local service providers.
In some locations, you may be able to get a lower rate during the winter since that's typically contractors' slowest time, says Mr. Wittmaack. And you can keep labor costs down by doing some of the grunt work yourself, such as picking up materials at stores and throwing out debris.
When it comes to materials, some contractors get a discount that they'll pass on to customers while others will charge you a mark-up. So it's important to find out the retail price of the things you'll need. If you find a lower price on your own, tell the contractor you'll buy the materials and ask for a quote for either the cost of labor or the cost of labor plus building materials like screws and glue, says Mr. Wittmaack.