A2Z Blog

Where to Start When Remodeling Your Home: The Essential Steps

Written by David Haziza | Feb 9, 2026 3:25:16 AM

The best strategy for determining where to start when remodeling your home is to begin with a strict budget and a prioritized list. Before contacting any professionals, you should check your current space. This will help you see if you need structural repairs or cosmetic updates.

This early assessment serves as the blueprint for the entire home remodeling process, preventing costly changes once construction begins. Industry experts like A2Z Construction Management note that detailed planning is the single most important factor in a successful renovation, ensuring a smooth path from concept to completion.

Key Takeaways

  • Establish a realistic budget with a safety net. Prioritize essential structural repairs over cosmetic upgrades and set aside a 20% contingency fund to cover unexpected costs like water damage or outdated wiring.
  • Follow the correct renovation sequence. Avoid costly rework by securing professional designs and building permits before beginning any demolition, structural framing, or mechanical work.
  • Hire licensed professionals to protect your investment. Vet general contractors for proper insurance and licensure, and insist on a detailed contract that outlines the scope, payment schedule, and change order process.
  • Adhere to the 30% rule for financial safety. To prevent over-capitalizing, keep your total renovation budget below 30% of your home’s current value to ensure the project yields a positive return on investment.

The Planning Phase: Defining Your Vision and Budget

Good planning prevents expensive mistakes. Before you start, you must develop a clear home remodel plan that covers both your needs and your wants. This stage requires honest talk about how your current home fails to meet your daily needs.

Setting Priorities: The First Thing to Do When Remodeling

The first step is to distinguish between what you need and what you want. A "need" might be to fix a leaking roof or update old systems. A "want" could be high-end finishes for your dream home.

Focusing on structural health first ensures your house renovation stays safe and valuable for years. Once you list essential repairs, you can look at design elements. A clear priority list helps your team know where to put resources in your renovation plan.

Creating a Realistic Budget and the 20% Contingency Rule

Building a complete renovation budget is critical. Research local labor rates and material costs to see what is possible. You must count every expense to get a true picture of total home renovation costs. Being open about your financial limit helps professionals guide you toward real solutions.

Experts advise setting aside a contingency fund of at least 20% of the total remodeling project cost. Renovations often reveal hidden issues like water damage once walls are opened. This buffer ensures unexpected bills can be paid right away. Without this safety net, a single surprise could stop your home renovation projects.

Determining Your ROI: Is the Remodel Worth It?

Homeowners should look for the best return on investment in home improvements to maximize value. Updates to kitchen and bathroom areas usually offer the best return. Adding usable living space or increasing the square foot count also boosts value.

However, you must align your investment with local market values to assess the projectis financial soundness. Ultimately, the value of a renovation project is measured by both profit and improved quality of life.

The Sequence: In What Order Should I Renovate My House?

Knowing the right order of home renovation saves time and money. Following a set sequence prevents damage to finished work and ensures systems are installed well.

Phase 1: Planning, Design, and Engineering Permits

The remodeling process begins with the creation of detailed architectural drawings and a precise floor plan. If the project involves moving walls or modifying the structure, a structural engineer must verify the safety of the changes. These documents serve as the master instructions for all contractors and subcontractors involved in the build.

Once the design team finalizes the design, the next step is to secure the necessary building permits from local authorities. This legal step is non-negotiable and ensures that all work complies with zoning laws and safety codes. Skipping this step can lead to significant fines, delays in work, or issues when selling the home later. The permitting process can take time, so you should factor it into the overall project timeline.

Phase 2: Demolition, Structural Work, and Systems to Code

This phase represents the most intensive part of the steps to renovate a house, often referred to as the "rough-in" stage. Demolition crews remove old materials, stripping the space down to its framing to prepare for new construction. This is often when the most significant dust and debris are generated, requiring careful containment strategies.

Following demolition, framing carpenters execute the new layout by building walls and installing structural beams. Once the room's skeleton is in place, specialized trades install mechanical systems. This includes installing new plumbing lines, HVAC ductwork, and extensive electrical work to meet modern load requirements. Local inspectors must review and approve these systems before any walls are closed up.

Phase 3: Surfaces, Finishes, and the Final Walkthrough

After the mechanical inspections pass, insulation is installed, and drywall is hung to define the rooms. This transition marks the beginning of the visual transformation, where the space starts to resemble a finished home. Skilled tradespeople then install flooring, tile, and cabinetry, handling these expensive materials with care.

The final touches include painting, installing light fixtures, and installing plumbing hardware such as faucets and showerheads. The project concludes with a comprehensive walkthrough where the homeowner and contractor review the work together. This is the time to identify any minor defects or "punch list" items that need correction before the final payment is released.


The Professionals: Hiring and Legal Protection

Picking the right team is the most important decision in any home improvement project. A good team ensures the vision is built correctly and the homeowner is protected.

Vetting Licensed General Contractors and Architects

A licensed general contractor acts as the project manager. They coordinate subcontractors and ensure materials arrive on time. Verify that any professional you hire has the right licenses and insurance.

Reviewing portfolios helps confirm that their experience aligns with your project's needs, while reading online reviews provides crucial insight into their reputation and work ethic. Using a remodeling checklist for contractors during interviews helps you judge their reliability and style.

Understanding Contracts, Insurance, and Change Orders

A clear contract is your best defense against problems. This document should detail the scope of work and payment schedules. The team must handle changes to the original plan through formal change orders. This discipline prevents scope creep and keeps the budget clear.

The 30% Rule: Planning Your Investment

The "30% Rule" acts as a financial guardrail. It suggests that home improvement spending should not exceed 30% of your home’s value. For example, for a $500,000 property, this guide sets a renovation budget cap of roughly $150,000.

Sticking to this ratio ensures you can successfully budget for desired features like open kitchen designs during your kitchen remodeling. It ensures the investment stays profitable relative to the neighborhood's market value.

The Logistics: Preparing for Construction Reality

A major renovation disrupts daily routines. Preparing for the impact of construction on your life is vital for reducing stress.

Living In vs. Moving Out: Managing Daily Disruption

Homeowners must decide whether to stay in the home or move out. For large home renovation projects, moving out is often practical. It avoids the daily noise, dust, and loss of privacy.

If you choose to stay, you must prepare your living space carefully. Create a "clean zone" behind plastic barriers where the family can retreat from the dust. If your kitchen is under construction, set up a temporary station in another room with a microwave, fridge, and disposable plates.

You must also protect pets and children by keeping them far from the work zone. Clear communication with your general contractor about daily start and end times helps maintain your schedule during the build.

Expecting the Unexpected: Managing Hidden Site Conditions

Renovations almost always involve finding unforeseen conditions. Older homes may hide issues that need immediate attention, such as wood rot, mold, or outdated wiring behind drywall.

David Haziza, the owner of A2Z, a General Contractor In Bergen County, NJ, advises clients that a flexible mindset is a homeowner’s best asset during these moments. When a problem is found, do not panic. Instead, rely on your contingency fund to cover the repair. Addressing these issues promptly prevents delays, keeping the project on track toward completion.