8 Things to Know Before Renovating a House (2026)

Updated October 2026. For owners planning a renovation, whether you’re staying for years or selling soon.

Before renovating a house, know eight things: your full budget and how you’ll pay, who you’ll hire, the timeline, permits, lead-paint rules for pre-1978 homes, materials, a backup plan and resale value. As of NAR’s 2025 Remodeling Impact Report, 18% of owners remodel to prepare for a sale within two years, so check which property extensions add value before you build. And 54% pay with home equity loans or lines of credit.

Jump to: 💲 Budget · 🤝 Contractors · 📍 Permits and lead rules · 🏠 Resale value · ❓ FAQ

A renovation is exciting, and it’s easy to start with the fun part: the design. The projects that go well usually start with the boring part instead. Here are the eight things to settle before the first wall comes down.

1. How much will it really cost, and how will you pay?

Build the budget from line items: materials, labor, permits, design, delivery, disposal, and anything you’ll replace along the way, like furniture or appliances. Then add a contingency cushion for surprises behind the walls. Old homes hide old wiring, rot and plumbing.

Decide how you’ll pay before you sign. In NAR’s 2025 Remodeling Impact Report, owners mostly used home equity loans or lines of credit (54%), savings (29%) and credit cards (10%). A home equity loan puts a lien on the house, so it shows up when you sell.

A detailed budget also tells you where to save and where to spend. Spend on what you touch every day, or what protects the house. Save on finishes you’d happily change later.

2. Who will you hire?

The wrong contractor costs more than any material choice. Check the license with your state board, ask for proof of insurance, and get at least three written bids for the same scope.

Look at recent work, not just reviews. Call two past clients and ask about the schedule, the cleanup and how changes were handled. The same goes for trades you hire directly. If you’re hiring painters, residential or commercial painters, look at finished jobs and read reviews before you hire. For tile work, our guide on hiring a tile contractor for bathroom renovations lists the questions to ask.

Get the contract in writing: scope, materials, price, payment schedule, start and finish dates, permits, cleanup and warranty. Never pay most of the price up front.

3. How long will it take?

Write the timeline before work starts, then add buffer. Break the job into phases with clear handoffs: demolition, rough-in, inspections, drywall, finishes. Each step depends on the one before. A realistic timeline lists every task, who owns it and how long it takes.

Plan around lead times. Custom cabinets, windows and some appliances can take weeks to arrive. Order them early, and don’t schedule the installer until they’re on site. If you’re selling after, work back from your target listing date and leave time for photos.

4. Do you need a permit?

Usually, for anything structural, electrical, plumbing, HVAC or roofing, and often for decks, fences and window changes. Rules come from your city or county building department, so call or check its website first. Cosmetic work like painting or new cabinets on the same footprint often doesn’t need one.

Permits protect you later. Unpermitted work can delay a sale. Buyers, appraisers and insurers may ask about it, and some lenders won’t finance it. Texas’s Seller’s Disclosure Notice, for example, asks about room additions, structural changes or repairs made without necessary permits.

5. Is your home older than 1978?

Then lead paint is a real issue. Per the EPA, about three-quarters of U.S. homes built before 1978 still contain some lead-based paint. Sanding, cutting or demolition can create dangerous dust.

EPA’s Renovation, Repair and Painting (RRP) rule requires that anyone paid to do work that disturbs painted surfaces in a pre-1978 home be certified and use lead-safe work practices. Ask your contractor for their certification. When you sell a pre-1978 home, federal law also requires a lead paint disclosure to the buyer.

6. Which materials will last?

Pick materials for how you live, not just how they look. Ask about durability, upkeep, warranty and energy use. A cheaper floor that scratches fast or a window that leaks heat costs more over time.

Energy matters to many owners: in NAR’s 2025 report, improving energy efficiency was a main reason for 19% of remodels. Our guide to 5 key renovations to protect your home covers roofs, windows and drainage first.

7. What’s your backup plan?

Something will slip. Decide in advance what you’ll do if materials are late, the budget runs short or a design choice doesn’t work. Pick the parts you’d cut first. Know where you’ll live or cook if the kitchen is out longer than planned.

Keep everyone in the loop. A weekly check-in with your contractor, written change orders and a shared photo log keep small problems from growing. Our home renovation checklist turns these steps into a printable list.

8. Will the renovation pay off when you sell?

Sometimes, but rarely dollar for dollar. Here’s what NAR’s 2025 report found:

The lesson: small, visible fixes tend to pay back at sale, while big projects mostly pay back in how you enjoy the home. Do the big ones if you’ll stay. Do the small ones if you’ll sell. Our list of renovations sellers should do before listing and our guide to renovations that increase property value go project by project. For more ideas on worthwhile changes, see our earlier list.

Does a renovation change your taxes when you sell?

It can lower them. IRS Publication 523 says improvements that add value, prolong the home’s life or adapt it to new uses are added to your basis. A higher basis means a smaller gain. Repairs on their own generally don’t count, unless they’re part of a larger improvement project.

Many owners won’t owe tax anyway: if you meet the ownership and use tests, you may exclude up to $250,000 of gain, or $500,000 for a married couple filing jointly. Keep contracts, invoices and permits in one folder either way.

Renovating to sell, or buying to renovate?

Selling after the work? When the home is ready, a Beycome flat fee MLS listing puts it on your local MLS for $99, with $0 at closing. Upload your permits and receipts to show buyers what was done.

Buying a fixer-upper? The Beycome buyer program has no upfront fee. We keep 1% of the price (minimum $1,499) and credit the rest of the buyer-agent commission at closing, with lender approval, money you could put toward the work. It’s open to every buyer on homes listed by other agents. The credit can’t apply where no buyer-agent commission is offered, like most FSBO homes, or on homes listed by Beycome sellers.

Frequently asked questions

Other renovation guides you may be interested in

• Having your bathroom renovated? Here are the details you should consider first.
• Do these 6 things before opening a construction site.
• Top 4 ways to increase the value of your property.