How to Plan a Home Renovation: A Step-by-Step Guide (2026)
Planning a home renovation? Follow our step-by-step guide to set the right budget, find the right builder, manage approvals, and get the result you want.
How to Plan a Home Renovation: A Step-by-Step Guide
A successful home renovation doesn’t start with a builder — it starts with a plan. The homeowners who end up with the best results are the ones who invest time upfront getting clear on what they want, what it will cost, and who is best placed to deliver it.
This step-by-step guide walks you through everything you need to do before a single wall comes down.


Step 1 — Define Your Goals
Start by getting specific about what you want to achieve. Are you renovating to improve liveability for your family? To increase resale value? To modernise an outdated layout? Your goals will shape every decision that follows — from which rooms to prioritise to what budget makes sense.
Write a brief that describes the problem you’re trying to solve, not just the solution you think you want. A good builder or architect will help you challenge your assumptions.


Step 2 — Set a Realistic Budget
One of the most common renovation mistakes is setting a budget based on what you’d like to spend rather than what the work actually costs. Research realistic cost ranges for your renovation type before you start talking to builders.
As a rough guide:
- Bathroom renovation: $15,000 – $40,000+
- Kitchen renovation: $20,000 – $60,000+
- Single storey addition/extension: $150,000 – $400,000+
- Full home renovation: $200,000 – $600,000+
Add a contingency of at least 10–15% for unexpected costs.
Step 4 — Engage the Right Design Professional
For anything beyond cosmetic upgrades, engaging an architect or building designer before approaching builders is money well spent. Good design documentation leads to more accurate quotes, fewer variations during the build, and a better end result.
Step 5 — Get Multiple Quotes
Once you have a design and scope of works, approach at least three licensed builders for quotes. Ensure each quote is based on exactly the same documentation so you’re comparing apples with apples. The cheapest quote is not always the best — look at what’s included, the builder’s track record, and how responsive they are during the quoting process.


Step 6 — Review Your Contract Carefully
Before signing anything, make sure you understand the payment schedule, variation process, defects liability period, and what happens if the project runs over time or budget. If in doubt, have a solicitor review the contract.
Step 7 — Prepare for the Build
Once you’ve appointed your builder, communicate clearly about your expectations from day one. Agree on how updates will be provided, how decisions will be made, and what the process is if something doesn’t meet your standards. A well-managed renovation relationship leads to better outcomes for everyone.
Frequently Asked Questions
How far in advance should I start planning a renovation?
For major renovations or extensions, start planning 6–12 months before you want work to begin. The design, approval, and tendering process alone takes time.
Should I move out during a renovation?
It depends on the scale of work. For whole-home or structural renovations, moving out is usually necessary. For smaller-scale work, it may be possible to stay — discuss this with your builder upfront.
How do I avoid budget blowouts?
Lock in your scope before construction starts, include a contingency, limit changes once the build is underway, and ensure your contract clearly defines what’s included in the price.