NEW YORK (CNN/Money) - Don't bust your budget on home renovations.

Ninety percent of home renovation projects go over budget, according to industry sources. But these five tips will help you avoid the money pit while maintaining the value of your home.

Research the costs before you start. Check Remodeling Magazine's Web site, www.remodelingmagazine.com, to get a sense of renovation costs by project for your region.

However, even in the same region, similar projects can vary in price. Those differences are affected by the initial cost of the house, the rate of which housing prices in the neighborhood are rising, and if there is a shortage of contractors in the area.

CNNfn's Gerri Willis shares five tips on how to control the costs and avoid the money pit. Play video (Real or Windows Media)

Those contractors will tend to charge more and can be a bit pickier about the projects they choose to do. Sal Alfano, editor of Remodeling Magazine, also points out that when housing sales are strong, resale value plays less of a role in homeowners' remodeling decisions, because they are more confident of recovering their money.

Make sure your remodeling plans don't price your home out of your neighborhood. For example, if you build an expensive pool and deck in a marginal neighborhood, the purchasing power of people moving into that community makes it unlikely that you'll recover your investment.

Making your product selections early helps reduce costs and time. Educate yourself about fixtures and appliances, as well as the look you are going for, so that you can by them yourself. This way you can have it delivered and waiting for your contractor to install.

Home improvement expert Lynda Lyday says people often start renovation projects before they know what they really want. Then once the hammer hits the nail they will decide on this fixture or this look and will soon find that work changes become very, very pricey.

Alfano says make sure not to fall into the "while you are here" syndrome. In other words, once homeowners get the contractor in the house they tend to say "while you are here" lets add these cabinets or let's fix that paint job. Well, that one fix or addition can add dollars to the bill by extending the contractor's work time.

While the idea of renovating your home can be exciting, try to hold down the costs by not springing for everything. Ask friends and neighbors who've renovated their homes what they would have done differently. What did they absolutely love about their renovations? Figure out what you could be in love with, or regret, before the project gets started.

Be the squeaky wheel with your contractor. From the beginning set the tone and make sure the contractor communicates well. Ask them questions: So, how often are you on the job? Where do you live? Are you in close proximity of the job? How many jobs are you currently on? If there is a problem, how do you handle it?

Set up formalized meetings and assign one family decision maker to talk to the contractor, not a site supervisor. Ask for work schedules so that you can determine whether the contractor is meeting his or her own deadlines.

Construction work is seasonal and most contractors begin to get calls from homeowners for projects in the early spring. This could have big implications for you if you are planning on doing a renovation because your project may be one of many on the contractor's plate.

And, with the contractor's attention divided, it may be harder for you to keep your project at the top of the list, so consider contacting the contractor in the fall or winter.  

Gerri Willis is the personal finance editor for CNN Business News. Willis also is co-host of CNNfn's The FlipSide, weekdays from 11 a.m. to 12:30 p.m. (ET). E-mail comments to 5tips@cnnfn.com.