Home remodeling: A guide to creating a realistic budget

Adding on a new room addition or redoing the bathroom can be exciting. Once you’ve decided to embark on the project, the question of remodeling costs is sure to arise. Here are some major factors to consider when calculating project costs:

What’s a good remodeling budget? 

First, assess the value of the specific room or space you wish to upgrade. It’s best to keep renovation costs around or below 10 to 15 percent of your home’s overall value. 

Spending more than this amount is not necessarily going to increase property value. Knowing the value of the renovation space and your end goal helps in setting a good budget. 

Calculating remodeling costs

Many factors can sway renovation costs. One factor greatly influencing remodeling costs is room size. The larger the room, the more materials needed to complete the project. You also have to calculate labor costs, unique costs of the project and more. 

Home renovation calculators can be found online to assist with these calculations. They’ll ask for the type of space you’ll be completing your renovation project in. They’ll also ask for square footage of the space, estimated material quality and other factors. 

If you prefer a more personal approach, hiring a local contractor may be for you. They can assess the project and provide a detailed and precise estimated cost of your renovation project.

Most expensive project when renovating a house

Full kitchen remodels are often regarded to be one of the most expensive projects. Kitchens are expensive to remodel because in addition to upgrade materials, electrical and plumbing factors are at play. 

What is the cost of completely renovating a home? 

Completely renovating a home can be more expensive than a simple room upgrade. On average, a complete home renovation falls between $20 thousand to $75 thousand dollars. In some cases, the cost is much higher. 

Factoring ROI into budget-building

Return on investment (ROI) should be considered before starting home renovations. Think about the value the home improvement project could possibly bring. 

If the project is to enhance the space for your personal enjoyment, it may be best to stick to a tighter budget to save money. However, if you wish to sell your home, spending a bit extra on remodeling can be to your benefit. 

The more prepared you are for your home renovation project, the smoother the experience will be. Understand the needs of the space you wish to repair, know what you wish to renovate and the quality of the materials you’ll be using. This will allow for you to come up with a great renovation budget.