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.
About the Author
Kyung Kim
Hi, I'm Kyung Kim. I immigrated from South Korea to the United States in 1968 when I was 7 years old. I have seen my mom struggle with the English language and work hard to raise her four kids by herself. Still to this day, I don't know how she pulled it off, but she bought her first home in 1979 for $70,000 and because of that decision, she was able to live without worrying about her financial future. I want that for everyone, to feel the pride of home ownership and to build their financial wealth using real estate as part of their financial portfolio. I feel so blessed to play a small role in helping others reach this goal.
I live in Beaverton with my husband, Richard. My mom, who lived with us for several years, passed away in our home in February 2022. Her first home purchase in 1979 made it possible for her to live to the very end, without worrying about her finances. As of August 2022 with a little downpayment assistance, our four children own their own homes. Being in real estate, I quickly realized that if they didn't buy now, they may be priced out of the market in the future. Whether that would have been the case, we will never know, but what we do know is that they are all realizing some good, healthy appreciation in their home values.
As passionate as I am about people owning their homes, I'm also passionate about giving back to our community. I support Compassion First, a non-profit organization that provides aftercare for sex trafficked girls in Indonesia. My husband and I also feel called to financially support social injustice organizations.
I'd love to assist you. Whether you're in the research phase at the beginning of your real estate search or you know exactly what you're looking for, you'll benefit from having a real estate professional by your side. I'd be honored to put my real estate experience to work for you.
