Remodeling your home can be a great way to increase its value, but it can also set you back financially if you don’t take the time to budget house renovation costs beforehand. While it may seem overwhelming to come up with the right budget for your home remodel, it can also be easy if you know where to start and how to do it. The following will walk you through a few steps to get started.
1. Determine Which Rooms Need Work First
Sometimes you’ll be able to afford a whole home remodel, and other times you’ll have to take it room by room. Take a look at your list and decide which of those rooms takes priority.
For example, if you would like to remodel the bathroom and the kitchen, but the kitchen is only ten years old, and the bathroom is 60 years old, you may want to start with the bathroom. Your resale value will benefit more when you remodel something that is outdated rather than something relatively new.
2. Speak With a Home Remodeling Contractor
After you know which rooms to start with, you should speak with your home remodeling contractors to get an idea of how much renovations typically cost. Be sure to let the contractor know exactly what you plan to include in the remodel. For example, are you just redoing the surface stuff, such as new cabinetry and flooring, or will you need plumbing worked into that estimate?
3. Understand Percentages for Budgeting Room Remodels0
There are some generic percentages you need to understand to come up with a close-to-accurate budget amount. Investing more than the recommended percentage into a particular room will not bring you a return on your investment. Experts recommend the following.
- Kitchen Remodel – Spending 10%-15% of your home’s value. For example, a house worth $500,000 would benefit from a kitchen remodel that costs $50,000-$75,000.
- Master Bathroom Remodel – Spending 10% of your home’s value. For example, a $300,000 house could benefit from a $30,000 master bedroom remodel.
- Additional Bathroom Remodel – Spending 5% of your home’s value. For example, a house worth $500,000 may benefit from a basic bathroom remodel that costs $25,000.
- Attic or Basement Finishing – Spending 10%-15% of your home’s value. For example, a $750,000 might benefit from a $75,000-$112,500 attic or basement finishing project.
- Living Room or Family Room Remodel – Spending 1%-3% of your home’s value. For example, a house worth $300,000 could benefit from a living room or family room remodel that costs $3,000-$9,000.
4. Look Over Your Finances
You’ve decided which rooms to tackle first, you’ve gotten answers to “How much does it cost to remodel a house?” and you’ve learned what percentages are worth spending on particular remodels. Now it’s time to take a look at your finances.
How much can you afford to spend? Do you have financing options available? Does your contractor offer financing options? Maybe you have the cash saved up? Speak with a lender, speak with your contractor, and look at your savings account to determine how much you can afford to pay for the total remodel.
5. Put It All Together
Now that you’ve taken all the steps necessary to get an idea of how much to budget for your home remodel, you’ll need to put it all together. Once you’ve decided on an amount, you must stay within it. There’s always something bigger and there’s always something more beautiful than what you budget for, no matter how big your budget is. Regardless, it would be best if you stuck with what you’ve settled on so you can enjoy your new space without the stress of wondering how you’re going to pay for it all.
Now, Let’s Get Started!
If you’re wondering, “Are there remodelers near me who can tackle this project?” you’re in luck! Contact Houston Custom Carpets today at (281) 548-3600 to speak with a professional about all your home renovation needs and to get started with your project as soon as possible.