Budget for your home improvement project first. The Homeowner Project Preferences: 2020 Modernize survey found that 79% of homeowners don’t make a budget, even though it’s important.
Budgeting can be hard, but there are many tips and tools that can help you figure out how much your home improvement project will cost.
Use the 5–15% guideline.
Building and remodeling industries follow the 5–15 percent rule. It states that a house renovation should cost between 5% and 15% of its present value. Nationally, 8%.
To start any house remodeling project, you must know its scope. Depending on the home’s valuation, a kitchen remodel can cost anywhere from $28,000 to $80,000, according to Remodeling Magazine’s 2022 study.
According to House Logic, significant renovations like living room additions and bathroom remodels cost $100 to $200 per square foot.
The extent of the redesign determines how much of the budget goes to each adjustment. The National Kitchen and Bath Association broke down the costs of remodeling a kitchen by how much of the budget they took up.
- Hardware: 2%
- 17% installation
- 14% appliances and ventilation
- Countertops 10%
- Floors: 7%
- Light 5%
- Walls/ceilings: 5%
- Design: 4%
- Doors/windows: 4%
- Faucets/plumbing: 4%
Bathroom remodeling is another common job that depends on several aspects. Room size matters most. Material cost breakdown:
Shower: $225-$1,240 Tub: $475-$870 Toilet: $360-$720 Sinks: $190-$1,130 Vanities and cabinets: $380-$700
Lighting: $35-$130 Mirrors: $70-$130 Paint: $30-$55
Home remodeling commonly overlooks daily costs, leading to budget overruns. If you’re remodeling the kitchen, you may need a temporary kitchen to store and cook nonperishable goods. You may also order takeout or eat out more often. You may need to move if the remodel is large. The makeover budget must include these charges.
Remodeling budgets depend on several factors. Start with Remodeling Magazine’s regional and major city Cost vs. Value Reports. It lists 36 frequent renovation project averages nationwide.
Here are some budget-affecting variables:
- Home Value: Consider the value of your home and other updated properties in your neighborhood. Entering your address online yields an interactive map with home values and other information. It’s important to look at the prices of recently sold homes in your area that are the same size but sold for more. If images are given, compare amenities, additions, and remodels.
- Motivation: Write out what’s driving you to rebuild. By writing down these things, you’ll understand your project goals better and be able to change them.
- Needs vs. wants: Once your vision of the renovation has been more clearly defined with budget limits imposed, you may better grasp which components of the design are based on necessities and which on preferences.
- Future: Knowing your remodel schedule helps you decide how long you can handle the project’s difficulties.
Size: The remodel’s variables depend on the space’s size. Your budget may need to be adjusted if your kitchen is more or less than the national average of 7% of a home’s total square footage.
- Layout: If you want to move a room feature, a facelift may not be enough. If you want to move the kitchen island, you may need to hire an electrician and/or plumber and buy new fixtures to match.
Ask your trade professional. Before committing to them, you should consult with a trade professional in the space being modified so they can assess the project’s feasibility and strategy.
Getting their perspective does not negate your own, but remodeling may not be your strength, so you should gather more information to ensure that your renovation objectives are met.
Renovate within your budget. A home improvement budget should not be exceeded. Your trade professional and you must work together to respect those boundaries.
To stay within budget, construct a spreadsheet of predicted costs.