How Much Should You Spend on Home Renovations?
Thinking about remodeling a part of your house? Those who have renovated will be the first to tell you how difficult it is to stay within a budget. That said, home renovation restrictions are a necessary evil. Otherwise, it’s easy to let things slide here and there — only to look up and realize you’ve blown past your budget by thousands of dollars.
Before you lift a hammer, sit down with a pen and paper and think through some tough questions. Ahead, we’re covering how to best approach your home renovation budget.
How much does an average renovation cost?
Of course, costs can vary widely depending on your geographic location, room size, materials, and timeline. Unfortunately, some cities simply cost more money for labor. On average, though, here’s what people spend on common renovations:
Kitchen $12,000 – $33,000
Bathroom $6,000 – $14,000
Basement $10,000 – $27,000
How much to budget for each room:
The general renovation rule of thumb is to spend no more than 10 to 15 percent of your home’s total value on a single room. If you go beyond those parameters, the value of the renovation will not proportionally add to the value of your home.
Here’s a quick example: If you own a home worth $100,000, the maximum you should spend on a kitchen or bathroom renovation is $15,000.
Realistically, you’d want to spend much less than 15 percent of your home’s value on your powder room; comparatively, a bigger project like a kitchen may need all 15 percent.
This becomes important if you ever want to resell your home. If you think you will move within the next 10 years, you should definitely pay attention to this metric and limit your spending to what you might reasonably hope to get back.
Keep this in mind: Upgrading your home doesn’t have to mean a major renovation. Focusing on a few high-quality, impactful improvements can take your home to a new level without needing a demo day.
These upgrades could be as simple as adding a fresh coat of paint to every room, updating your kitchen hardware to look more modern, adding a bit of thoughtful landscaping, or getting all-new shutters installed.
Looking for inspiration on that last one? We can help!
- Flugel Consulting, LLC