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Budgeting for Your Home Renovation

Project Planning
November 01, 2017

Developing a budget is an important first step for any home renovation project. While remodeling costs can vary based on the type of renovation and the vision you have in mind, it’s a good idea to start with an estimate of total costs before hiring a contractor.

  1. Get ballpark estimates for your desired project

    Assess your financing options

    Start by considering the national average for remodeling costs* for some of the most popular home improvement projects:

    • Bathroom renovation: $9,374
    • Kitchen renovation: $21,674
    • Basement renovation: $18,855
    • New room additions: $41,615
    • Demo costs:  $3,023
    • General home renovations and repairs: $10,035
    • Roofing upgrade: $7,063
    • HVAC upgrade: $5,256

    *These house remodeling costs are based on national averages and don’t account for all factors required for an accurate estimate, such as spacing concerns, current market conditions, financing and installation costs, among others. For an actual estimate for any of these renovation projects, consult with local professionals.

     

  2. Assess your financing options

    Allow for a little wiggle room

    Once you’ve got a ballpark range for your home improvement project, consider how you’ll pay for your remodel. You likely have more options than you think, including the following:

    • Cash
    • Credit cards
    • Home equity loans
    • Construction loans
    • PACE financing

    Pick the payment option that’s right for you and invest in your family’s comfort and happiness.

     

  3. Allow for a little wiggle room

  4. Get ballpark estimates for your desired project

    When your contractor starts working, they may run into some unexpected issues that could result in what is called a change order. This is an alteration to project plans, and generally these changes will raise your home remodeling costs.

    Roof replacement is a good example. If your contractor starts pulling off the old roof and finds severe damage underneath, you’ll likely need to spend a little bit more repairing the damaged portions.

    You can minimize any potential for stress by giving your budget a bit of wiggle room to cover an unexpected discovery. If you don’t have to use it—even better. You just saved yourself some extra funds!

    Renovating your home can be a big investment, but the right upgrades can add value to your home as well as comfort and enjoyment to your life. Keep these tips in mind as you create your renovation budget.