Preparing for a Home Remodel Starts with Budgeting

If you’re planning a home remodel, one of your biggest concerns is going to be your budget. You want to make certain that you can afford to do the remodel you want. If you can’t, you will have to decide if you can be happy with what fits your budget or if you want to wait until you have more resources available.

Home remodeling isn’t necessarily cheap, but it doesn’t have to break the bank, either. Here are some tips that will help you estimate your remodel cost so you can get an idea of what your budget will need to be.

How Large Is Your Project?

The first step of estimating a home renovation is to decide on the scope of your project. If you simply want to remodel your bathroom, the costs will be much lower than if you decide to remodel your kitchen, two bathrooms, and your outside deck.

The more you plan on doing, the larger the cost. Larger rooms are also typically more costly to redo because you need more flooring and more paint for the walls.

If you’re doing a full home remodel, do be aware that the costs greatly increase as the size of the home increases. For example, the cost of renovating a 2,000 square foot home is not going to be double the cost of a 1,000 square foot home—in most cases, it’s more.

This does depend on the number of rooms and the layout of the home, of course. Do keep in mind, however, that the larger the home, the more things may need to be changed.

Which Rooms Are You Renovating?

Another major factor that will determine your budget is the room or rooms you’re planning on updating. Kitchens are typically the most expensive rooms to renovate. Much of this has to do with the fact that kitchens have pipes and other utility lines that may need to be moved, plus there’s the cost of counters and cabinets.

Bathrooms are the second-most expensive room to remodel. The master bath typically costs more to update because they are usually larger than guest baths. Homeowners also tend to spend more money on their own bathroom than on a guest bath or a bathroom attached to another bedroom because they know they will use it more than the other bathrooms in the house. Because of this, it’s possible to spend twice the amount on a master bath.

Living rooms, dining rooms, and bedrooms may all cost about the same to remodel, depending on what you want to change and on the choices you make. Typically, all that you are changing in these rooms are the flooring, the walls, and the décor. However, if you plan on more extensive renovations, the costs can quickly increase.

Closets can also be costly to remodel if they are large walk-in closets. Purchasing entire closet sets that include shelving, hanging bars, drawers, and more can add up. It’s possible to spend as much on these closet systems as it is to remodel a bedroom or living space.

Room Facelift vs Major Remodel

If you’re simply giving your rooms a facelift or update, you won’t need to spend as much as you would if you were doing a major remodel. Typically, an update or facelift includes putting in new flooring, painting the walls, changing up window coverings, and making a few other small changes.

In the kitchen or bathroom, it may include changing the counters, painting the cabinets, or putting in a new sink, toilet, or shower. The room’s layout and footprint remain the same.

Major remodels, on the other hand, involve moving walls, plumbing, gas lines, and other large changes that do affect the size and layout of the room. You may need to add in a header support beam if you remove a wall, run new wiring, and put in additional support under the house.

These are major transformations that will cost more because you’re making structural changes to the property. However, if you want to transform a closed-off floorplan to more of an open concept, these changes may be necessary.

Where Do You Live?

Like most industries, the construction and renovation industry is affected by the overall cost of living in your city and state. Remodeling a home in Los Angeles is going to be more expensive than doing a renovation in Northern Colorado. You will want to reach out to a local contractor to learn more about the cost of doing a remodel in your area so you at least have an idea of what the average expenses are.

Are You Adding Square Footage?

Another major factor that will affect the cost of remodeling a home is whether or not you’re creating additional living space. If you are converting a basement or attic, you will have to account for the additional costs for things such as insulation, HVAC ducts, and other expenses. If you are adding on to the home, the costs will increase even more.

Even if you are simply enclosing a patio, you will still need to factor in the costs of building exterior walls, extending the roof, adding electrical wiring, and more. If you are planning on selling your home, however, this is one of the ways of increasing your listing price. More usable square footage does typically equate to more money, especially if you add a bedroom or bathroom.

What Finishes Are You Adding?

Another factor to take into account when doing a renovation cost breakdown is the level of quality in your finishes. If you’re remodeling a kitchen and using what is considered builder-grade cabinets, you will be able to save a good amount of money. However, these cabinets also clearly reflect their cost—they are not luxurious in any way, nor do they really stand out.

If you are planning on using materials such as high-end granite or marble, you may pay a good amount per square foot of the material. Some light fixtures, especially chandeliers that are hand-made, can also quickly eat up your budget. Stand-alone claw-foot tubs, expensive tiles, and high-end appliances are other items that will have a large impact on your bottom line.

At times these high-end finishes are worth it. They do typically last longer and are more durable than the cheaper options, so do keep that in mind. You may want to keep your budget balanced by looking at mid-level options or going with high-end in a few areas while selecting more budget-friendly options in others.

How Old Is Your Home?

Wiring, plumbing, and other things that are hidden behind the walls of your house may not be the first thing you think of when considering your home renovation process. However, if you own an older home, you may quickly learn that these items are no longer up to code.

In order for licensed electricians, plumbers, and others to work on your home and to get the proper city permits to do certain updates, you will need to bring the older systems up to current code. This means you may have to pay a large amount of money to have all of your wiring or pipes replaced.

Another factor to take into account is whether or not you are in an historic neighborhood. If you are, you may find that there are specific codes that apply to the exterior of your home. You may have to use specific materials to keep the home looking like it did when it was built. These materials and the processes necessary to apply them to the home to keep its historic look can also be very costly.

You may even find that some of your renovations such as adding on or enclosing a patio cannot be done due to historic neighborhood rules. On the other hand, if your home is on the National Register of Historic Places, you may be able to apply for financial assistance to keep the property in good condition.

Don’t Forget the Fees and Other Costs

Many people tend to leave off the smaller fees from their renovation checklist. For example, the permits mentioned above are not free. You will have to pay your local city or state authorities for these permits. Another cost is, of course, the amount your contractor and other subcontractors charge. Then there’s the cost of hauling away any debris from the demolition. If any of the changes affect the exterior of your home, you may have to pay to redo some of the landscaping, too.

 

If you are doing a full renovation that requires walls be removed, it’s very likely that you will not be able to live in the home while the project is ongoing. This means you may have to pay for a hotel or short-term rental. You may also need to hire a moving company to move your furniture and other items to a storage unit while the remodel occurs.

Depending on where you live during the renovation, you may have higher gas costs because your commute to work is longer, and you may end up eating out more often. None of these costs are related to your home renovation design, but you do need to be sure you account for them in your overall renovation budget.