Renovating a Home: How Much Will My Remodel Cost?

Many hopeful homebuyers seek to save money by buying a fixer-upper and doing most of the renovations themselves. This is a proven method for those who have a knack for home improvement and aren’t afraid to get their hands dirty.

However, estimating the cost of a remodel can be difficult. There are many costs you may not be aware of, and others that are easy to go over budget on.

In this article, we’re going to talk about the cost of an average remodel, and some lesser-known costs that you might be forgetting to factor into your budget.

Average remodeling costs

As you might guess, the cost of a remodel can vary greatly. Things like the size of the home, the number of rooms you’re remodeling, and the type of repairs you’ll be making all factor into the equation.

Some repairs can be quite costly. Septic system replacements can cost several thousands of dollars depending on the type of system you need. And, if you’re buying an old home, you’ll need to look out for expensive fixes like asbestos removal and foundation damage.

According to one report, most Americans spent between $17,000 and $61,000 on their remodel, with the average renovation cost being around $37,000.

If you’re hiring a contractor for the bulk of your remodel, expect them to charge between 10% and 15% of the total cost.

Lesser known costs of a home renovation

Remodeling a home isn’t as simple as looking up a contractor and telling them to give you the bill once it’s finished, and that’s probably a good thing because odds are you would be shocked by the cost.

First, you’ll pay a contractor to do a walkthrough and estimate costs. Next, you’ll need to get any permits that are required for your renovations.

If you plan on doing the renovations yourself, there are a few costs you’ll need to consider. First, understand that you likely won’t be able to take advantage of all of the discounts that contractors can, meaning your building materials may be more expensive than expected. Similarly, the cost of tools for the project adds up quickly. And, when you make mistakes–we all do, we’re only human–you’ll be paying for it out of pocket.

Knowing your long term goals

An important consideration for a remodel is to look toward the future. Do you want to sell your home within the next few years? If so, you might consider going with less expensive materials–such as generic kitchen cabinets rather than custom-built–to save money while still increasing the value of the home.

However, if you plan on being in this home for decades or more, it may be worth the extra money now to make sure you are happy with your home for years to come.

Remodeling a home can be a memorable and rewarding endeavor. You get the chance to take a house that you see potential in and make it truly your own. Now that you know the costs, you’ll be better prepared for planning your home renovation.

Top reasons for home renovations before you sell

Two individuals and a dog

Before listing a home on the real estate market, you may be considering making renovations. Home renovations can be
costly and depending on the home upgrade being done, can be time-consuming. 

With these things in mind, you may be wondering if pursuing a home upgrade before selling your property is worth the
extra work. 

Increase property value 

Both interior and exterior home upgrades can increase the value of your property. For example, let’s say you decide
to replace your garage door –  it’s estimated, this replacement cost can be recouped over 106 percent once the
home is sold. Not only do you recover the cost of the project, you also gain money in return. 

Working with a real estate professional can help you decide if home improvements are worth your time and money. Some
markets may offer the opportunity for great profit from upgrades, while others not so much. 

Attract more potential homebuyers

Home upgrades polish up and beautify your property, which in turn can make it more attractive to potential
homebuyers. 

Exterior upgrades to your property can help to boost your home’s curb appeal. For example, on average, it costs $300
to 3,000 to upgrade a concrete driveway. This single upgrade can increase your properties value anywhere from 5 to
10 percent, which in turn makes you quite a profit. 

Starting home improvement projects requires a deal of research and work, so take your time along the way. Working
with a real estate professional can help you decide if your project is worth it and where to get started.