Knowing how to identify your home renovation budget involves more than just plucking a number out of thin air. Although the costs of your renovation will be unique based on the size and scope of the project, there are ways you can calculate a rough figure.
And that’s exactly what we’ll discuss here. Below, you’ll find some tips for how to choose your home renovation budget.
How to Identify Your Home Renovation Budget
While these tips won’t give you an exact figure for your budget, you can easily use them to calculate your costs based on the size of your room and what you want to do to it.
Use Your Home’s Value
The first place to start is by looking at your home’s top-ceiling value. If you bought your home recently, this should be easy. But if not, you can use real estate websites to look at similar properties in similar areas. You might even be able to find information about your home’s current value online, too.
Your budget for a single room should never be more than 10-15% of your home’s value. For example, if your home is worth $200,000, the maximum should be $30,000.
Consider the Room You’re Renovating
Some rooms cost more than others to renovate, depending on what they contain. According to Forbes, a kitchen remodel could cost between $5,000 and $60,000. Similarly, a bathroom could cost between $2,500 and $30,000.
The room’s functionality will be the biggest factor, followed by its size. For example, a kitchen will be expensive because of the cooker, cabinetry, and other appliances. Something like a lounge or dining room, though, will be relatively inexpensive.
Another vital aspect of determining a budget is looking at how much things cost. You might have a specific floor material in mind, but a bit of shopping around could result in a cheaper – but very similar – alternative. The more research you do, the better equipped you’ll be to decide on a clear budget.
Add a Bit Extra
One of the best-known industry secrets is that renovation projects cost more than you think. Things will go wrong, and some aspects will cost more than you think. Set aside at least 10% of your budget for emergencies. Ideally, this should be taken from your overall budget but should be ‘extra’ money.
Figure Out What Can Be DIY
While you’ll want a contractor for specialist jobs, some things are relatively easy to do yourself. For example, stripping wallpaper, removing tiles, or other preparation jobs aren’t too difficult. And, on the subject of contractors, it’s always best to get quotes from several so you know what the job should cost.
Setting a budget for your home renovation project isn’t necessarily complicated, but it requires plenty of research. Arming yourself with the facts means you can make a more informed decision.
If you need a custom quote for your residential home renovation project, get in touch with PMG Custom Building. We can guide you through the process of creating a room that’s uniquely yours.