When it comes to your home renovation budget, here’s a simple rule of thumb to follow so you can avoid going overboard: Try not to spend more on a room than the value of that room as a percentage of your home’s overall value.1 Sound confusing?
It’s simple really. When you’re deciding on your home renovation budget, it can be easier and more affordable to prioritize projects by room and build a budget around the cost of each individual project.
For example, the average cost of renovating a home that is less than 1,000 square feet is $18,347. For homes in the 3,000 to 4,000 square foot range, the average cost climbs to $36,121. Typically, you can expect to spend at least $100-$200 per square foot on any renovation1. So depending on your square footage of each room in your home you’re likely looking at:
- Kitchen: $12,000 - $33,000
- Bathroom: $6,000 - $14,000
- Basement: $10,000 - $27,0001
While it’s important to consider the impact of renovations on your home’s value and their potential return on investment, you may have additional considerations that are less cut and dried. Are you a foodie who loves spending time whipping up new recipes? If so, you might consider going over that 10-to-15 percent guideline for your kitchen based on what’s important to you—just make sure it works with your overall budget and goals.
And remember to factor in an extra 10 to 20 percent (or more) of your renovation budget for unforeseen expenses, like unexpected electrical work.2
2 "How to Set a Home Renovation Budget", ChristyRabe.com
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