Costs in Context: Property Value vs Remodel Budget
Many people wonder what remodel cost they should expect to encounter when contemplating home updates. In addition to the cost of the updates, homeowners should also consider the added value of
the project and the offset of costs by added equity in the home.
A good rule of thumb is to budget renovations based on the approximate value of each room as a percentage of the overall value of the home. This also helps level variations in geographic and market values to the homeowner’s situation.
Another consideration of course is the depth of renovation. Are you considering a “paint and paper” light surface update? A little more including countertops and hardware? Or the full monte tear out down to the studs and redo?
Most of our customers are wanting a level of remodel that they feel good about everyday they look at their home. They are looking for more feeling from their remodel than a simple light make over. They want an outcome that will bring a smile to their face each and every day they experience the results of their effort and investment.
This graphic helps illustrate the main areas often renovated and a good expectation of your costs for full renovation projects.
Based on the above recommendations, a homeowner could reasonably budget $40,000 for a master bath renovation in property valued at $500,000. In a $200,000 home, perhaps the budget should be more cost sensitive at $12,000.
This guideline serves as a solid benchmark when estimating ballpark costs for your next project. It is important where to spend your money, as well as when not too. You should calculate if you are spending too much for your neighborhood, or possibly not upgrading enough compared to the competition. Don’t throw your money away. When it comes time to move you want to be assured your project decisions were the right ones and have lasting impact. That’s where our expertise comes in. We are very familiar with the work going on in our area, what the trends are and the costs involved in your decision making. We are always happy to review your project and discuss your dreams!