Remodeling your home is one of the most thrilling projects you can do, but the big question everyone asks before they start is, how much does it cost to remodel a house? Finding the sweet spot between your fantasy upgrades and realistic budget constraints isn’t easy. Spend too little and you might miss significant upgrades; spend too much and it can be hard to recoup your investment when it comes time to sell.
In this ultimate process, we’ll unpack what influences the cost of a renovation, share budgeting hacks, shed light on all-too-common miscalculations to steer clear of and provide expert knowledge to help you make a smart financial decision when planning your reno.
Not all renovations are created equal. How much should I spend?
For instance, a kitchen remodel in an urban city can cost twice as much as it would in a smaller town. That’s why construction estimation is essential in the planning phase, helping you calculate costs in advance and prevent unexpected expenses during the project.
It’s a well-known rule of thumb that you should spend 5% to 15% of your home’s total value on renovations. That way you know that the improvements are substantial enough to create comfort and add value, but not so grandiose that you overcapitalize.
Example: If the value of your home is around $300,000, you may want to consider renovations in the range of $15,000 to $45,000 as appropriate.
When considering how much to invest in an updating your home, target the following areas first, which provide some of the best ROI:
Referred to as the “heart of the home,” kitchen renovations have an ROI of up to 70%. New cabinetry, energy-efficient appliances and updated countertops enhance resale value as well as quality of life.
Bathrooms are equally important. A new spa-like bathroom makes an impact. The addition of a walk-in shower or double vanity can add tremendous value.
Curb Appeal & Exterior
First impressions matter. Landscaping, a fresh coat of exterior paint or a new front door can help it look more appealing to passers-by.
Improvements such as insulation, windows or solar panels don’t just keep bills down, they also attract eco-conscious buyers.
Follow these commonsense steps to prevent your bill from putting the rest of your budget in peril:
Pro Tip: Plan the project in phases, rather than trying to complete it all at once. You avoid some pressure but gain flexibility.
So many of us regret our invitation to renovator misery. Here are the biggest pitfalls:
When it comes to renovations, done well, they can be life-changing; done poorly, they can be stress-inducing.
Plus Side: Makes for a more comfortable, beautiful space; raises home value.
Negative Side: Can deplete savings, stress your family and take longer than planned.
Realism about both will help you choose wisely.
These are some questions to consider before you sign on the dotted line:
You will prevent emotional overspending, and you’ll make sure your renovation is enjoyable and practical by answering these.
As for how much you should spend to renovate your home, that depends on its actual value and the size of the renovation project. Practicing smart budgeting, concentration in high-impact areas and sidestepping common errors will make the difference between achieving maximum comfort and maximizing return on investment. Renovating should feel like fun, not like treading water, so plan wisely and your dream home will be worth every penny.
The price varies, but a full house renovation can cost up to $150,000 in the U.S., depending on location, size and how much work you need to have done.
Some small remodels only require a few weeks, while full renovations can stretch for 6–12 months. A common mistake is underestimating time, so always budget extra for the unexpected.
Yes, but selectively. Concentrate on kitchens, bathrooms and curb appeal, which attract buyers and deliver the most return.
Absolutely. Options may include second mortgages on a home, personal loans or refinancing. But for any loan, be sure to compare rates and terms before you borrow.