The past couple of years have seen skyrocketing interest in home renovations. Despite high building material costs during the pandemic, many homeowners jumped onto the idea of improving their homes, both for comfort and to gain returns on investment. Lumber prices have leveled off recently, and the renovation business is still hot. Here are a few things to know about the costs of home remodeling.
A: Numerous factors dictate the cost of home renovation. There isn’t a good rule of thumb that encompasses even some renovations as far as price is concerned. Expect to pay between $20 and $150 per square foot to hire a general contractor to perform a remodeling project. However, that isn’t the whole story. Who you hire, location, time of year, market demand and entire lists of other factors will determine the final price.
Completing a whole house remodel could cost over $300,000 or as little as $40,000. But, inexpensive remodeling is possible as well. Single room remodels or renovating individual parts of your house can cost just a few hundred dollars to a few thousand.
Q: How do you make a home renovation budget?
A: Making a home renovation budget is essential to the project’s success, whether big or small. The size of the project and the condition of your existing home are the most important factors to consider when starting to plan a renovation. However, determining what size the project should be is the tricky part.
An excellent place to start is to evaluate your home’s current value. As you plan your renovations, keep in mind that the remodeling price tag for no single room, except the kitchen, should exceed about 10% of the house’s current value. Kitchen renovations are more costly and, in some cases, can exceed 15% of the home’s value.
To get a ballpark estimate of what your renovation costs will be, start planning early and factor in all of the following items as you move forward:
- Make a list of needs vs. wants
- Find out your financing options
- Consider material costs if you’ll be doing some of the work yourself
- Get estimated prices from various contractors
- Determine your home insurance needs during and after the renovation
- Include clean-up and post-renovation landscaping costs
- Consider ROI potential for various parts of the project
- Calculate temporary relocation costs during construction if necessary
- Add between 10% and 20% to the total cost to cover unexpected expenses
Q: How do you save money on home renovations?
A: A quoted price that’s too high doesn’t have to be a deal breaker. There are numerous ways to lower your home renovation costs. Although you may not save a fortune by doing some of the work yourself, by cutting back on extravagant items or making small plan changes, the amount you save could be enough to go ahead with the project. If the price is still out of reach, compare your must-have list against your wants list and consider lessening the project’s scope.
Q: Is it better to move out during a home renovation?
A: The question of whether or not to move out during a renovation comes down to four factors: The size of the project, accommodation costs, renovation speed and health. Keep these things in mind when deciding if you should stay or go during a whole house remodel.
- If your home will be rendered unusable during construction, there is little option but to budget for temporarily moving out of the house.
- You may be able to somewhat offset the costs of temporary storage of your stuff and family accommodations by allowing the contractor to work faster and more efficiently in your absence. Discuss this idea with your contractor during the planning stages.
- Construction sites can be full of hazardous airborne particles and other physical hazards that simply aren’t good for you. In many cases, it’s best to stay somewhere else and protect your health during large projects.