Many homeowners are not aware of how much money they need to be setting aside for a home renovation project. As one of the top home renovation contractors, we have the knowledge and expertise to assist you with figuring these costs out. We have put together this guide of common costs associated with home renovations to help you determine your average cost per project. Although the actual price might vary depending on your choice of materials, location, permit requirements and other factors, you can use this helpful information to make a general estimation.
When renovating your home, it’s best to focus on renovations that will add the most value to your property and make it more functional. Many home renovation contractors will agree that the remodels that generate the highest return on investment are bathrooms, kitchens and basements. These three are a great place to start, depending on your needs and your individual reasons for remodelling.
Some factors that can influence the cost of your home renovation include:
Age: During renovations of an older property, you might discover things like lead pipes, knob and tube wiring, asbestos and more, which can increase the expenses as these things will need to be replaced.
Size: If your home is spacious, then the costs involved with remodelling will be higher.
Labour Quality: If you are hiring a reputable home renovation contractor who has insurance, credentials and
experience, you might need to invest more in their services. However, the result will be well worth the money.
Complexity: Removing walls, needing to rearrange electrical or plumbing systems, or adding in an extension will need more investment.
Timeframe: If you are planning to sell your property soon, you might want to consider less expensive improvements like painting to freshen up your home on time.
Fixtures and finishes: Depending on the quality of the finishes and features like the bathtub, flooring, and more, overall remodelling costs can increase.
How Much Should You Budget?
There is no set number when it comes to budgeting for your home renovation. This is due to the fact that home sizes vary and the amount of work will be different. It’s advisable to set aside at least 15 percent to 20 percent of your budget in order to be able to manage unexpected costs. A general rule is to budget 1 percent to 2 percent of your home’s value every year for ongoing maintenance and improvements. Plus, consider building permits or designer fees, expenses for temporary relocation if needed and more.