How Much Will My Home Renovation Cost? (Find OUT)

Looking to get a renovation done on your home? You’re not alone. According to the National Association of Home Builders (NAHB), home renovations are expected to grow at an annual rate of over 4 percent through 2022. 

And with good reason: It’s estimated that homeowners who invest in their home by renovating will see their equity increase by up to 35 percent! But before you break out the sledge hammers, let’s take a step back and look at what goes into planning a successful project starting with understanding how much it will cost.

How Much Will Your Home Renovation Cost?

Sure, here is the single column takeaway table based on the TITLE:

Takeaways
Home renovations require careful planning to ensure your project stays within budget and meets your design goals.
It’s important to consider your budget, timeline, and contractor qualifications when planning a home renovation project.
There are steps you can take to save money during a home renovation, such as repurposing existing materials and hiring the right contractors.
Finding reliable home improvement contractors can be challenging, but there are resources available to help you choose a trustworthy professional.
Understanding the home renovation planning process is essential to ensure your project runs smoothly and meets your design vision.

Location

Location is a major factor in determining the cost of your renovation. As you might expect, building materials and labor are more expensive in urban areas than they are in rural ones. The same goes for communities with high costs of living versus those with low costs of living. 

For example, coastal communities have higher costs than inland areas due to the additional expense associated with transporting goods over water (as well as the generally higher cost of waterfront property). 

In general, if you’re looking to save money on your renovation project by doing it yourself or hiring someone local who doesn’t have much experience working on homes like yours, you’ll want to avoid these types of projects altogether unless absolutely necessary they’ll end up costing you too much down the road.

Planning a home renovation can be overwhelming, but with the right information, you can make the process smoother. Our guide on how do I plan a home renovation project? provides tips on setting goals, creating a budget, and hiring contractors that can help you achieve your dream home.

Project Scope

Project scope is the definition of the work that is to be done. It’s important to define project scope before starting a renovation project, because this gives you an idea of how much it will cost and how long it will take.

Project scope can be defined as:

  • What’s being renovated? This could include floors, walls, bathrooms, kitchens and more.
  • What materials are needed for the renovation? Examples include paint colors and flooring choices.
  • How many contractors will be involved in doing the work? For example…if you need plumbing done then there may be plumbers involved but also electricians because electricity needs to run through pipes!

Project Scope Table

Key Components of Project ScopeDescription
Goals and ObjectivesA clear understanding of the design goals and objectives of the renovation project
DeliverablesClearly defined targets that need to be achieved before the renovation project can be considered complete
TimelineA well-defined timeline outlining when specific tasks and deliverables will be completed
BudgetA detailed budget outlining projected costs of the renovation project
ResourcesIdentifying the resources such as skills, materials and equipment required to complete the renovation project
Risks and ConstraintsIdentifying potential risks and limitations that may hinder the successful completion of the renovation project

The table above highlights the key components that make up a project scope. By defining the project scope, homeowners can have a clearer understanding of the renovation project before it commences, identifying the time, resources, and budget required to complete it successfully.

Custom Builds

So far, we’ve covered the basics of designing and building a home renovation project. But if you’re anything like me, you might be wondering how much your dream home would cost.

If you’re considering a custom build, that’s an important question to ask—and one with no easy answer. The price tag on a custom build can vary wildly depending on what materials and finishes are included in your design. For example:

A large kitchen island with built-in seating will cost more than a simple countertop with stools at each end; therefore, if both options are included in your design (the latter being more flexible), then it stands to reason that your final price tag will be higher as well.

High-end bathroom fixtures such as Kohler faucets tend to be pricier than their mainstream counterparts from Moen or Delta; however, there are also more affordable options available from those brands that offer comparable quality but at lower prices than their luxury cousins do (and perhaps even better quality). 

Again though your choice of faucet makes an impact on the total cost of your renovation project regardless of whether it was made by Kohler or Moen/Delta!

Plumbing problems are a common issue in many homes. If you’re wondering how do I fix my plumbing?, our comprehensive guide offers step-by-step instructions on how to identify and fix common plumbing problems, as well as tips on when to call a professional plumber.

Living Quarters

If you are living in your house while the renovation is being completed, it will be more costly to do so. 

This is because there will be many delays and interruptions to your life as well as additional costs for materials like furniture or appliances that you may need to purchase for temporary use during the project.

If you are not living in your home during the renovation period, then it can be more cost-effective. 

This is especially true if major renovations need to take place such as repairing structural issues with walls or floors, installing new plumbing and electrical systems or replacing old appliances or fixtures throughout.

Hiring Contractors

Once you’ve decided on the scope of your project, it’s time to find a contractor. A good place to start is by asking friends and family for recommendations. 

You can also research local contractors online or check in with your city’s website for a list of approved professionals. (You’ll likely be able to use this list for reference as well.)

Once you have a few names in mind, it’s time to interview them! Make sure you ask all the questions below so that you can compare quotes from multiple companies:

How long has the company been in business?

What kind of projects have they worked on? Have they ever done anything similar to what I’m looking for? If not, how do they plan on resolving any issues that arise during their construction process?

What will be included in my quote? Different contractors may offer slightly different services depending on their area of expertise; some might specialize solely in kitchen remodels while others might also offer bathroom upgrades or even full home renovations. 

Be explicit about what exactly needs fixing and how much work needs doing and make sure that whatever items are listed under “required” were discussed beforehand so no surprises come up when payment comes due!

Home renovations require planning and preparation to ensure everything runs smoothly. Our guide on how do home renovations work? provides an overview of the renovation process, including what to expect during each stage, how to manage your budget, and how to hire the right contractors.

Financing the Project

You will want to talk about the following factors with your loan officer:

How much money you need for the project. The cost of materials, labor and permit fees can vary widely depending on where you live. 

If your contractor makes mistakes during the renovation, they will have to pay for those mistakes out of their own pocket; so it’s good to have a sense of what these costs might be before starting work.

How much money you can borrow from the bank or credit union. Although many people think they’ll be able to get a construction loan based on their good credit score alone, that isn’t always true—especially if they’re trying to borrow more than 80% of the value of their home (i.e., buying an expensive new kitchen). 

In fact, some banks won’t approve loans over $100k unless there is equity in both homes’ values above that amount (so if one house has a market value of $200k but another has only been appraised at $120k for example). 

You may need savings set aside as well so make sure those funds are available before signing any contracts or committing yourself financially!

Financing the Project Table

Factors to ConsiderDescription
Loan TypeDifferent types of loans are available for financing home renovation projects, including personal loans, home equity loans, and government-backed loans. Homeowners should carefully consider which loan type best aligns with their financial needs and renovation goals.
Loan AmountThe loan amount will depend on various factors such as the scope of the project, the equity in the home, and the borrower’s credit score. Homeowners must have a realistic understanding of how much funding they will require to complete the renovation project.
Interest RatesInterest rates for home renovation loans can vary widely based on loan type, borrower credit score, and current market rates. Homeowners should shop around and compare rates from different lenders to find the best financing option that fits their needs.
Repayment TermsRepayment terms for home renovation loans will vary based on the loan type and lender. Homeowners should consider the repayment terms carefully and ensure they can comfortably make monthly payments before accepting an offer.
Additional CostsIn addition to the loan amount and interest rates, homeowners should consider other costs associated with borrowing money for a renovation project. These may include closing costs, origination fees, and other expenses.

The table above outlines the key factors homeowners should consider when financing a home renovation project. By understanding the options available, borrowers can make an informed decision when it comes to choosing the right loan type, amount, and repayment terms that align with their financial goals and renovation vision.

Surprises

The best way to avoid surprises is to know what you’re getting into before you start.

Surprises can happen at any time during the project—from the discovery of a termite infestation to an unexpected change in design plans. 

This is why it’s important to find a contractor who will do their best to keep your costs as low as possible. If they’re not willing or able, then it’s probably time for them to go!

If you’re looking for professional help with your home renovation project, it’s essential to find a reliable contractor. Our guide on how do I find home improvement contractors? offers tips on finding reputable contractors, asking the right questions, and avoiding scams, so you can hire someone you trust to get the job done.

Job Duration

When you’re planning to renovate your home, it’s important to know how many days the project will take. This information is especially critical if you’re planning on taking a vacation while the work is being done.

Remember: You need to plan for permits and inspections as well, which can add days or weeks onto your timeline.

It’s also worth noting that some contractors are likely to ask for a few extra days because of their own scheduling issues (they may be working on another job that week), weather-related delays, or other unforeseen circumstances.

Materials Used

Materials cost more than you think.

As with any project, the materials used in your home renovation can be expensive depending on their quality and how they’re used in the space. For example, upgrading from a vinyl plank flooring to hardwood floors will cost more than you might think. 

But simply replacing an old window with a new one of the same size may be much cheaper than expected because some companies offer discounts for homeowners who buy multiple windows at once. 

This is just one example of how things like discounts and bulk purchase options can help bring down costs for projects like this one.

Home renovation plans can be confusing, but our guide on how do I get a home renovation plan explained? simplifies the process. From understanding the design process to creating a materials list, our comprehensive guide walks you through everything you need to know to get started.

Required Permits

You should also know that a building permit is required for any home renovation project. The permit will be issued by your local municipality and must be obtained before any work can begin. The cost of the permit varies from municipality to municipality, but it’s typically around $100 per job.

Design Fees

Design fees are the costs you pay to an architect or designer to create your home renovation plans. They’re not included in the total project cost and should be paid separately.

Design fees vary by project and designer, but they are typically a percentage of the total construction cost for your home renovation project. For example, if you have a small bathroom remodel project that costs $15,000 and your design fee is 5%, then this means that $750 will be charged as a design fee (5% of $15,000).

Taxes and Insurance

If you’re required to carry insurance on your home, there are a few things that you should know. The cost of insurance tends to go up in areas with a high rate of crime or disaster risk and will be higher if your home is historically significant. 

If you have an older house, particularly one built before 1978 (when lead-based paint was no longer allowed), it’s likely that you’ll need additional coverage as well.

Using contractors instead of doing the work yourself means not only saving time but also saving money—you can expect to pay between 10% and 15% less for labor costs when hiring professionals rather than attempting DIY projects yourself. 

However, keep in mind that many contractors charge premiums for specialized skills like electrical wiring repairs or plumbing repairs; those charges are often included in their estimate price tags so be sure to ask about them if they don’t appear in the initial quote provided by any contractor whom you might consider hiring!

Conclusion

The total cost to renovate your home is always going to be a moving target. But with a little research, you can make sure you’re getting a good deal on your renovation—and that the project will stay within budget.

Further Reading

This Architectural Digest article breaks down the costs of specific home renovation projects, from small upgrades to larger overhauls, so you can see what to expect with your budget.

This Old House article offers tips on how to save money during a home renovation, including strategies for cutting costs and ways to budget for your project.

Forbes’ home renovation cost guide provides insight on how to finance a home renovation, including types of loans and financial assistance programs available to homeowners.

FAQs

What should I consider when planning a home renovation project?

When planning a home renovation project, it’s important to consider your budget, design goals, timeline, and hiring contractors.

How much does it cost to renovate a house?

The cost of renovating a house can vary widely depending on the scope of the project, location, and other factors.

Are there ways to save money during a home renovation?

Yes, there are several ways to save money during a home renovation, such as repurposing existing materials, sticking to a budget, and hiring the right contractors.

How do I find reliable home improvement contractors?

Finding reliable home improvement contractors can be challenging, but there are steps you can take to ensure you hire someone trustworthy.

Do I need a home renovation plan explained to me before starting a project?

Yes, it’s essential to understand the home renovation planning process before starting a project.