How to Budget For Home Improvement
Budgeting for home improvement can be a challenge. Whether you are considering adding a room, redoing the kitchen, or getting a full home remodel, you need to think about how much the project is going to cost. Some people do home renovations in order to put their house on the market. Others pursue home renovations because their family is growing, or they want to add more space while they enjoy their home. Let’s take a look at some tips that will help you budget for home improvement.
Look at the square footage being renovated
Many contractors will give you a quote for a home improvement project based upon square footage. Any type of major home overhaul could cost anywhere from $10 to $60 per square foot. While square footage is not the only determinant for a home improvement project, it’s a good starting point for setting a home improvement budget.
Look at construction materials
If you are doing any sort of home improvement, construction materials will also play a large factor in your budget. Sometimes, spending more money will stretch the life of the improvement that you are making on your home. Roofing is a great example of this. Three-tab asphalt shingles are generally fairly cheap and will last for 15 to 20 years on a home. However, composite shingles are a little bit more expensive, but will last for as long as 50 years, depending on the type you buy.
Consider the space in your home being renovated
This is a great way to budget for renovating individual rooms in your home. Simply consider the room as a percentage of your home’s value:
- Kitchen: Some realtors suggest that 16% of your home’s value is a good spend for a kitchen renovation, since this is one of the most important selling points of your home.
- Attic or basement: You should plan on spending 10% to 15% of your home’s value for these renovation projects, since these are structural areas of your home.
- Individual bedrooms and living rooms: Spend no more than 10% of your home’s value per room.
- Exterior home improvement projects: Budget three percent to five percent of your home’s value for roofing, siding, decks, and other projects.
Ask for a contractor who is 100% transparent with their pricing
Transparency entails getting the right information to make a choice about budget. Some contractors will not suggest options that are more expensive but could potentially add value to the home. Cost Plus Deals prides itself on providing 100% transparency. You will get all the possible options, the pros and cons of each, and transparent pricing. Not only will you get costs that are the most affordable on the market, you will also get reports on pricing as your project progresses.