It’s no secret that home renovation and improvement projects can be expensive, but there are a variety of reasons why it’s often worth the cost. The potential return on your investment if you sell your home might be a consideration. Your enjoyment counts too. Imagine that you didn't recover the costs of remodeling when selling—would it still be worth it?
No matter what your reason for your home improvement project, here are budget tips to help ensure your project gets the results you want in a way you can afford.
How to budget for home renovations and improvements
Your home’s value can help you determine the scope of your remodeling projects, along with your budget. Experts use a guideline that assigns each room of your home a percentage of the overall value. For example, the kitchen is worth about 10%–15% of your home’s overall value, so one way of setting a budget could be to decide to spend up to 15% of the value of your home redoing your kitchen.1 It’s important to remember this is a good starting point but some renovations could cost more or less.
The internet also provides a wealth of resources when you’re getting started on a home improvement project. It can be a good idea to look for the average price of the project you need or want to do. That can help you decide if the project is doable, if you can afford it, and how you might pay for it.
- Try to find your area’s average cost of the project you’re considering. That can help you start thinking about how to pay for it.
- If you need help, consider hiring a professional to get the job done.
- Investigate all your options if you need to borrow money so that you can pay for your home improvements in the least expensive and most efficient way.
How much to consider budgeting for remodeling each room or part of your house
Here’s a room-by-room breakdown of average costs for a professional remodel, using nationwide data on the median cost of remodeling various rooms of a house.2 Keep in mind, depending on the size of your home and the nature of your project, you could spend more or less than these figures.
- Kitchen remodel: $10,000
- Bathroom remodel: $6,000
- Deck, porch, or patio replacement or addition: $5,100–$5,740
- Recreation room: $25,000
- Other room: $18,000
- HVAC replacement: $4,200
- Roof replacement: $8,200
- Exterior siding: $5,000