Whether you’re looking to increase the value of your home in advance of a sale or hoping to spruce up your spaces to make them more your own, chances are there might be a renovation project in your future. The home remodeling market has never been hotter. In fact, home renovation spending has grown 15% in the last year to a median of $15,000, according to Houzz.
Still, many excited homeowners are going way over budget to finish renovation projects from a lack of preparation and budgeting. So, before adding that enclosed porch, get the lay of the home remodeling landscape to keep your home renovation projects on track and on budget.
Renovate the whole house
While a complete redesign might sound like a huge project, more than half of U.S. homeowners are considering it as an alternative to buying a new home. If that includes you, you might be in good company, but be sure to look at the numbers before undertaking this significant project. The average cost to remodel a house is $47,000, though this can vary. While most fall between $18,009 and $76,499, some higher-end remodeling projects average $150,000.
Many factors contribute to this cost, including:
- Room size
- Underlying issues
- Material costs
- Project size
It can be a tall order to estimate the cost of a house remodel. You’ll want to factor in big-ticket items like appliances, cabinetry, structural repairs, and labor.
Pro tip: Add 20% to all home renovation costs for unplanned challenges and unforeseen overages to keep your renovations under budget.
Redo your kitchen
Perhaps the most frequent room renovation, the kitchen is traditionally one of the first places homeowners remodel. Why? For starters, it’s one of the most popular rooms in the house (who doesn’t love food?). A renovated kitchen is also on the top of many potential buyers’ lists when looking for a new home (so it’s a great value add).
Before you get cooking, you’ll want to keep in mind the average kitchen remodeling clocks in at $25,200 (or $150 per square foot). Lower end (and smaller) projects start at $4,000, but it’s not unusual to spend $60,000 or more for high-end projects.1
Refurbish the bathroom
A refreshed bathroom is another popular fixture on homeowners’ (and potential buyers’) renovation wish lists. Don’t start sorting through tile samples just yet. Remodeling a bathroom can average $125 per square foot, with total costs falling between $2,500 to $25,000 or more, depending on your finishes. However, if you ever intend to sell, a sparkling, modern bathroom can give your home that luxurious touch and could command a buyer’s attention.
Update your HVAC system
For homeowners renovating older properties or looking to install more efficient and environmentally friendly technology in their homes, an HVAC update may be high on the list of projects. Staying cooler in the summer and warmer in the winter might be priceless, but it can come with a hefty price tag of its own. So be prepared to pay anywhere from $5,000 to $10,000, with the national average at $7,000. And remember to stay on top of maintenance to ensure your cooling and heating runs smoothly (and to avoid needing an emergency replacement, which can be particularly costly).
Remodel the garage
Nothing says curb appeal like a new garage, but a whole remodel can range, on average, between $7,000 – $15,000. While replacing just a garage door is a smaller upgrade, it can still pack significant ROI at a much more affordable average cost of $3,695.
Rework your roof and exteriors
Renovating your roof and home exterior can come with many benefits, such as reshaping your home’s appearance and protecting what’s on the inside in the process.
The cost of a new roof averages around $8,000, but can vary depending on the size, pitch, application and materials. It may feel steep but remember it’s an investment that can last 20 to 30 years. And don’t neglect the rest of your home’s exterior. A quick repaint averages around $1,200 and deck and porch upgrades cost about $2,500 and $1,500, respectively.
Make it all affordable
Home renovation costs can add up quickly, and budgeting for it all isn’t easy. By mapping out your priority projects and the potential costs before demo day, you can realize your dream home renovation while protecting your financial future.
Review your home improvement loan options with your Ally Lending provider.
And if you’re looking to go bigger, consider a cash-out refinance to cover costly renovations.
Simplify renovation financing with Ally Lending.