How-To: Create A Home Renovation Budget

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It is rare for a single home to encompass every buyer’s dream features. Some people build their dream home from the ground up, while others choose to remodel and create their perfect home through renovation and continuous improvements. While home renovation is exciting, it is critical to ensure your budget aligns with your expectations.

Here are our tips to help you create an informed home renovation budget:

1. Determine The Value of Your Home

When remodeling a home, homeowners should spend no more on each room than the value of that room as a percentage of your overall house value. Use the free Sari & Team Home Valuation Calculator as a starting point and utilize the information below to determine the appropriate budget.

Kitchen: 10% to 15% of house’s value

Kitchen renovation budget for a:

  • $300,000 house: $30,000 to $45,000
  • $500,000 house: $50,000 to $75,000
  • $750,000 house: $75,000 to $112,500

Master Bathroom Suite: 10% of house’s value

Master bathroom suite renovation budget for a:

  • $300,000 house: $30,000
  • $500,000 house: $50,000
  • $750,000 house: $75,000

Powder Room/Bathroom: 5% of house’s value

Powder room/bathroom renovation budget for a:

  • $300,000 house: $15,000
  • $500,000 house: $25,000
  • $750,000 house: $37,500

Finished Attic or Basement: 10% to 15% of house’s value

Attic or basement finishing budget for a:

  • $300,000 house: $30,000 to $45,000
  • $500,000 house: $50,000 to $75,000
  • $750,000 house: $75,000 to $112,500

Other Rooms: 1% to 3% of house’s value

Living room, dining room, or bedroom renovation budget for a:

  • $300,000 house: $3,000 to $9,000
  • $500,000 house: $5,000 to $15,000
  • $750,000 house: $7,500 to $22,500

Patio, Deck, Paths, and Plantings: 2% to 5% of house’s value

Patio, deck, paths or plantings renovation budget for a:

  • $300,000 house: $6,000 to $15,000
  • $500,000 house: $10,000 to $25,000
  • $750,000 house: $15,000 to $37,500

2. Consider Loan Options

There are a variety of loan options available for home renovation projects. The list below outlines a few options, but it is imperative to talk to your mortgage lender to determine which option is best for you. If you would like to be connected with one of Sari & Team’s trusted advisors, click here.

  • Refinance Your Mortgage
  • Cash-Out Refinance
  • HELOC
  • Home Equity Loan

3. Solicit Quotes From Multiple Contractors

We highly recommend getting bids from multiple contractors. Be sure to ask for references and utilize their feedback to guide your decision. If you would like to be connected with one of Sari & Team’s trustworthy contractors, give us a call at (949) 558-3100.


4. Expect The Unexpected

Despite working with a trusted contractor, unforeseen issues can often result in additional costs. We recommend erring on the safe side and factoring 10 to 20 percent of your contracted budget to cover in any unexpected costs.

 Read the full article here: https://www.zillow.com/blog/budget-for-home-renovations-177504/

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