A renovation in living spaces is by no means a small task. It can get expensive, and without planning or forethought, it may blow up your budget.
With that in mind, let’s take a look at house renovation trends this 2021 to get a better idea of what to expect.
The Cost of Home Renovations
Based on the data from HomeAdvisor, the average cost of reno projects in 2020 was about $46,755, with a typical range of $18,163 to $76,199. However, this number only considers those homeowners who completed one to two projects at a time.
This 2021 home renovation price guide is also a good reference point. You also need to consider your home’s resale value, so make sure to adjust your estimates accordingly.
What factors affect the cost of home improvements?
Several factors can impact how much you’ll spend when remodeling a certain space in your humble abode, including:
In general, renovating old homes cost more than newer ones. These old living spaces are most likely to have underlying problems you need to deal with during construction. What’s more, the work required to meet the current building codes can be more extensive.
The square footage space has, the more expensive it can get when you renovate. As the size of the area you need to renovate will increase, your budget follows.
Your remodeling cost can also get affected by the cost of living in your area. Even the base costs of materials like appliances and countertops and labor costs for a contractor can be more expensive depending on where you live.
4. Material and Labor
Data from a remodeling magazine estimates that hiring labor can inflate your cost by up to 18.6% to 50.8%. Likewise, choosing costly materials like high-end living room TV or custom kitchen cabinets will also add to the final price.
Now that you know what can affect the cost of renovating your real estate, let’s move on to creating a realistic budget. If you do it right, your remodeling project can put a lot of equity in your pocket. Follow the steps below:
1. Think about your financing options
Not all people can afford to pay an entire real estate renovation in cash. The first step is to consider your financing options. For instance, you can take up a mortgage loan or do your own research of various loan options available to you. What’s important is that you get your finances in order first to have a better idea of how much you can spend.
2. Decide on what you really want
After you’ve gathered data and have your finances in place, the next thing to do is decide how you want your space remodeling project to look. When you get cost estimates, every contractor will ask for this. The more details homeowners can give, the more accurate the estimates will be.
Spend some time looking at home improvement ideas online, or visit showrooms of a home office, bathroom, backyard patio, or anything you wish to take inspiration from. Looking at home improvement trends today will help you get a clear picture of how you want every room to look and what costs to expect.
3. Get cost estimates
Already have an idea of how you want your home office or dining room to look after renovating? Then the next step is to get free cost estimates from different contractors. Ask for a “hard” estimate that includes a detailed list of the costs, as well as the timeline for renovating a certain space.
4. Have a backup plan
What if the idea you have for outdoor living ends us not being feasible? House renovations often end up costing more than initial estimates because of unexpected upgrades or mishaps along the way. This is why when you come up with your budget, add some elbow room of about ten to twenty percent to the budget to account for unexpected expenses.
Tips To Save on Home Renovation
Whether you’re renovating the kitchen, bathroom, or just the walls at home, you must stand firm on your budget. Redecorating or renovating can quickly drain out your hard-earned cash. Here are two tips to ensure you don’t blow up your budget:
1. Choose the right materials
Many homeowners make the mistake of using high-end materials, which can add thousands of dollars to your final costs. Be smart and select where you splurge and where you save. A rule of thumb is to invest a huge part of your money in every room’s focal point features like high-end appliances, then choose midrange items everywhere else.
High-priced items are often priced by the square foot, so take note of the size of the room when creating your budget. Generally, the more square footage your home has, the more your materials will cost.
2. Keep the same layout
The cost of moving plumbing and electrical features around your home can add up fast. For instance, if you’re doing a kitchen renovation, you can save money if you leave the appliances where they currently are and keep the layout as is.
You’re betting off spending your money on adding customized cabinets, new fixtures, or countertops instead.
Plan, Plan, and Plan
It’s definitely a costly undertaking to remodel an entire home or certain rooms. But if you carefully plan everything out, it becomes easier to stick to a realistic budget. Now that you’re ready and armed with the right knowledge, you can take on any home improvement project.