Budgeting For a Home Remodeling Project

It’s never easy to stick to a budget. It’s considerably more difficult to create a budget for a significant project you’ve never done before. When it comes to home renovation expenditures, creating a realistic budget necessitates a well-thought-out strategy and extensive research.

Thankfully, we’ve already done the most of the legwork for you. Simply follow the steps below to generate a remodeling budget that will prevent you from going beyond on your next project.

How Much Does a House Remodel Cost?

The average cost of upgrading a property less than 1,000 square feet is $18,347, according to HomeAdvisor but does not account for the 30% increase in costs of material this year, so figure that closer to $23,850. The average cost of a home in the 3,000 to 4,000 square foot area is $470,121 in Southern California. Renovations to an older property are more expensive than those to a modern one, particularly if the wiring, plumbing, and other systems aren’t up to code.

Any refurbishment or home renovation should cost between $150 and $250 per square foot in most cases.

Prioritizing projects by room and building a budget around the cost of each individual job might be easier and more inexpensive when deciding on your home renovation budget. It’s also important to put a budget into your interior design or exterior plan if doing an outdoor project.

Average Home Renovation Costs in Southern California:

• Standard Kitchen remodels range in price from $30,000 to $70,000.
• Custom Kitchen – $65,000 – $150,000
• Standard Bathroom remodel – $18,000 – $30,000
• Custom Master Bathroom – $35,000 – $75,000
• Construction Blueprints – $10-$15 per square foot
• New Pool / Spa Blueprints – $8,000 – $18,000

What Should I Budget for a Home Renovation?

Consider the whole value of your home to obtain a sense of what your remodeling budget should be. You should not spend more than 10% to 15% of the value of your home on a single room. If you spend more, the renovation’s value will not increase proportionally to the value of your property.

For example, if your home is worth $400,000, you should spend no more than $60,000 on a kitchen or bathroom renovation. If your home is worth more, your renovation costs may be more.

The majority of the time, it’s difficult for a homeowner to know where to begin. Early on in the process, we recommend bringing in a design-build contractor that can chat about your goals and priorities during their initial consultation and lead you through a project that is within your budget.

Before you create a budget for your home remodeling, you must first figure out how you will pay for it. If you’re paying cash, taking out a loan, or asking for credit, your renovation budget must fall within the constraints of your financial resources.

Set aside 10 to 20% of your available funds for unforeseen expenses once you’ve determined how much you can afford to spend. This is critical. Something will go wrong, or the expense will be higher than expected. You may be sure you’ll have enough money to accomplish your project no matter what occurs if you set aside a percentage before you start.

We recommend putting aside 10% to 20% of your budget for a cushion. There should be very little unplanned work if you engage the correct contractor to undertake some exploratory demolition or investigation work early on. However, once a project begins, many of our clients bring out the ‘While you are here, can you also…’ list, which we can readily fulfill if the client has the necessary funds put aside.

Cost-cutting tips for Home Renovations in Southern California

Use the following suggestions when putting together your remodeling budget to save even more money:

• Consider conducting the demolition work yourself if you’re removing cabinets or ripping up tile as part of your makeover. This is an excellent technique to cut labor costs and save a few dollars as long as no expertise is necessary.
• You can order fittings and finishes on your own: Your contractor will most likely charge you an hourly rate and possibly a markup for doing your shopping for you. Make sure your plans are clear so your contractor understands you’re taking on the burden.
• Assume the role of project manager: Instead than relying on your general contractor to employ more subcontractors for your project, interview and select them yourself.
• Paint your own room: Having a room professionally painted can cost $300 or more. If you plan to do the essential painting yourself, you can save money on your renovation project.
• Whenever possible, buy used or refurbished things rather than buying everything fresh new. This might help you save a lot of money on appliances and finishes.