A home remodel usually costs tens of thousands of dollars. One would assume it is out of their budget. However, home values are rising, and thanks to low mortgage rates, people are building equity rapidly. According to data by Black Knight, homeowners currently have access to $48,000 in tappable equity. This is helping them fund renovation projects through lines of credit (HELOC) or home equity loans.
Don’t take a breath of relief just yet. Though the expense part of the renovation project is solved, it is subject to increase due to supply chain issues and labor costs. Building materials are not cheap, and you might have to dip into your savings based on your choice.
With that said, let’s look at the numbers:
Home Renovation Cost
The cost of a home renovation depends on numerous factors. The starting cost is $20 per square foot and can go up to $150. Then there’s the whole story of who you hire, time of year, location, market demand, the materials and products you choose, and the list goes on.
Based on all this, a minor home remodel would probably cost $40,000, and a major one $300,000. These numbers are not accurate and subject to change according to what’s trending.
The following chart shows how much it costs to do the most common renovations in the space of 2,500 square feet:
|Common Renovations||Average Renovation Cost|
|Kitchen||$10,000 to $50,000 (Average: $20,474)|
|Window Replacement||$8,500 to $20,000 for 10 Frames and Windows
*The cost varies based on the glass type you choose, such as frameless glass is more expensive than glass with an aluminum frame.
|New Floors||$2,800 for Laminate and $4,400 for Wood|
|Contractor Costs||10% to 15% of the Renovation’s Total Cost|
Making a Budget
The size of the renovation project is an important factor in setting the budget. The first thing you need to do is find out your house’s current value and then make a list based on the following:
- Needs vs. wants
- Your financing options
- Material cost
- Quotes from various contractors
- Home insurance needs
- Post-renovation landscaping and clean-up cost
- ROI potential
- Temporary relocation cost (In a full-scale renovation)
- 20% savings for unexpected costs
Now that you know how to make your budget for a partial or complete home renovation project, you can easily decide what changes to make to your property. A typical home renovation usually includes repainting the interior, installing frameless glass windows, sprucing up the bathroom, changing the kitchen cabinets, installing a new countertop, and adding a deck in the backyard. These promise a high ROI.
The aim of your renovation project should be to make it attractive to potential buyers. If you decide to sell the house in the future, you will be able to market it in a more appealing light.
Get in touch with Sky Glass Aluminum to buy quality glass supplies for your home renovation project. We have installed custom frameless glass and insulated glass in several households and offices. Our 20 years of experience in this field makes us an expert in designing custom doors and frames. For more information, call on 972-807-9616.