How Much Does it Really Cost to Remodel a Home?

It’s the weekend.  There’s finally one day this week where I’m not committed to any social functions, and the grocery shopping can wait until tomorrow.  I’ve curled up under my favorite blanket and turn on the TV to my guilty pleasure:  HGTV.  Fixer Upper has another episode where Chip and Joanna tear apart and remodel a family’s dream home, and as I’m watching the demolition process, I find myself questioning their budget.

“They have no idea how much they’re really going to spend on this house,” I say to myself. 

Next thing I know, my whole family is planted in front of the TV, discussing how much they ballpark costs in our area and how that would or wouldn’t be feasible for a certain lifestyle.

Now, I’ve remodeled a 31 foot pull-behind camper trailer—and there were surprises at every turn.  While I’m not a homeowner just yet, there are some questions I’ve searched myself in just a smaller square-foot renovation project to consider.

So How Much Does it Really Cost to Remodel a Home?

According to Home Advisor, “Most homeowners spend $17,000-$61,000, with an average cost found at $36,845.” 
That’s a HUGE spread.

Considering Remodeling?

There are numerous questions to ask, just for starters, is it going to be a remodel of one or multiple rooms?  Can this project be completed without a contractor/electrician/plumber?  (We cover a lot of these questions in our 5 Kitchen Remodel Tips post.)

The “Money Pit” Rooms

As it turns out, the most popular rooms to be remodeled are also some of the most expensive:  the kitchen and the bathroom.

            The Kitchen:  Average cost to remodel $20,474

Where does the money get spent?

·         Cabinetry/Hardware

·         Installation

·         Appliances

·         Countertops

·         Flooring

The Bathroom:  Average cost to remodel $13,000*

Where does the money go?

·         Bathtub/shower

·         Cabinets

·         Countertops

·         Lighting

·         Sink

·         Toilet

·         Flooring

Bottom Dollar-Hidden Costs

Once you’ve made the basic decisions about the remodel, it’s important to stick to the budget set and aim to spend under budget—because unwanted surprises nearly always pop up during a remodel.

 The biggest hidden costs for home renovations:

·         Local building permits and code violations

o   Check all local building codes and renovation permit costs.  In most cases, permit totals are configured as a percentage of the completed renovation cost.

·         Clean-up costs

o   Large dumpster rental for clean-up sit in the driveway and can add to the total budget.

·         Potential water damage/mold removal

o   It’s not uncommon for older homes to have a mold or asbestos problem—especially if they have no previous renovation history.  If the home has any of these issues, there can be a delay and unexpected costs in the project to hire a professional to address them.

Best Way to Pay for a Renovation

Having the ability to refresh a room or the entire house with an updated style unique to your wants and needs is one of the wonderful freedoms of being a homeowner.  But, with great power comes great responsibility—which means you also have the wonderful freedom of footing the bill.

Home Equity Loans are a smart way to finance and give you the give more financial freedom for any project, big or small.

When you’re a member of our credit union, you gain the tools for a bright financial future.

What’s on your renovation list?  How do you approach a new home project?

*The average cost for the bathroom is based on basic to mid-range upgrades.  A new shower could run anywhere from $500 to $10,000.