It is so important we wanted to say it again: most people don’t understand how much a renovation will cost and as a result tend not to budget enough for everything on their wish list. How much you want to spend can be based on many factors such as – how much money you have access to (either through savings and/or borrowing options), the value of your home (you don’t want to over or under renovate based on the value of your home and neighbourhood), and how long you are planning to stay in the home (you may splurge more on some items if you are going to be staying in the home for many years to come and can enjoy those upgrades). This is where a good understanding of your needs and what you can compromise on becomes so important.
You will want to have a renovation budget in-line with the value of the home and the neighborhood you are living in. For example, HomeAdvisor.com recommends for a kitchen remodel to spend between 5%-15% of the home’s value on this project. You don’t want to over or under renovate for your area/ home’s value. A $30,000 kitchen renovation in a $2 million home will detract from the home’s value the same way a $100,000 kitchen renovation in a $300,000 home will not allow the homeowner to get a good return on that investment.
Tip #4: Plan for the unexpected