I Created the Ultimate Home Renovation Budget Template (2024)

FAQs

What is the best way to track home renovation costs? ›

To create a renovation budget, you need a clear idea of what goes into the project, including the labor, material costs, and the delivery of the materials. Once you have the information, build your budget by creating a spreadsheet that factors in all the costs you might incur and each part of the renovation.

Generally speaking, when setting your home renovation budget, it's a good idea to avoid overspending on aspects that may not add much value to your home. One rule of thumb you can use for your home renovation budget is to spend no more than 20% of your home's value on renovations.

Home renovation is a huge undertaking, and almost invariably takes more time and costs more money than homeowners expect. Rasekh says it's a good idea to set 20 to 30 percent of the total cost of your project aside for the unexpected — that's up to 30 percent on top of the project's original cost estimate.

A $100,000 renovation budget can go a long way in transforming your living space and enhancing your home's functionality and value. By partnering with Multigroup Contracting, you can make the most of your budget and create a beautiful, custom home that meets your needs and exceeds your expectations.

HomeZada is an indispensable financial planning app for home management. It helps you plan and organize the financing of your home renovation and remodeling projects.

HomeZada helps you create a budget for all the items on your project, regardless of whether you DIY or hire a contractor. Track all your costs, receipts and invoices to compare against your budget.

"HGTV pays for some labor or costs to expedite production if needed, but generally, homeowners are paying for their services. And, they may have access to discounted services or goods." So a new kitchen island that costs $1,000 might actually cost $3,000 if the homeowners weren't being featured on a TV show.

Tell me the average cost of a house remodel? According to HomeAdvisor, the cost of a remodel was estimated at approximately $46,755. If this figure has to be included homeowners who complete only one or two projects at one time. Most homeowners should spend somewhere between $100,000 and $200k for a house renovation.

What is the profit margin on a home renovation? ›

According to the National Association of Home Builders, remodeling companies have an average gross profit margin of 24.9% and a net margin of 4.7%. In addition, the report suggests that the average profit margin for home remodeling has declined and gone flat over the past few years.

You should always, always, always get a home inspection — especially on fixer-uppers. If the inspection reveals only superficial repairs are needed — things like replacing broken doors/windows, repainting chipped walls, or adding some new shingles, then you've likely found a good investment.

Location plays a significant role, as does the choice of materials. You can your $100k budget towards a kitchen remodel, bathroom renovations, bedroom makeovers, or exterior upgrades. To maximize your return on investment, prioritize projects that add value to your home.

A more realistic budget would be around $50,000 – this allows you to do more than make changes in only one space. For under $50,000, you can make several renovations to a home and increase its value significantly, especially if you know how to cut costs without compromising on quality.