Experts estimate that nearly 10.5 million remodeling and replacement projects will be completed in 2013. More than half of these remodels will help to maintain a primary residence while 30% are done to improve the resale value. Regardless of why you remodel, now is a great time to make improvements to your home.
According to MSN, the average remodeling project costs $44,734 and has a return of 57.7% when the home is sold. Try finding returns like that in the stock market. If you plan of doing some remodeling yourself, you should know which projects have the best return on capital.
3 Renovations with the Biggest Returns
- An attic bedroom has the highest return of invest at 73%. However, it is also one of the most expensive to accomplish with average costs coming in at $50,148.
- Kitchens also offer a great return on investment with an average return of 66%. Construction costs can vary depending on the complexity of the project, but expect to pay around $19,588 for a mid-range renovation.
- Bathrooms remodels typically cost $16,552 on average and result in a return of 62%. Again, this is a for a mid-range renovation as the costs vary from project to project.
Renovating on a Budget
Many people live on a budget, so a $44,000 might not be possible. However, there are ways to take advantage of savings and accomplish something similar to a high-end project. Whether you’re planning a small update or complete overhaul, check out these tips to help you cut costs and save money.
Why are you remodeling?
If the elements of the room are still in good condition, save money by painting, refreshing woodwork and installing new fixtures.
Prioritize the urgency of each project.
All of us would love to renovate several parts of our homes, but you must work on the most important projects first. If you have a safety issue or plumbing needs, take care of that stuff before less important jobs.
Outline everything the project entails.
The best way to prevent going overboard and blowing your budget is to anticipate your costs and plan ahead. Once you have an estimate, set aside an additional 15% to 20% as contingency cash. Hopefully, you will not use the money, but it’s important to have.
Can you do it yourself or will you hire a professional?
The best way to save money is to tackle a project on your own. YouTube is a fantastic place to watch how-to videos on anything from bathroom plumbing to hanging doors. Of course, there are major risks when you are solely responsible for any damages or problems that may arise.
Of homeowners polled, 42% plan to remodel on their own, 34% say they would hire a pro and 24% said they would split the work with a contractor.
Once you’ve made a plan, stick to it
Last, but not least, you must stick to your plan. Adding other projects will only increase costs and dip into your pockets. Even worse, you may run out of money and get left with an unfinished job. I don’t have to tell you how inconvenient this could be if you are renovating a bathroom or kitchen.
READERS: Have you or will you take on a major renovation this year? Did you do it yourself or hire someone? Where you in line with your budget or did you over spend?