What is the Right Amount to Spend on Home Renovation?
Q: When remodeling my house, I don’t want to spend a lot of money on updates that don’t actually increase my home value. How do I know how much is a smart amount to invest, and when I would be going overboard?
A: Jump into a renovation project without first setting a budget and you may spend loads of cash on all sorts of lovely options—from a marble island-top for your kitchen to a two-person hot tub for your new patio—that you won’t get paid back for if you sell your house in a few years.
While that may not be a concern if you’re staying put for the long haul, if you’re likely to move in 10 years or less, it pays to limit your spending to what you might reasonably hope to get back at resale.
Q: How much should you invest?
A: A rule of thumb is to spend no more on each room than the value of that room as a percentage of your overall house value (you can find an approximate value of your home at zillow.com).
Here’s how the percentages break down for each room:
Kitchen: 10% to 15% of house’s value
Kitchen renovation budget for a:
$300,000 house: $30,000 to $45,000
$500,000 house: $50,000 to $75,000
$750,000 house: $75,000 to $112,500
Master Bathroom Suite: 10% of house’s value
Master bathroom suite renovation budget for a:
$300,000 house: $30,000
$500,000 house: $50,000
$750,000 house: $75,000
Powder Room/Bathroom: 5% of house’s value
Powder room/bathroom renovation budget for a:
$300,000 house: $15,000
$500,000 house: $25,000
$750,000 house: $37,500
Finished Attic or Basement: 10% to 15% of house’s value
Attic or basement finishing budget for a:
$300,000 house: $30,000 to $45,000
$500,000 house: $50,000 to $75,000
$750,000 house: $75,000 to $112,500
Other Rooms: 1% to 3% of house’s value
Living room, dining room, or bedroom renovation budget for a:
$300,000 house: $3,000 to $9,000
$500,000 house: $5,000 to $15,000
$750,000 house: $7,500 to $22,500
Patio, Deck, Paths, and Plantings: 2% to 5% of house’s value
$300,000 house: $6,000 to $15,000
$500,000 house: $10,000 to $25,000
$750,000 house: $15,000 to $37,500
Q: When remodeling my house, I don’t want to spend a lot of money on updates that don’t actually increase my home value. How do I know how much is a smart amount to invest, and when I would be going overboard?
A: Jump into a renovation project without first setting a budget and you may spend loads of cash on all sorts of lovely options—from a marble island-top for your kitchen to a two-person hot tub for your new patio—that you won’t get paid back for if you sell your house in a few years.
While that may not be a concern if you’re staying put for the long haul, if you’re likely to move in 10 years or less, it pays to limit your spending to what you might reasonably hope to get back at resale.
Q: How much should you invest?
A: A rule of thumb is to spend no more on each room than the value of that room as a percentage of your overall house value (you can find an approximate value of your home at zillow.com).
Here’s how the percentages break down for each room:
Kitchen: 10% to 15% of house’s value
Kitchen renovation budget for a:
$300,000 house: $30,000 to $45,000
$500,000 house: $50,000 to $75,000
$750,000 house: $75,000 to $112,500
Master Bathroom Suite: 10% of house’s value
Master bathroom suite renovation budget for a:
$300,000 house: $30,000
$500,000 house: $50,000
$750,000 house: $75,000
Powder Room/Bathroom: 5% of house’s value
Powder room/bathroom renovation budget for a:
$300,000 house: $15,000
$500,000 house: $25,000
$750,000 house: $37,500
Finished Attic or Basement: 10% to 15% of house’s value
Attic or basement finishing budget for a:
$300,000 house: $30,000 to $45,000
$500,000 house: $50,000 to $75,000
$750,000 house: $75,000 to $112,500
Other Rooms: 1% to 3% of house’s value
Living room, dining room, or bedroom renovation budget for a:
$300,000 house: $3,000 to $9,000
$500,000 house: $5,000 to $15,000
$750,000 house: $7,500 to $22,500
Patio, Deck, Paths, and Plantings: 2% to 5% of house’s value
$300,000 house: $6,000 to $15,000
$500,000 house: $10,000 to $25,000
$750,000 house: $15,000 to $37,500
Source: Money.com
61 COMMENTS
Braden Bills
September 5, 2018, 12:09 pm REPLYI want to make sure that I get my kitchen remodeled properly. It makes sense that I would want to ensure that I plan it out ahead of time! That way I can ensure that I can afford the remodel.
Emma Clemantine
October 3, 2018, 3:13 am REPLYI really like to appreciate the way you have written this article in depth mentioning all the amount and budget for different types..I am glad that I came across such a great article.Bathroom remodeling is a tough job but those tips and ideas are amazing making it easy.You have shared such a great collection which can be so helpful to renovate the bathroom.
Finch Constructions
February 19, 2019, 8:51 pm REPLYI couldn’t agree more! We should not spend on updates that doesn’t really increase the value of our home (if we’re planning to resell the house in years to come). Thanks for providing the percentage breakdown for each room, this numbers will come in handy in my next renovation projects.
Braden Bills
March 21, 2019, 9:31 am REPLYI want to make sure that I get my bathroom renovated nicely. It makes sense that I would want to keep track of my finances! I’ll make sure that I only spend money on updates that will increase the value of my home.
Mike Lee
April 3, 2019, 11:23 am REPLYIt is good to look at how much to spend on a home renovation. It is good to think about how the portion of your house the room is. I like this idea very much and will incorporate it.