If you are a homeowner who has been living for several years in their home, you have probably noticed that things don’t look as polished up and fresh anymore as they used to. The carpets and the furniture may look worn out; the kitchen cabinets may be squeaking and everything points that it’s time for a change. Whether you want a completely new kitchen, turn a room into an office or update the bathroom, you will need a nice sum of money to cover for it. But, how much should be enough and will it be worth it? Here are some tips to help you better estimate the value investment ratio.
Cost estimate for updating the kitchen and the bath
If we take for example that the kitchen accounts for 10-15% of the home value, it means that you shouldn’t spend more than 10-15% of the total home value on kitchen renovations. You can ask your real estate agent to conduct a comparative market analysis and see how much your home is worth on the market. For example, if we take an average home in Edmonton, which currently costs around $364,000, not more than $54,000 should be spent to renovate the kitchen. The kitchen is known as the heart of a home, so make sure to invest in practical features, like energy-efficient appliances, a granite countertop and durable materials.
Mid-range bathroom renovations are among the top things that add value to your home whereby the latest trends like wall-mounted lighting, under-mount sinks and marble countertops are some of the most desirable features. The average mid-range bathroom costs run somewhere between $10,000 and $15,000, including demolition of the old bathroom, plumbing and all other fixtures. If your aim is to sell the home, it’s extremely important to take into account the neighborhood you live in and what kind of updates are most appreciated. If you don’t live in a high-end neighborhood with luxurious homes, don’t go for the luxurious look, neither for the bathroom nor in general.
Shop for a contractor
Picking the right contractor is one of the most important decisions to make which means you shouldn’t go with the first one you find. Weigh your options and compare their quotes, and as tempted as you might be, don’t let the lowest estimate be your only criterion. Also, go into details with what you want have done and what kind of materials should be used to avoid having the contractor choose for you. Everything has to be spelled out in black and white.
As we all know, renovations usually take longer and cost more than we initially anticipate because of the unexpected repairs that very often arise. Make sure to plan for such contingencies in advance and have 10%-20% extra cash of the contracted amount.
Determine what you want before the works start
Sometimes homeowners regret some of their decisions during the process and ask for last-minute changes, like different kitchen cabinets than initially planned or another type of sanitary ware, etc. Bear in mind that every change of plans requires a change order which can result in spending more money and losing more time.
Renovations can be a nightmare for many people since it’s not fun having a noisy construction site in the middle of the home, but the end result is most often worth the trouble. If you are renovating your home to sell it, click here to see which things can devalue your home.