Older homes often have hidden problems, such as lead paint, asbestos, rotten wood or old-fashioned plaster, which require more labor and can make remodeling a whole house a daunting task. Contractors often end up gutting all walls, repairing foundations and structural damage, and replacing the subfloor. You may be wondering why a general contractor (GC) charges the prices they do to build or remodel that safe place you call home, where you and your children live. Investing in your home can increase its value and provide a higher return on investment (ROI) when reselling.
Most home renovation programs make you believe that gutting and remodeling your home is as simple as a 30-minute programming block. However, the cost of gutting your home and renovating it will vary depending on the size of the home, the cost of the finishes, and the scope of the remodel. Experts recommend setting a budget of 5 to 15 percent of the total value of your home to remodel a kitchen or basement and 1 to 7 percent when remodeling bathrooms, bedrooms, or living rooms. Remodeling the basement can be a very big job, depending on the condition of the area and the remodeling plan of the house.
The National Kitchen & Bath Association recommends spending 5 to 10 percent of your home's value on a bathroom remodel. Calculating the cost of renovating a home can be complex, but here are the main factors in determining how much it could cost you to renovate your home:
- Size of the Home
- Cost of Finishes
- Scope of Remodel
- Fireplace Remodeling
- Renovations for Sale vs. Personal Enjoyment
It's best to invest enough to meet your lifestyle requirements while keeping your home's value close to surrounding home values.