Home renovation costs and ways to save
March 9, 2023 5 min read
Thinking of renovating your home? Maybe you just bought a fixer-upper that needs a lot of love. Or you’re considering some minor upgrades to keep things fresh. Whether the project’s big or small, here are some basic considerations and costs to keep in mind.
- The cost of home renovations can depend on many factors, including the materials used and the size of the space.
- There are a number of ways you can consider paying for your home renovations, including cash, credit cards or loans.
- Doing your homework beforehand can help you keep costs low and avoid overspending.
How much does it cost to renovate a house?
There are lots of factors that could impact how much it costs to renovate a house, including:
- Type of project
- Materials used
- Condition of the home
- Age of the home
- Square footage of the space
- Where you live
As a general rule, what you spend depends on how much you change, the price of the materials you use and the size of the space. But you never know what issues might pop up unexpectedly once you get started—which could stretch your costs even more.
Here are some other factors that could affect the cost of a home renovation:
- Building permits: Depending on what you’re renovating, you might need a building permit. That can cost anywhere from $50 to $2,000 depending on the size of the project.
- Products and materials used: Do you plan to use high-end, midrange or low-end products in your renovation?
- Age and condition of the home: Regular care, upkeep and maintenance can keep a home from falling apart. Older homes might require more work—think electricals, appliances, worn materials and even things like termites.
Home renovation costs by room
Your costs can also depend on the room you’re renovating. Here’s a look at some examples:
Kitchen renovation costs
Kitchen upgrades play a pivotal role in adding home value and appeal to a home. According to online contractor search service HomeAdvisor, the average kitchen remodel costs $26,236 in 2023. Keep in mind that materials used and square footage can play a role in the total cost. And that a complete remodel might be more expensive than smaller renovations.
Bathroom renovation costs
As with kitchens, updated bathrooms can add a lot of appeal to the sale of a home. HomeAdvisor reports that homeowners are spending an average of $11,301 on their bathroom remodels in 2023.
Garage renovation costs
A garage renovation costs about $5,000 on average, according to HomeAdvisor. Even changing out a garage door can add significant home value when it comes time to sell, boosting your chances of selling at the price you want.
Roof renovation costs
The national average to replace a roof is $9,051, according to HomeAdvisor. Installation fees, materials, house size and location can all impact your total cost.
How to pay for home renovations
There are a few different ways to pay for home renovations. Here are some you can consider:
Cash or savings
If you have the cash available for home renovations, it can be one of the most cost-effective ways to pay. You might avoid paying interest and prolonging repayments.
Depending on the size of your project, you could consider paying with a credit card. And if you use a card with a low or 0% introductory APR and pay the balance in full before the introductory period ends, you could pay for the work without incurring any interest.
Home improvement loans
Home improvement loans typically take the form of unsecured personal loans or lines of credit. This means you don’t use your house as collateral to qualify. Because of this, your credit score and history could play a larger part in decisions about your eligibility and interest rate.
Home equity line of credit
A home equity line of credit, or HELOC, is a secured loan that uses your home as collateral. The amount you qualify to borrow is based on how much equity you have in your home and how much it’s worth. A HELOC is a revolving line of credit that lets you borrow money for home-related costs when you need it.
A cash-out refinance is also secured by the equity in your home. You can refinance your mortgage for more than you owe and then pocket—or cash out—the rest.
Ways to save on home renovations
With a little preparation, there might be some ways you can save on home renovation costs.
Stick to a budget
Creating and sticking to a budget can help you allocate your funds carefully and avoid spending more than necessary on home renovation costs.
Do it yourself
Not all projects need a contractor and heavy lifting. In some cases, you could consider doing the project—or part of the project—yourself. For example, in a kitchen renovation, you may want to replace the cabinets and hardware yourself and save the flooring installation for the professionals.
Don’t rush the process
There’s always a chance of running into an unexpected issue during renovations. But whatever happens, try not to rush the process. Making decisions in haste could mean you end up paying more—whether for more expensive materials or rush orders, for example.
Home renovations in a nutshell
If you’re thinking about renovating some parts of your home, it’s a good idea to do your homework. It could give you an idea of average costs, which you can weigh against your contractors’ quotes. If hiring professionals is more than you thought it would be, you might be able to do some of the work yourself or consider other ways to help pay.