Inheriting Property in McHenry County (Part 2): Safeguarding the Physical Home, Vacant Insurance, and Estate CleanoutsWritten By: Melissa Kampschroer, Broker Realtor® | Certified Seniors
Make Your Renovation Costs Count
Dated: May 1 2024
Views: 71
How to Budget for a Home Renovation
Sticking to a budget is always a challenge. Creating a budget for a large project you’ve never done before is an even bigger challenge. When it comes to remodeling costs, building a reasonable home renovation budget requires a detailed plan and plenty of research.
Fortunately, we've done most of the leg work for you. Simply follow the steps below to create a remodeling budget that will keep you from overspending on your next renovation.
How Much Does It Cost to Remodel a House?
According to HomeAdvisor, the average home renovation cost is approximately $49,979. The amount you spend is largely determined by the size of your space. Renovations made to an older home tend to cost more than a newer one, especially if the wiring, plumbing and other features aren’t up to code. For this reason, you can expect to pay anywhere from $10 to $150 per square foot of your home.
When you’re deciding on your home renovation budget, it can be easier (and more affordable) to prioritize projects by room and build a budget around the cost of each individual project.
Room: | Renovation cost: |
|---|---|
Bathroom | $3,000-$25,000 |
Home office | $5,000+ |
Living room | $5,000-$10,000 |
Kitchen | $6,000+ |
Utility room | $6,000+ |
Master bedroom | $10,000-$15,000 |
How Do I Estimate My Home Renovation Costs?
To get an approximate idea of what your remodeling budget should be, consider the value of your home as a whole. You don’t want to spend more than 10 to 15 percent of your home’s value on a single room. If you spend more, the value of the renovation will not proportionally add to the value of your home.
For example, if your home is worth $100,000, the maximum you should spend on a kitchen or bathroom renovation is $15,000. If your home is worth more, the cost to remodel your house will probably be higher.
“Most of the time, it’s really hard for a homeowner to know where to start. I recommend bringing in a design build contractor early on in the process. In their initial consultation they can talk about your needs and priorities and help guide you through a project that is realistic for your budget.”
Danny Niemela | ArDan LLC
Figure Out Financing Before You Build a Remodeling Budget
Not sure how to budget for a home renovation? First, you’ll need to determine how you’re financing it. If you are paying in cash, taking out a loan or applying for credit, your remodeling budget must fit within the limit of your available funds.
Once you know how much you can afford to spend, set aside 10 to 20 percent of your available funds for unexpected expenses. This is important. It’s not uncommon for something to go wrong or cost more than originally projected. By setting aside a percentage before starting your remodel, you know you’ll have the funds available to finish your project no matter what happens.
“Managing money is determined by the decisions you make for your project. Ask yourself what is most important to you by prioritizing your needs before getting started. Getting family members on the same page will be critical prior to starting the project.”
Elizabeth Dodson | Co-Founder, HomeZada
Financing Options to Consider
Here are a few ways you can finance your home renovation, according to NerdWallet:
- Home equity loan or line of credit. A home equity loan or line of credit lets you borrow up to 85% of your home’s value, not including what you already owe. If you opt for the line of credit, you can borrow what you need, and only pay interest on what you take out. If you opt for a home equity loan, the bank will give you a lump sum which you’ll usually have to repay in 15 years or less.
- Cash-out refinance. This financing option replaces your current mortgage with a larger one. The balance on your previous mortgage is paid to you in cash, which you can use to fund your remodeling projects.
- Personal loans. This type of loan lets you complete your home remodel faster, as most lenders can fund it in just a few days, but its good to know that these loans usually carry much higher interest rates.
- Cash. Paying in cash is the most desirable way to finance your home renovation, as you’ll complete your remodeling project without accumulating interest.
“I recommend setting aside between 10 to 20 percent for a cushion. If you hire the right contractor to do some exploratory demolition or investigative work early on there should be very little unforeseen work that needs to happen. However, in our experience once a project starts many of our clients pull out the ‘While you are here, can you also do...’ list and if a client has the money set aside, we can easily accommodate it during the duration of the project.”
Danny Niemela | ArDan LLC
Tips for Cutting House Renovation Costs
While setting your remodeling budget, use these tips to save even more money on your home renovation:
- Complete demolition yourself: If you’re removing cabinets or pulling up tile as part of your renovation, consider doing the work yourself. As long as there is no expertise required, this is a good way to reduce labor costs and save a few dollars.
- ** Order fixtures and finishes yourself:** Your contractor will probably charge you an hourly fee to do your shopping for you and may even charge a markup. Be clear about your plans so your contractor knows you’re taking on that responsibility yourself.
- Be your own project manager: If you need to hire additional subcontractors for your project, interview and select them yourself instead of having your general contractor do it.
- Do your own painting: Having a room painted by a professional can cost $300 or more. Plan to complete any required painting yourself and you can remove that cost from your remodeling budget.
- Shop used: Instead of purchasing everything brand-new, pick up used or refurbished items when possible. This can greatly reduce your spend on appliances and finishes.
Once you’ve decided how much you’re going to spend, use the following steps to create a detailed plan and remodeling budget.
Steps for Making a Detailed Home Renovation Budget
1. Decide What’s Most Important to You in Your Remodel
The easiest way to stick to your remodeling budget is to know exactly what you want. Create a list of everything you’d like the project to include and separate these items into wants and needs.
“Think about the proper order to do things in. It makes no sense to get new kitchen counters if you know that later on you’ll likely need to upgrade your cabinets or change the floor plan, right? Doing things in the right order saves time and money in the long run.”
Christine White | The (mostly) Simple Life
Credits to By:Dana ShugrueBudgetDumpster.com
Melissa Kampschroer
Melissa Kampschroer is a Chairman's Circle Gold Award recipient and Team Lead of The MLM Group with Berkshire Hathaway HomeServices Starck Real Estate. With 19+ years of real estate experience and 285....
Latest Blog Posts
Written By: Melissa Kampschroer, Broker Realtor® | Certified Seniors Professional (CSP), SFR®, e-PRO​ Broker Realtor® AgentMel.comLegal Review & Co-Author: David J. Wolf,
Losing a loved one is incredibly difficult, and being named the executor or administrator of their estate comes with legal and emotional responsibilities. One of the biggest challenges families face
When it comes to major life transitions, the stakes are incredibly high. As the saying goes, life doesn't always give mulligans, and real estate decisions matter. Since 2006, I have committed my
Midwest Real Estate Data (MRED) All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of the Multiple Listing Service. Real estate listings held by brokerage firms other than Woodstock may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. Copyright ©2026 All rights reserved.Based on information submitted to the MLS GRID as of September 27, 2026 11:49 AM UTC All data is obtained from various sources and may not have been verified by broker or MLS GRID. Supplied Open House Information is subject to change without notice.
Data is updated as of September 27, 2026 11:49 AM UTC
All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating
