How To Determine The Right Amount To Spend on a Home Renovation
When budgeting a home renovation project, it’s always difficult to figure out how much is the right amount to spend. If you’re planning to leave your home in 10 years or less, it pays to limit your spending to what you would reasonably expect to get back in a resale of your home.
Here’s an approximation of how much you should budget for a renovation project:
Kitchen: 10% to 15% of house’s value ($30,000 – $45,000 on a $300,000 home)
Master Bathroom: up to 10% of a house’s value (up to $30,000 on a $300,000 home)
Powder Room: up to 5% of a house’s value (up to $15,000 on a $300,000 home)
Finished Basement: up to 15% of a house’s value (up to $45,000 on a $300,000 home)
Other Rooms: 1% to 3% of a house’s value ($3,000 – $9,000 on a $300,000 home)
Patio, Deck, Plantings – 2% to 5% of a house’s value ($6,000 – $15,000 on a $300,000 home)
With this type of guideline, you’ll be more likely to get your renovation back in a resale.