With the real estate market heating up, it seems many American homeowners are ready to start remodeling again. The Joint Center for Housing Studies at Harvard University predicts home improvements spending will double this 2013. That said, we recommend to make a budget and look for ways to reduce cost in order to not spend more than you can recoup when it's time to sell.
To figure out what's safe to spend, you need to determine how much your home value is represented by the room you are planning to remodel. John Bredemeyer, a spokesperson for the Appraisal Institute, says that the kitchen usually account for 10% to 15% of property value; bathrooms, 5% to 10%; half baths, 5%, and a finished basement or attic, 10% to 15%. To calculate your cap, multiply that percentage by the property value. So if you are planning to do a major kitchen renovation on your $400,00 home, you wouldn't want to spend more than $60,000
We recommend to be conservative with the numbers and always budget to spend less than the calculation if that's more than you can afford. So if you have been planning to renovate your home and are wondering what is the appropriate quantity you should spend, give us call!Â
Our years of experience can guide you to the right decisions! For a free estimate of your home and renovation budget callÂ 619-665-5360Â or emailÂ Jason@MetroSDRealty.com