Most homeowners do not know how much money they should set aside for a home renovation project. As a leading home renovation contractor, we have the experience and expertise to assist you. Our team has put together this guide to help you determine the average cost per project. Although the actual price may vary depending on the choice of materials, your location, permit requirements, and other factors, you can use the information to make an estimate.
Before we discuss the cost, it helps to understand some reasons why you may want to renovate your house and a few essential aspects to consider. This way, you know how to prepare and what you can expect.
Why Should You Renovate Your Home?
Remodelling to Improve Your Comfort
If you plan to stay in the house after renovations, it helps to focus on your high-use spaces. Aim for maximizing functionality and improving the aesthetics of your home by identifying the purpose of each change you want to make. This will help you decide the course of action for the project and finalize the details, such as choosing the right home renovation contractor, estimating the cost, the materials required, and more.
Renovating the House for Resale
If you have plans to sell the house soon, consider renovations with a higher return on investment. Think of potential buyers and choose things that will appeal to them. Selecting the modifications according to current home trends can also be a good idea. No matter what you choose, be sure not to spend more than the potential increase in home value. Also, do not hesitate to spend where needed to get the desired results. Striking a balance by determining which changes will get you higher returns in the future is crucial for coming out ahead.
Other Reasons to Renovate Your Home
You may remodel your home for the financial benefits it can provide. Renovations are less expensive than buying a new property, which involves legal fees, land transfer taxes, realtor fees, miscellaneous moving costs, and more. You can also revamp your home to find a more optimal use of the space.
Where to Start Renovating Your Home
It is best to focus on the renovations that add the most value to your property and make it more functional. Most home renovation contractors will agree that the remodels that generate the highest return on investment are bathrooms, kitchens, and basements. All of these are a great place to start, depending on your needs and the reason for remodelling.
Factors Influencing the Cost of Home Renovation
- Age – Renovating an old property may unearth things like lead pipes, knob-and-tube wiring, asbestos, and more, which may increase the expenses as they will need to be replaced.
- Size – If your house is spacious, the cost involved in remodelling will be higher.
- Labour Quality – If you’re hiring a reputable home renovation contractor with insurance, credentials, and experience, you may have to invest more. However, the result will be worth the money.
- Complexity – Removing walls, rearranging electrical or plumbing systems, or adding an extension requires more investment.
- Timeframe – If you plan to sell your property soon, you may consider less expensive improvements such as painting to freshen up your house.
- Fixtures and Finishes – Depending on the quality of the finishes and features such as the bathtub, flooring, and more, the overall remodelling cost may increase.
How Much Should You Budget?
There’s no specific number when it comes to budgeting for home renovation. This is because home sizes vary, and the amount of work is different. It is advisable to set aside 15% – 20% of your budget to manage unexpected costs. A general rule is to budget 1% to 2% of your home’s value each year for ongoing maintenance and improvements. In addition to this, consider building permits, architect or designer fees, expenses for temporary relocation if needed, and more.
Here’s a breakdown of what it generally costs for common home improvements, along with an average return on investment:
Cost of Home Renovations
|Type of Home Renovation||Description||Cost
|Kitchen Renovation||It is the best way to improve the functionality of your home and make it more enjoyable.||$ 33,000|
|Bathroom Remodelling||Having a modern bathroom with high-quality features will ensure it remains functional for years to come.||$ 20,400|
|Basement Renovation||It is a wise and economical way to enhance the usable space of your house.||$ 40,000|
Return on Investment for Home Renovations
|Type of Home Renovation||Return on Investment||Net Cost
(Based on the Estimates)
|Kitchen Renovation||According to home renovation contractors, this offers one of the highest returns, around 75%-100%.||ROI (85%) = $ 28,050
Net Cost = $ 4,950
|Bathroom Remodelling||Based on the trends, renovation experts believe that remodelling your bathroom will offer about 75%-100% returns.||ROI (85%) = $ 17,340
Net Cost = $ 3,060
|Basement Renovation||Renovating the basement to make it more functional will help you gain around 50%-75% returns.In some cases, 100%+ can be achieved depending on the nature of the improvement.||ROI (65%) = $ 26,000
Net Cost = $ 14,000
4 Essentials of Home Renovation
Estimating Home Remodelling Costs
Avoid spending more than the value of each room as a percentage of your overall house worth. Consider the approximate value of your house and think of ways to reduce unnecessary expenses. It is best to focus on your needs instead of your wants when remodelling your property by considering durability and functionality.
Get Renovation Quotes from Multiple Contractors
If you plan to hire a home renovation contractor, be sure to decide what you want to do and get multiple quotes. Discuss the details to get a complete estimate.
Stick to a Single Home Remodelling Plan
Do not make last-minute changes and avoid deviating from the original plan to incorporate trends. This is because modifying your original renovation plan often changes the order of activities, which may impact the estimated cost.
Think of the Hidden Renovation Costs
Although your home may look perfect on the outside, there could be some issues underneath the surface. Fixing such flaws tends to raise renovation costs, which is why it helps to factor in 15% – 20% percent of your total budget for unexpected expenses.
Contact Us for Home Renovations in Toronto
renoWOW! is a leading home renovation contractor with over 29 years of experience in the industry. We have the expertise and resources to help you achieve the results you want. Our experts will work with you to discuss your needs and goals and recommend suitable remodelling measures and ideas to get better returns. We will help you evaluate the cost of your project and complete it on time and within your budget.
For more information about our home renovation services in Toronto, be sure to give us a call at 416-937-0969.