What’s Your Home Worth To You?
Brown Residence, Week 7
As we begin to work on the schematics and design development phase of the Brown’s home renovation project, we also need to have a relatively firm grasp on the direction the remodel is heading and start to determine the cost of achieving their wish and needs list.
How much should your home renovation cost?
When trying to figure out a realistic number of how much you should spend on your home renovation without over-valuing your property, generally 25-30% of the current market value of your home is an acceptable amount to invest. For example: if your house is appraised at $400,000 then it’s not outrageous to invest another $120,000 in home improvements.
To be realistic, set a contingency plan and pad your budget by at least 25%! No matter how perfect your planning may be – when it comes to home renovation projects, always expect the unexpected. Material costs could increase, you could find hidden secrets hiding between the walls, or you may simply decide to make some changes during construction.
Finally spend your money wisely and don’t over design or over build for your neighborhood. The type of home improvements you design for you and your family may not necessarily be what others want in theirs. So if you’re planning on staying only a few years plan accordingly. To compare national and regional averages for the most popular home renovation projects, visit Remodeling Magazine’s 2009 – 2010 Cost vs. Value Report at www.costvsvalue.com.
I encourage you leave questions or comments below this post, and fill out the form on the right hand side of this page to receive your free copy of my special report: “How to Avoid the 15 Most Common Decorating Mistakes”
Article by Lori Gilder, Architectural Interior Designer, Los Angeles, Ca.
© 2009 Lori Gilder. Interior Makeovers Inc