Here’s what homeowners can expect to pay in renovation costs for an average-size house (about 2,500 square feet):
- Kitchen: The national average cost of a kitchen remodel is $20,474. If a kitchen needs only minor upgrades, renovations should start at around $10,000. A full-on remodel can exceed $50,000, depending on the quality of materials and appliances installed, says Merrill.
- Bathroom: A bathroom remodel typically costs about $9,000 and tops out at $20,000. (Of course, you could spend more by adding such luxe touches as a steam shower.)
- New roof: The cost of protecting all of your upgrades from the elements will run about $20,000.
- New floors: You might want to top off your renovation by taking up that old carpet. Installing new wood floors will cost about $4,400, while laminate, which is less expensive, will set you back about $2,800. Of course, exact cost will depend on how many square feet you have in the kitchen.
- Electrical updates: If you’re replacing an old panel (and a home’s worth of outdated wiring) as a part of your remodel, expect to spend $3,000 to $5,000.
- Replacement siding: Any great remodel includes an exterior upgrade. Putting new exterior siding on your home runs an average of $14,000.
- Replacement windows: If you plan to replace 10 windows and frames to save on your energy bill (you might need the savings after this renovation), the cost will range between $8,500 (vinyl) and $20,000 (wood).
- The contractor: Unless you plan to oversee the renovation yourself, a budget should include the cost of a general contractor. This pro usually charges 10% to 15% of the project’s total budget. So for a $50,000 renovation, expect to pay a contractor $5,000 to $7,500.
One easy way for homeowners to save money on home renovations is to negotiate to pay actual builder costs on finish materials, says Jesse Fowler, president of Tellus Build, a green custom-build firm in Los Angeles and Santa Barbara counties.
The contractor you choose should be getting a discount on retail prices, and Fowler says that this can benefit you, too, in that you can “capture some or all of those savings.”
Return on investment (ROI)
Ah, the magic words that make a homeowner’s pain of parting with thousands of dollars more palatable, as those big checks you write for home renovation costs today may pay dividends if you ever sell your home.
A typical kitchen remodel typically yields an 83.1% return on investment. That means for every $1,000 you spend on those cabinets and countertops, you’ll get back $831.
Meanwhile, a bathroom renovation boasts an ROI of 65.7%, and if you go for those pricey wood-framed windows during your remodel, you’ll enjoy a high ROI of 72.1%. Check here for the renovations that offer the best return on investment.