Monday, January 4, 2021 / by Vanessa Saunders
By Vanessa Saunders, MBA, MIMC , Broker Owner, Global Property Systems Real Estate.
The new year is often time to look ahead and plan for improving parts of your home. If remodeling is on your wish list, you're not alone. According to Home Advisor, a digital marketplace that connects homeowners with prescreened, local service professionals, 41 percent of homeowners said that making their home better suited for lifestyle needs is a top priority as social distancing continues.
Whether it's a new kitchen, turning a bedroom into an office or creating an outdoor oasis, getting your plans in order in January is a great time to start projects scheduled during the new year. And first of all is deciding how much you want (or need) to spend.
But the problem with budgeting home improvement projects is that unlike budgeting to buy a car or a new cellphone, home renovations come with the possibility of unforeseen issues that must be fixed before proceeding with a project. Rule of thumb from several Hudson Valley home improvement experts is to create a budget based on the worst case scenario. "Once you start tearing out dry-wall or messing with rusty plumbing, you never know what can of worms you may find, especially in older homes," said Vince Dahl of Dahl Brothers Renovations. "You may encounter situations where you need to buy additional materials, or find that a countertop you’ve ordered is out of stock or that old wiring is in need of updating. "
Dahl says that homeowners should create an initial budget, then triple it to make sure they’re well-equipped for any surprises that may arise. “Make sure you have the financial means to handle anything that could reasonably happen, because budgets can blow out of proportion very quickly.”
What to know about kitchen makeovers
The most popular renovation projects are kitchens. Home owners should figure that about 25 percent of the budget will go toward labor, while cabinetry and hardware ($6,000 or more), appliances ($3,200 or more) and countertops ($2,300 or more) are often the most expensive part of the build.
Re-doing the bath
Bathrooms are second on the list for a remodel. Depending on size, a new loo can cost an average of $10,718. A small bathroom can be modernized for as little as $3,500, ot more than $25,000 for a large ensuite bathroom.
Office space conversions
Home offices are increasingly popular as more and more home owners work from home and need an appropriate space. Depending on how extensive and technologically advanced you want your office to be, turning a spare room or bedroom into a new office can cost between $5,000 and as much as $22,000. Softening the blow is the fact that home offices used as part of a business or required for work are at least partially tax deductible as a business expense. Check with your accountant or financial advisor for compliance regulations for your particular situation.
Options include the addition of built-in desks, custom bookshelves and cabinets ($1,200 to $3,900), hardware and connectivity ($100 to $3,000) and soundproofing ($1,000 to $2,400).
Taking in the outdoors.
Outdoor renovations are the hardest to budget for because of the variety of improvements available. A high-end project might include a cabana and an in-ground pool or a full outdoor kitchen. Less ambitious projects include multi-level decks, porches or sunrooms. Including landscaping, a full backyard renovation can easily reach six figures.
The Bottom Line.
Whatever your renovation project, be sure to budget for the unexpected, and don’t skimp on the components. As with most things in life, you get what you pay for, and in the end, it’s the cheap-skate who eventually pays the most.