What is Remodeling Costs?
Remodeling cost is the amount of money you spend to implement any kind of remodeling in your house. It will be good if you get estimate of addition and home remodeling cost before starting any remodeling project. It is also necessary that you know the value of your property. This will help you to estimate percentage return of total renovation cost. Remodeling costs and percent return of total renovation cost will help you with deciding the worth of remodeling of your house.
Important Component of Remodeling Costs
Remodeling costs of any remodeling project include cost of following things:
- Construction Material Cost
- Construction Labor Cost
- Permit Fees
- Decoration of Remodeled Area
- Repair Cost due to Remodeling
- Cleaning up cost of area after remodeling
Percentage Limits of Remodeling Costs
Most important thing that you must consider before starting any kind of remodeling is the percentage value of remodeling cost covers total value of your house. If remodeling cost ranges from 20% to 30% of total value of your house it is satisfactory. This will suggest starting remodeling. On the other hand if remodeling cost is more than 30% of total value of your house remodeling will not be a good decision. In such case it is better to buy a new house.
Factors Affecting Value of Home
Total worth or market value of your home depends on several things such as type of house, location, overall property values in your locality and expected development of community. Most easy way to know about sale value of your house is to observe selling price of similar hoses in your area. You can also ask professionals to estimate value of your property in any specific area. Professional evaluator is required when one is applying to finance his/her remodeling or renovation project.
Factors Affecting Remodeling Costs
Remodeling cost mainly depends on the type of renovation you are planning. For instance internal renovation projects such as repainting and redecorating interior of your house will not need big investment. Redecorating project includes changing furniture, color scheme, adding appliances and other small additions such as cabinets, lights and fabric in existing design of your house. But if you are going to make any structural changes in your house remodeling cost will be higher. Structural changes include extensions in roof, exterior sidings, insulation, wiring and plumbing.
Calculating Remodeling Costs
Although calculating remodeling cost is not an easy task. But you can calculate approximate cost to take a rough idea. Per square foot is a popular method of calculating remodeling cost. The formula for calculating remodeling cost is:
Square footage of the area to be remodeled X Cost per square foot
This method of calculation enables you to estimate the cost in a quick manner. The draw back of this method is that per square remodeling cost estimated through this method varies from $100 to $700 dollars. This variation can completely change the total remodeling cost of your project. It is also important to note that what kind of remodeling you are going to implement. If you are considering economical remodeling for your home it can cost $100-$200 per square foot, while if you are planning custom remodeling or special remodeling it can cost $600-$700 per square foot. Remodeling costs varies from area to area. Due to this you must do proper research in your area about economical and custom remodeling options before making an estimate.
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