Cost Of Remodeling Home

Before remodeling your house it is important to determine the value of your house. This will allow you to decide how much you should spend on remodeling your house. You will be able to estimate the percentage of renovation cost. This estimate will tell you whether remodeling is worthwhile or it is better to buy a new house. If the cost of remodeling is about 20-30% of you house value then it is acceptable. If the cost of remodeling is above 30% then it is better to buy a new house than remodel it.
 

Home value is estimated depending on the type of house, location of the house, sale price of houses in your locality and projected growth for the community. The best estimate of the value of your house is sale value of a similar house in your locality. Another method of calculating the value of your house is to have it valued by a professional. You may require the assistance of a professional appraiser, especially if you are applying for finance to renovate your house.

The remodeling cost of your house will depend primarily on the type of renovations that you are making. If you plan to make internal changes in the house it will not cost a lot. But if you plan to make structural changes it will be more expensive. Changes in the physical structure of the house will mean roof extension, exterior siding, insulation, wiring, plumbing and decorating the room. The cost of remodeling your house will include the cost of construction materials, cost of construction labor, permit fees, decorating the remodeled part, cost of repairs due to remodeling and cleaning up after remodeling. The contractors must quote costs for the above when they submit their bids.

Review all the bids carefully before selecting a contractor. It will be easier for the contractor to give an accurate figure when you give him a project specification plan. The contractor should include the following costs:

• Labor cost should include total hours required, payroll taxes and workers' compensation insurance.
• Construction equipment
• Safety equipment like hard hats, dust masks, gloves and goggles.
• Materials including wooden frames, plumbing fixtures, flooring, cabinets, paint, insulation, tile, heating and ventilation units.
• Repairs as required while tearing into the existing construction.
• Cleanup including rental bins, removal service and dumping fees.
• Light fixtures, window coverings etc.
• Fees of subcontractors like electrician, plumber etc.
• Including estimated costs of upgrades and changes.

The cost of all the above should not exceed 20-30% of your home value, for the remodeling project to be a worthwhile investment.

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