How Much Should You Be Spending On Your Remodeling Project?
As most of you know, Paquin Design Build specializes in building high- end custom homes. We also have our hand in a lot of major home renovation projects which is one of the reasons we built our own interior design showroom which we are calling Paquin Interiors. The showroom has created a tool for our clients, area contractors, designers, and homeowners to use as part of their remodeling and renovation selection process. With kitchen and bath displays, faucets and sinks, lighting and floor samples at your fingertips, it's easy to make all of your selections from one convenient showroom.
Paquin Interiors is offering product for the entire home but our focus is on kitchen and bath design, as these two rooms have always been high on the list of upgrades in older homes in our area. One of the leading questions we hear from many of our clients is "how much should a homeowner invest in an older home"?
The truth is that there isn't one good answer to that question. It depends a lot on the condition of the market in your community, the age and condition of your home, how much you purchased your home for, and what the renovation project is.
If you’ve purchased the lowest priced home in your neighborhood you will obviously have a little more room to expand and upgrade than those who have purchased homes on the upper end. And, all of this will have more of a significance if you’re planning to move within the next few years as opposed to staying for the long haul.
A spokesman for The appraisal Institute, a trade association, has indicated that there's a rough rule of thumb and guide for those considering any home renovation project. He suggests that you should not spend any more on each room of your home than that value of that room in the overall house value. You can get a rough idea of what the value of your home is by visiting a site such as Zillow.com.
A breakdown of the value given to each room of the home:
Kitchen
10% - 15% of House Value
Renovation Budget:
$300,000 home – invest $30,000 to $45,000
$500,000 home – invest $50,000 to $75,000
$750,000 home – invest $75,000 to $112,500
Master Bathroom
10% of of House Value
Renovation Budget:
$300,000 home – invest $30,000
$500,000 home – invest $50,000
$750,000 home – invest $75,000
Powder Bathroom
5% of House Value
Renovation Budget:
$300,000 home – invest $15,000
$500,000 home – invest $25,000
$750,000 home – invest $37,500
Other Rooms - Living Room, Dining Room, Bedroom
1-3% of House Value
Renovation Budget:
$300,000 home – invest $3,000 - $9,000
$500,000 home – invest $5,000 - $15,000
$750,000 home – invest $7,000 - $22,500
We suggest that you use the guide above as a place to start. We would also like to note that in the many years of working with homeowners, in all types of renovation projects, we’ve found that you can’t always put a dollar sign on happiness. If changing your current living conditions will create an easier way of life for you and your family and you’re financially sound, you can always consider the changes you will be making as an investment in your health and well-being. Creating a space that is comfortable and one that you want to return home to everyday can mean more than a few dollars in your pocket at the closing table.
Paquin Design Build is a custom home builder on the Eastern Shore. Beyond building custom homes, we specialize in home remodeling and renovations. Our homebuilding service area extends from Anne Arundel County and Annapolis to Kent Island and Grasonville, and as far as Easton and St. Michaels. We are opening an interior showroom, specializing in kitchen and bath design in mid-February located adjacent to Rt. 50 in Grasonville. The showroom showcases cabinets and countertops, sinks, faucets, tubs and tile, showers, lighting, and floors. Visit our showroom for all of your home remodeling and renovation projects under one roof.
