Costs of Renovating a House: How to Budget for Your Dream Home

Whether you want to maximize storage space or add character and personality to your home, consider renovating it. A home renovation can increase home value and improve your home’s aesthetic appeal, setting it apart from other properties in the neighborhood.

How Much Does it Cost to Remodel a Home?

It costs between $20,000 and $50,000 or more to renovate a home in Canada. How much it actually costs to renovate a home depends on a number of factors including project scope, materials used, and labor costs. Minor Aurora home renovations can cost $5,000-$30,000, while a major Aurora whole home renovation can easily cost between $50,000 and $200k or more.

Factors That Affect The Cost of Renovating a Home

When creating a home renovation budget, consider these factors that can affect the cost of a remodel.

• Labor costs- Vary depending on the location. Wage rates in urban areas are usually higher than rural areas
• Materials- If you want to use high quality materials, it will cost more to renovate your home
• The expertise and skill levels of the contractor- Experienced contractors with specialized skills typically charge more for their services
• Project scope- An Aurora whole home renovation will cost more than a renovation that focuses on cosmetic changes
• Permits and inspections- If your home renovation requires a permit or you plan to hire an inspector to detect issues and check work quality before and after renovation, costs can increase
• Unexpected issues- In case your renovation contractor discovers a mold or structural problem during renovation, they may have to carry out repairs. Unexpected repairs can lead to increased costs

Some home renovation costs to consider include

• Design and planning fees- Can vary between 4% and 20% of the total project cost
• Materials- The cost of building materials primarily depends on their quality and whether they are sourced locally
• Plumbing and electrical work- If you plan to upgrade plumbing or are considering electrical upgrades, expect to spend between $2,000 and $35,000
• Finishing touches- Considering high-end finishes? The overall cost can increase by 1%-3%.

Creating a Home Renovation Budget

Before you start a home renovation project, define your renovation goals. Do you want to improve the functionality of certain areas or boost the aesthetic appeal of the entire property? Seek answers to important questions to better understand your renovation goals. Familiarize yourself with different costs involved.

Follow the below tips to create a home renovation budget that works for you.

Create a Detailed Plan

Break down your renovation project into different tasks such as demolition, plumbing installation, and painting. Estimate the amount of time and money required to get each task done. Learn to distinguish between must-haves and nice-to-haves and consider sacrificing some nice-to-haves to cut costs.

Account for Unexpected Expenses

Set aside around 10-20 percent of the total renovation budget to meet unexpected expenses. Without a contingency fund, surprises can catch you off-guard, causing financial stress.

Find Alternative Accommodation and Calculate Living Expenses

If you’re planning a whole house renovation, consider temporarily moving into a rental property. Calculate rental cost and other costs associated with relocating.

Get Multiple Quotes

Get at least three renovation estimates and compare them. When analyzing an estimate, study every cost element. If you have any doubts or do not understand a cost element in an estimate, do not hesitate to call up the contractor. While cost is an important factor to consider, steer clear of renovation contractors with unrealistically low quotes.

Explore Different Financing Options

Decide what percentage of your savings you want to use to finance your renovation project. Consider using a home equity or personal loan to meet renovation costs.

Track Expenses

Using a spreadsheet or budgeting app, track expenses as your renovation project progresses. Periodically compare actual costs to estimated costs and adjust your home renovation budget as needed.

Altima Kitchens and Closets Inc is a leading renovation contractor in Aurora. We are equipped to manage challenging renovation projects. To make an appointment with a remodeling expert, call (416) 845-7265.