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Budgeting For Home Remodeling In 2021

From budget and finance to dealing with any unforeseen issues, here are some of the key things to know about home renovations and maintenance as noted in Inman news 12/31/2020.

2020 was the year of renovations for many homeowners. There were many transformations including kitchen updates, converting a bedroom to an office, and updating indoor and outdoor entertaining spaces.

When creating a budget, base it off of a worst case scenario (where you may need extra materials, your choice of materials may be out of stock or delayed, or an additional contractor may be required to repair any unforeseen issues that came up during the renovation).

Create an initial budget, but be prepared to potentially set aside 3 times that amount just in case for those unexpected issues that may arise.

Kitchens are the most popular renovation project with the average cost right around $25,424. The price can vary depending on the size of the project, but can range from $4,000 – $60,000. A quarter of the budget would cover labor, with cabinetry & fixtures ranging about $6,000 or more,  appliances $3,200 or more, and countertops $2,300 or more.

Bathrooms are the 2nd most popular remodel with a price tag averaging around $10,718. For a smaller bathroom the price could be as low as $3,500, but a larger grand master suite bath could be as high as $25,000 or more. Half of the budget would go to labor, $300 – $3,800 for a vanity, $300 – $3,000 for a shower/bath, $200 – $1,800 for fixtures, $200 – $1,350 for flooring.

Home offices were another popular remodel during 2020, while offering a possible tax benefit (see your personal accountant on how to calculate any tax benefit there may be for you). The cost range for this was $5,000 – $22,000, and was based on whether there was need to build an addition, or renovate an existing room. Desks, cabinets, and built-ins ran $1,200 – $3,900, connectivity & hardware $100 -$3,000, and soundproofing $1,000 – $2,4000.

Backyard entertaining also saw an uptick. This included: pools, pool houses, decks, porches, sunrooms, and outdoor kitchens. For a full backyard entertainment oasis having a majority of those features, home owners were looking at a price tag starting in the 6 figures.

When homeowners properly budget for a renovation, consider the cost of materials and labor, while also adding on for any unforeseen maintenances issue that may come up during any home renovation project.