How Much Should You Spend on a Home Remodel?

How Much Should You Spend on a Home Remodel?

There is a saying often coined on home remodeling tv shows like HGTV’s Fixer Upper– “buy the cheapest house in the best neighborhood.” The reasoning for this is simple and proven time and time again. The cheapest house in a desirable neighborhood has the largest opportunity for growth or “expansion potential”. Simply put, the remodeling investment made in homes that fall into this category tend to see the greatest ROI and resell faster when the time comes!

Maximizing Your Home’s ROI

Even if you are not on the hunt for a fixer-upper, spending the right amount on a remodel can be the difference between a highly sought-after home when on the market, and a home that is overpriced for the neighborhood. You tend to see the best return on a medium remodel project that will in turn appeal to the widest range of potential buyers in the future. You might have heard hard and fast numbers like $10,000 remodel for a bathroom and $25,000 for the kitchen. However, these numbers are meaningless if the value of the home is not taken into consideration. To account for this, the best method is to consider your remodeling budget as a percentage of the cost of your home overall.

As an example, let’s imagine you are considering your kitchen. Should you remove the countertops, cabinets, and floors and completely remodel? Is anything salvageable? What should you spend? One website uses the following as a detailed example.

“Let’s say you bought the house for $1,000,000. It has three bedrooms, two bathrooms, 1,800 square feet of living space, and a 5,000 square foot lot. A property’s value is made up of land value and building value. In your case, the split is 50/50. If you include the kitchen, living room, and laundry room, the house has a total of eight rooms. The value of each room is therefore around $62,500 ($500,000 building value divided by 8 rooms). You can consider $62,500 as the max you would ever spend doing anything to a room.” (Financial Samurai)

While this is useful information, not all rooms are equally worthy of the investment. Generally, the kitchen is the first place people look to remodel, and this is because there are costly appliances, plumbing, and materials used within this space. Further, many home buyers regard a remodeled kitchen as the #1 must-have when on the market for a home. The master and guest bathroom in addition to the master bedroom are other rooms that rank highly on the list of home buyers when deciding which house they will purchase.

It is also worth mentioning that the kitchen and bathrooms do generally cost the most to remodel and other rooms like family rooms and bedrooms can appeal widely to buyers simply with a fresh coat of paint, updated flooring, and light fixtures!  Be sure to consider, as mentioned, the percentages involved in your remodel to ensure your remodeling projects best align with the value of your home.

How Rossi Construction Can Help

We have years of experience in construction, from crafting blueprints, sourcing quality materials to helping establish budgets to maximize the resell value of your home. Reach out to us today to learn more about what we can do for you and your home!

Tags: contracting projects, general contracting, Home Improvements, kitchen, kitchen remodel, kitchen remodeling, kitchen renovation, renovation, St. Petersburg Kitchen Remodel, St. Petersburg Kitchen Renovation, tampa, Tampa Construction, tampa general contractor, tampa kitchen, tampa kitchen remodel, Tampa Remodel, tampa remodeling

Online Reviews

Bob Meier
Bob Meier
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They were very professional. Quoted us a time frame and they were exact on the time frame. The were very clean as they cleaned up every night. Any questions I had they were very helpful. Overall a great experience. We plan on using them again if we decide to redo our bathrooms. The kitchen came out very nice and we are very happy with it.
Missy P.
Missy P.
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This company is great. They did an awesome job on our remodel. The quality of work surpasses everything. All project hiccups were professionally handled and solutions came out better than planned. Jason Rossi and his lead foreman on our job Brian Smith are very professional. Brian provided a wealth of knowledge in regards to our entire first floor remodel project. Brian Smith is trustworthy and the quality of his work is impeccable. Job well done JRossi Construction!!
Ed M.
Ed M.
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The work quality was outstanding, the crew friendly and a delight to work with, and they cleaned up after themselves and left the place in great shape! When I remodel my other unit, there is no doubt that Rossi Construction will be doing the work there also. I had an issue with the door quality of the cabinets and Rossi and his crew met with myself, and the Cabinet Representative immediately, and the issue was resolved to My Satisfaction. You can easily tell that Customer Satisfaction is what everyone in the organization is focused on. Great Job and thanks again, Ed.
Beth Lawson
Beth Lawson
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Rossi just remodeled our hall bathroom and kitchen. They are incredibly skilled craftsmen who use the best products. We had two different men lead each project and they were both wonderfully skilled (cabinetry, tile, hardware installation, electric, plumbing, painting, etc.). They are honest, hardworking, on schedule, clean up after themselves, and fix problems. We highly recommend them.
Jeff S.
Jeff S.
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Rossi Construction just finished renovating our veterinary hospital. The entire process from start to finish was flawless. Jason was the only contractor who looked at our space and was able to get a rough quote to us within 24 hours. Everything ran on schedule and within budget, and the final product was beautiful. Our project supervisor was incredibly knowledgeable and easy to work with. I highly recommend this company to anyone looking for construction work in the Tampa area.
Scott N.
Scott N.@username
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The guys from Rossi do great work. We did a complete remodel of two levels of our house (we have a split level). The work included a full redesign of the master suite (took space from the bedroom to make a bigger bathroom and add a walk-in closet, also changed configuration of some windows), full redesign of main level (kitchen, living, and dining space) that included floating a sunken floor and removing walls to open the space, and cosmetic updates to the rest of the bedrooms (new doors, trim, paint, etc.). Only small issues were due to subcontractors, and Rossi made sure everything was brought up to expectation. We're super happy with the result and would not hesitate to use them on future projects.
Adrien Tenor
Adrien Tenor
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I would highly recommend Rossi construction. Jason and his employees were very professional, very conscientious, and definitely went the extra mile to make sure I was happy with the project. If I emailed questions, they were promptly answered. I believe the pricing on the project was very fair. I am recommending them to all my friends. It was a great experience working with this contractor. I would hire them again in a heartbeat.
Jen H.
Jen H.
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Rossi Construction just finished renovating our veterinary hospital. The entire process from start to finish was flawless. Jason was the only contractor who looked at our space and was able to get a rough quote to us within 24 hours. Everything ran on schedule and within budget, and the final product was beautiful. Our project supervisor was incredibly knowledgeable and easy to work with. I highly recommend this company to anyone looking for construction work in the Tampa area.
William D.
William D.@username
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Overall, the remodel went quite well. The workmanship is very good.The crew was very punctual and professional. I found some minor issues that I pointed out to them, and they resolved them to our satisfaction. They could have done a better job with drop cloths in the hallways. There was a fair amount of joint compound that got tracked around on the carpet, and some of the dirt & debris got ground into the carpet. However, I consider this to be a minor issue, and would definitely consider using them again.
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