Home Indeed Blog

Home remodeling blog from Home Indeed in the Cedar Valley, IA. Home design, renovation inspiration, and more!

Creating a Home Renovation Budget in Northern Iowa

One of the most challenging aspects of a home remodel project is creating and sticking to a budget. To do so, you must determine what you want to accomplish and how much to spend—both of which are easier said than done.

One of the first steps to developing a realistic home renovation budget is identifying and then prioritizing your wants and needs in conjunction with your goal for the project. For example, you may want a walk-in shower with a waterfall showerhead, heated floor, and luxury tile walls, but is that a top priority if your current bathroom vanity is in disrepair?

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As you’re evaluating the space you currently have, make a list of the elements or features that are a constant source of frustration or inconvenience. On the flip side, what parts of your home, kitchen, or bathroom are you fine to live with for the next few years?

Another step in budgeting your remodel in the Cedar Falls, Iowa, area is assessing what you can pay, as well as what you should pay, for the project. Knowing ahead of time what it costs to remodel various parts of your home can help you set realistic expectations and prevent unintentional scope creep from increasing your final price tag.

How Much Does it Cost to Remodel a Kitchen

How Much Does a Remodel Cost?

The primary costs associated with any home remodel are labor costs and material costs. You may also have to pay architectural or drafting fees to design the plans for the project, although design-build home remodelers include the design phase when calculating your overall price for the renovation. Other costs include permitting, inspection, and other miscellaneous fees.

The cost for labor tends to be about the same across a specific region, which means the greatest influence on the cost of your project is the style and quality of materials you select. For nearly every appliance, feature, and finish, you can choose between economy grade, mid-grade, and luxury products, giving you more control over your budget.

How Much Does a Kitchen Remodel Cost?

Depending on the scope of your project and the materials you choose, your kitchen remodel in Northern Iowa will likely cost in the range of $23,000 for a small kitchen remodel to more than $100,000 for a major kitchen remodel brimming with high-end materials and cutting-edge technology. Some of the main elements of a kitchen remodel include replacing flooring, cabinets, and countertops; replacing outdated appliances; repainting or adding a different wall treatment and trim; and putting in new light fixtures. If you’re significantly changing the layout of your kitchen, expect to pay extra for potential HVAC, plumbing, and electrical work.

How Much Does a Bathroom Remodel Cost?

The cost of a bathroom remodel can also vary depending on the type of space in need of work. Remodeling a powder room or half-bathroom can range between $3,000 and $15,000, whereas a midrange remodel for a hall bathroom is closer to $20,000 and a master bathroom remodel costs anywhere from the average $18,000 to $50,000 or more. Meanwhile, physically expanding the space adds significantly to remodeling costs for baths because it often entails rewiring electrical lines, adjusting the plumbing, moving walls, and completing other architectural and engineering tasks.

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How Much Can You Afford to Remodel?

A common question you may be asking yourself is, “how much can I afford to remodel?” The answer to this question varies based on your unique circumstances, lifestyle choices, and personal values. In general, though, evaluating the estimated return on investment (ROI) for a particular home renovation is a good place to start when determining how much you can and should pay for the project. Keep in mind ROI only takes into consideration the numbers associated with your home remodel, not the intangible benefits you enjoy from creating a space that is more functional, comfortable, and attractive.

ROI of a Kitchen Remodel

Your kitchen remodeling ROI can vary based on when you sell your home and the real estate market at the time. On average, however, the ROI for a minor kitchen remodel with midrange materials and finishes is about 74% in Northern Iowa, according to Remodeling’s 2020 Cost vs. Value Report. A major midrange kitchen remodel has a ROI of about 53% and an upscale kitchen remodel is slightly below 50%.

ROI of a Bathroom Remodel

As with kitchen remodels, identifying the average ROI for different types of bathroom remodels can help you figure out how much you can afford for your project in Cedar Falls, Iowa. For example, a basic bath remodel has an average ROI of about 53% in Iowa. A midrange bath remodel is closer to 52.5% and the bathroom remodeling ROI for an upscale project is about 46%. The approximate ROI for both midrange and upscale bathroom additions is about 50%.

How to Pay for Home Improvements

Another component of determining how much you can afford for your home remodel is identifying how you will pay for the project. There are several ways to pay for a remodel depending on your financial situation and the value of your home. Here are a few options available to you when it comes to financing your home renovation:

1. Out-of-pocket

Not surprisingly, paying cash for most or all of your project is one of the best ways to cover costs. You don’t incur any debt or interest charges, which increases the long-term financial value provided by your home remodel.

2. Loans

Many homeowners also opt to take out a loan to help pay for their home improvement project. You can apply for personal loans through a credit union, bank or online lender. Since personal loans are unsecured loans, your qualification for approval and interest rate are dependent on your credit score. You also don’t have to put your house up as collateral. Another option is to take out a home equity loan, which is commonly referred to as a second mortgage. You receive the money in a lump sum that you repay over a determined period of time with interest. The federal government also offers a few loans based on different qualifications and through various programs, such as the HUD Title 1 Property Improvement Loan.

3. Credit

Another one of the popular ways to pay for a home remodel is with a home equity line of credit (HELOC), which is actually more of a secured loan that is backed by the value of your home. You have access to a revolving line of credit that enables you to only use what you need when you need it, which is especially useful for an ongoing or lengthy remodeling project. Other homeowners in Northern Iowa may choose to use a basic credit card for their project. If your credit program comes with great rewards or incentives and you can pay the money back quickly, this option may be worth considering.

Budgeting with Your Cedar Falls Home Remodeler

It’s helpful to do research and develop a basic budget for your home improvement project, but you won’t know the exact cost of your renovation until you’ve finalized the design and made selections with your home remodeler. One benefit of choosing a design-build remodeling firm, like Home Indeed, is that you are working with the same team from start to finish. This enables your contractor to provide industry knowledge and insight on material costs and ways to value engineer the project before construction begins, helping you complete your project on budget.

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