A little planning can make a home renovation feel a lot less intimidating
When creating a renovation budget, add 10% to 20% for unexpected expenses.
A DIY approach can save you money now but may lead to costly repairs in the future.
As of 2024, the average cost to renovate a home is $52,000.
Whether you’re a new homeowner who wants to customize your space or you've owned a home for decades and are ready to update, renovating a home is exciting. However, the process can also be intimidating. Let’s look at how to renovate a house so you know what to expect before starting this big project.
Kicking off a home renovation can feel quite daunting, but one way to make the process more manageable is to get a clear understanding of the project's scope. Consider which areas of the house need the most work and determine your renovation goals. Are you focused on modernizing outdated features or adding more functional space? Be clear about what you hope to achieve to make planning easier.
For instance, perhaps you want to focus on cosmetic projects, like updating flooring, cabinetry, or wall finishes. A thorough assessment will guide your decisions moving forward and prevent scope creep (which can cost you a pretty penny and a whole lot of stress).
Now is a good time to create a home renovation checklist and figure out how long your home renovation will take.
Many spending temptations can pop up during a home renovation, and you’re bound to run into a problem that only money can solve. This is why setting a realistic budget is critical. Research the costs for each aspect of your project, including labor, materials, and any hidden expenses like permits or unforeseen repairs. Break your budget down by category (e.g., kitchen, bathroom, windows) to ensure you account for every area in your home.
It's also a good idea to set aside a contingency fund—about 10% to 20% of your total budget—for unexpected renovation costs. For example, opening a wall may reveal issues like mold or faulty wiring that need immediate attention. A well-planned budget allows for flexibility without derailing the project.
The cost to renovate a house in 2024 ranges from $19,500 to $87,970, with homeowners spending an average of $52,000. Factors like the size of the home, the quality of materials, and whether professional help is needed can influence the final cost.
One of the most significant decisions you must make during any renovation is which parts you will hire a professional home remodeling contractor near you to help with and which projects you will DIY. For example, you can easily manage tasks like painting walls, installing shelves, or replacing cabinet hardware yourself. However, more complex jobs—such as electrical work, plumbing, or installing load-bearing walls—should be left to licensed professionals. Mistakes in these areas can lead to significant safety hazards or expensive repairs down the road.
Not sure who to hire for a home renovation? Ask friends, neighbors, and family members for referrals.
Many people use the terms 'remodel' and 'renovation' interchangeably, but they're actually different types of projects. A remodel is larger than a renovation and changes an existing space's structure, design, or functionality. A renovation is more cosmetic. You can think of it like this—a renovation makes something old look and feel new, while a remodel makes something new out of something old.
Depending on the scope of your home renovation project, you may need to obtain permits from your local government. These permits ensure that the renovation complies with local building codes and regulations.
Neglecting to secure the proper permits can result in hefty fines, delays, and even legal issues. Common home improvement projects that require permits include adding rooms, modifying plumbing or electrical systems, and major exterior changes. Check with your local building authority to determine which permits you’ll need before you kick off any major home renovation projects.
Once the heavy lifting is done, it’s time to focus on the finishing touches. This is where you can truly bring your vision to life. Paint walls, install light fixtures, and add decor that reflects your personal style. In many cases, you will be able to skip hiring a professional and can tackle these small final jobs on your own.
Final touches like new hardware on doors, updated lighting, and well-placed furniture can elevate the space and create a cohesive design.
If you are fortunate enough to have a renovation budget of $100,000, your budget can take you pretty far. Considering the average cost to renovate a home in the U.S. is about half of that, it should be enough for several upgrades and aesthetic improvements. The actual cost will depend on factors like the size of the home, material choices, and whether you hire remodeling contractors or take a DIY approach.
If you are about to launch a home renovation project, typically your first step is to assess the current condition of the house and determine your renovation goals. This includes inspecting the property for necessary repairs, such as structural or system updates, and deciding what changes or improvements you want to make. Once you have a clear understanding of the scope of work, you can set a realistic budget and create a detailed renovation plan that will guide the project from start to finish.
