Where to Splurge and Where to Save

Where can I splurge? Where should I save? What will give me the best resale value?

These are questions you should be asking yourself when you’re ready to remodel your home. However, there are a few things you can do to save yourself from splurging on everything!

Most homeowners think they have a grasp on remodeling costs by watching HGTV. However, a lot of those shows like Fixer Upper (based in Waco, Texas, by the way) are dealing with a completely different cost bracket than, say, New York or Los Angeles… or even other cities in Texas.

According to Zillow, the median home price in Waco, Texas is $116,000. To put this into perspective, a major kitchen in the mid-range can cost $75,000 in Los Angeles! That’s almost an entire home in Waco! To paint an even more expensive picture, if you’re going for a more upscale kitchen, you’ll blow your Waco home price tag out of the water by spending $140,000 on just the kitchen.

But that doesn’t mean you can’t splurge and save.

It just means you need to apply a little bit of strategy and understand your local market better so that you know what kind of money you’ll be spending.

CostvsValue.com is a great tool for helping you figure out resale value on your remodel. If you’re flipping a property or thinking of updating it to increase the value of your home, this website provides a chart that shows you how a particular remodeling project affects the resale value of homes in your area. More specifically, it shows you job costs and average cost recouped at sale so you have an idea of what you’re getting yourself into. This chart will help you determine if your remodel dreams will provide a better check when you’re ready to sell.

Where your costs vary also rely on the difference in the scope of work and the finish materials.

If you want something with an upscale level of materials, then you’ll definitely be splurging more. For instance, the material cost difference between linoleum and something luxury, like marble tile, is  massive.

Also, where in your home you remodel can make a difference in resale value. It is generally considered that a bathroom remodel will give you more return for your money. A mid-range bathroom remodel is considered 35 square feet and can give you a 75% return. An upscale bathroom remodel usually means you’re expanding from 35-100 square feet and can give you a whopping 91% return. Both are favorable numbers.

Another way to strategize costs is to prioritize function over style.

Splurge your time on creating a functioning space. If you’re only thinking style, you might forget about storage, space, furniture accommodation, and other unexpected factors that will end up costing you more to fix later down the road than they would have, anticipating the problem to begin with. How much extra will those costs be when you realize the cabinet doors can’t open all the way because they run into the refrigerator? This should all be figured out before you ever take your first swing of the hammer.

If you work with the right contractors, architects, and designers, you should have a realistic estimate of what you’ll be spending where. They can help you decide where you want to splurge and where you should save even further. For more info on assembling your A-Team of remodelers, click here!