*some of the photos below are courtesy of Redfin
How much does a home renovation cost? A lot.
The answer of course depends on how much work you do to the home, prices in your area, and how much of the work you do yourself (DIY) vs. hiring a contractor.
I can't give you a definitive answer on how much a home renovation costs,
BUT I can share with you my experience: how much I paid, what I got for the money, AND how much I've made on the home in the last three years since I purchased.
Intrigued? Let's go deep.
Before we get started, the money I've spent on my little fixer upper is split into two categories. The first is how much I spent from the 203k renovation loan budget during the initial renovation phase (from August – November 2013), the second line (if there is one), is how much I spent in the three years since.
There are a few rooms (mainly the downstairs bedrooms) that didn't receive much work so I didn't include them, but I have done at least a little work to every nook and cranny of this home in the last three years. Sometimes I still continue to tweak.
When I first walked through my home a few years ago, there were a lot of things that as a novice, I didn't think needed fixing. When you live in a home everyday, especially when you start working there…it's really easy to get into the fixer upper mindset and keep making mental lists of everything that isn't just-so.
I've included all of it because (as with any investment) the money you spend impacts your investment's bottom line. I have tracked what I've spent, but the numbers aren't exact. I went back and looked at this expense category in my Learnvest software (It's FREE!) and could calculate broadly what I spent, but you know, three years later I'm not exactly sure what that $300.00 at Lowe's was for.
How Much Does a Renovation Cost? Let's Go Room by Room
- What I Spent: ~$25,000
- What I Got: All new plumbing, electrical, HVAC and hot water heater for the house. New drywall in places, and refinishing of the home's original hardwood floors. New light fixtures for the home (and a few I got for free)
- Money Spent Since 2013: $1800 on a brand new set of stairs up to the attic.
- What I Spent: $7650
- What I Got: New landscaping to help with drainage, new front steps, and a new retaining wall.
- Money Spent Since 2013: $1200 on additional drainage work to front landscaping and to landscape the front with flowers when I was trying to sell the home with Redfin last Fall. , a cheap front door makeover that was only $15
- What I Spent: $14,061
- What I Got: New everything: appliances, sink, countertops, cabinets, and flooring.
- Money Spent Since 2013: $584.63 on one side of backsplash in the kitchen (after I decided to upgrade from the Smart Tiles, window treatments….and changing the paint color…. twice.
- What I Spent: $1200.00
- What I Got: new shower tile and fixtures, new vanity and light fixture.
- Money Spent Since 2013: $1400 on new flooring, new drywall and linen closet, new hardware on the walls and upgrading the faucet fixture.
Office & Sunporch
- Money Spent since 2013: Both rooms just got the paint treatment. It cost me $250 to give the sunporch a makeover and ~$100 + 2 years to finally get all of the office trim painted.
- What I Spent: $2500
- What I Got: New laminate flooring, paint and light fixtures upstairs.
- Money Since 2013: $1420.26 to convert former master closet back into a fourth bedroom, and to freshen up the bathroom (new mirror, light fixture, faucet, hardware and moving the attic access doors) when I was trying to sell the home. Otherwise, I haven't done much to this area, as I'm trying not to over build for my area.
Grand Total on All Renovations: The total for the 203k renovation was ~58,000 (which I wrote about in this post) + the $6,754.26 I've spent since 2013 makes me all in at $64,754.26.
So around $65,000 to renovate a home top to bottom. Yikes.
Total Spent vs. Total Earned
But has it been a good investment? I definitely think so. Let's check out the numbers below.
Since I bought the home I've earned:
- $40,000 in a state income tax credit (over three years) for rehabbing a historic property.
- $3,000 each year of loan forgiveness for living in the home as my primary residence. This is part of the down payment assistance program I leveraged to get into the home for just $1800.00.
- $16,410.77 from renting out bedrooms the last three years.
- ~$60,000 increase in home equity.
For a total of $119,410.77 of money earned on the home, or $39,803.59 per year.
When I think about how I could've been renting this entire time instead of having my money make money, I know it was a good investment, despite all of the trouble it's been.