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How Much Do Home Remodels and Additions Cost? And How to Afford Them

Read Time: 5 Minutes January 30, 2023

Do you have your dream home in mind? Are you ready to finally start living in it instead of dreaming about it? If you’d prefer not to move, it could be time to update your home!

Home remodels and additions help many homebuyers transform their current home into the home of their dreams. Before you go out and hire contractors or pick out design elements to fix up your home, it’s important to get an idea of how much you can expect to spend to get the job done. Rounded up below is a cost breakdown of popular home improvement projects, renovations, and upgrades based on tracking and data from experts at HomeGuide. Spoiler: We’ve even included a financing tool you could use to afford it all!

Bathroom Remodel Average Costs

The total cost of a bathroom remodel varies based on size, materials, layout changes, and labor costs. Typically, you can expect a bathroom remodel to cost $120 to $275 per square foot1. For example, the average smaller bathroom might cost anywhere from $2,000 to $5,0001. The average 5x7 bathroom could run you anywhere from $4,200 to $9,6001. The average 8x8 bathroom could run you anywhere from $7,800 to $17,5001. The average master bathroom could run you anywhere from $10,000 to $30,0001.

Bathroom Remodel Home Value Increase

A bathroom remodel could increase a home’s value, make for a larger resale value, and averages a 60-70% return on investment1.

Kitchen Remodel Average Costs

As with any remodel, kitchen remodel costs vary based on size, materials, layout changes, plumbing changes, and labor costs. Typically, you can expect a kitchen remodel to cost $100 to $250 per square foot2. On average, homeowners spend between $12,800 and $21,200 total2.

Types of Kitchen Remodels

A minor or midrange kitchen remodel includes cosmetic upgrades without any design changes. On average, this type of remodel could cost you $12,000 to $21,000 (minor) and $29,000 to $64,000 (midrange)2.

Cosmetic Changes Include:

  • Painting
  • Replacing cabinet door handles
  • Installing new countertops
  • New light fixtures
  • Flooring like vinyl or laminate
  • Backsplash
  • Kitchen island

An upscale kitchen remodel is a complete remodel, changes from cosmetic to layout to design. On average, an average upscale kitchen remodel could cost you $126,0002.

Upscale Changes Include:

  • New floorplan
  • New appliances
  • Replacing countertops
  • Plumbing
  • Electrical work
  • Tile and flooring
  • New cabinetry

Kitchen Remodel Home Value Increase

The return on investment depends on the total cost and changes to your kitchen, along with other factors like your neighborhood, assessed home value, and how much buyers are willing to spend. On average, homeowners can expect a 50-84% return on investment2.

Finish an Attic

Need more space in your home, an extra bedroom, home gym, an office, or playroom? Instead of building out or up, you could make use of the attic. The average cost to finish an attic typically costs homeowners $25,000tt o $75,0003. Sound steep? It may be worth it. By adding square footage, you could also add value to your home! It's important to note that converting an attic could include adding stairs, refinishing the walls, floors, and ceiling, along with structural, plumbing, and electrical work.

Add a New Deck

On average, a homeowner spends $2,500 to $10,000 when adding a new deck to their home3. As with any home improvement project, the total cost depends on size of the deck the quality of materials chosen and local labor fees.

Add a Room

Need another bedroom? Enclosed porch? Nursery? Grand walk-in closet? An addition may be best. As with any home project, the average cost of adding a room depends on the size of the room, materials, your neighborhood, and location of the addition. On average, home additions cost homeowners between $20,000 and $75,000 all said and done4.

Average Costs of Additions4:

  • Bedroom: $10,300-$24,900
  • Master Bedroom Suite: $59,400-$96,500
  • Bathroom: $18,000-$47,000
  • Sunroom: $8,100-$30,000
  • Family Room: $34,400-$83,200
  • Kitchen: $25,100-$43,400
  • Second Story: $100,000-$350,000

How to Afford Home Remodeling and Additions

If you don’t have (or don’t want to spend) the cash needed to fund the changes you want to make for your dream home, a cash-out refinance could be the solution for you. A cash-out refinance is a type of loan where you “cash in” part of your home’s equity for cash in hand. With each monthly payment (the principal portion) on your original mortgage, you increase your home’s equity. If you’re looking for a way to tap into home cash for home improvement projects, we have a variety of cash-out refinance options available.

Ready to learn more about cash-out refinances? Check out our Cash-Out Refi FAQs, or get in touch with us today!

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