How To Estimate Remodeling Costs

Beautiful kitchen

After living in a property for several years, you might feel the urge to renovate it. Home makeovers are useful because they make your home more comfortable and may increase its value, depending on the renovations you make. So, how much will it cost you?

The best way to estimate a remodel cost is by using an online remodeling calculator. That said, these tools are not precise, since they cannot account for the variations that your makeover project might need. However, if you only want to know that your plans are within your budget, these calculators are an excellent place to start. 

Factors That Affect the Cost of Remodeling Your Home

On average, American homeowners spend between $14,000 and $50,000 on renovating their properties. If you are renovating one room, it can cost you less than $10,000. High-end makeovers that involve the addition of luxurious features tend to cost from $75,000 upwards, depending on the size of the property and the amount of labor required. 

Here are the factors that affect the cost of remodeling your home.

Quality and Cost of Professional Labor

Established contractors who have many clients and years’ worth of experience tend to charge higher fees than newer companies. This is understandable, as you can vet the quality of their previous works, which can be impossible with new establishments. 

Geographic Location

If you live in an affluent neighborhood, expect to pay more money for remodeling than those in low-income locations. The cost of professional labor can vary by as much as 20%, depending on your location. For this reason, it is advisable to get remodeling estimate quotations from local experts.

Size of the Project


Generally, bigger projects are cheaper per square foot compared to smaller projects. For example, it is often more expensive to renovate one small bathroom than two bathrooms. Likewise, it is more cost-effective to do a complete home makeover than remodeling one room at a time. This is because contractors have to account for overhead costs, set up, and cleaning for every project they handle, regardless of size. 

Complexity of the Job

Another factor that influences the cost of remodeling is the complexity of the project and the accessibility of your home. Jobs that are labor-intensive and time-consuming can cost more than straightforward tasks. For instance, if your house has multiple floors with a high-pitched roof, you will likely pay more money than a homeowner living in a bungalow with the same-sized roof.

Quality of Materials and Finishing Surfaces

Materials make up 60% of your remodeling budget. The cost of material used can vary significantly, depending on how much you are willing to spend. If you are on a tight budget, you can purchase low-cost materials.  Conversely, if you don’t have financial constraints, you may choose to use high-end, luxurious products. 

Some of the most expensive materials are kitchen appliances, kitchen cabinets and countertops, and heating and cooling systems, like boilers and furnaces. As mentioned above, your budget determines what you get. Experts recommend investing in mid-level materials because they offer the perfect balance of quality, price, and visual appeal.

Unexpected Issues

Sometimes, you can encounter an issue that was not noticeable before starting the remodeling project. These usually include problems like water damage, mold, structural issues, and plumbing and electrical hazards resulting from poor installation. 

Once you notice these issues, you have to address them immediately or halt the project entirely. Since these problems tend to be expensive to deal with, it is wise to set aside at least 15% of your remodeling estimate budget for miscellaneous expenses. For instance, if you were planning to use $40,000 to do a home makeover, allocate $6,000 for unexpected issues.

How to Finance a Remodeling Project

If you have enough resources, the best way to fund a home makeover is by avoiding a loan and paying out of pocket. However, this is not possible for most American homeowners. In case you find yourself in such a situation, here are some of the ways you can finance your remodeling project:

Home Equity Line of Credit

A home equity line of credit works like a credit card, with the only difference being that you collateralize your home. The amount of equity you have and the lender determine your limit, and you can withdraw funds as frequently as you’d like, provided you do not exceed the limit. However, there is a set minimum amount for every withdrawal. 

Personal Loans

Personal loans are popular because of the simplicity and speed of the application process. Moreover, you don’t need to have collateral to qualify for any amount. This means the payment plan entirely depends on the agreement between the lender and the borrower. 

Since they are unsecured, most personal loans have a lower borrowing limit than other loan types, and the interest rates are usually higher.

Home Equity Investment

With a home equity investment, a company like Point will invest in a portion of your home’s equity. In return, you will receive a lump sum of cash at very flexible terms, and you will get to retain the ownership and control of your home.

You have no monthly payments, and you may choose to buy back your equity anytime within a 30-year term without worrying about prepayment penalties. In exchange, you repay the amount plus a percentage of your home’s appreciated value over the course of the term.

Credit Cards

Credit cards give you a simple way to finance your renovation project. This is because they are easy to access, although the interest rate is a bit high. Therefore, it is important to pay back your loan as quickly as possible to maintain your good credit score. Failure to repay your loan within the agreed period might make this financing option too costly.


Depending on the size of your property and the complexity of the project, a home remodeling project can take a few weeks or several months to complete. 

Although it can take a massive chunk out of your savings, doing a home makeover is a worthwhile investment. Besides making your home more comfortable, it may increase the potential resale value. If you don’t like the current condition of your property, start preparing for a remodeling project today. The first step is identifying the areas that need attention and consulting a local professional to give you an estimated quote. Once you have this information, think of how you will finance the project. If you’re interested in using your home equity to cover your remodeling costs, you can use Point’s homeowner calculator to determine the value of your property and see how much equity you can get.


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