If you don’t follow this rule, you risk spending too much (or too little)—and both can impact the value of your home.
The first day of spring welcomes warmer weather, the beginning of spring cleaning, and the start to remodeling season. That’s right, spring and summer are the on-season for remodeling your home, so it’s only natural to think about what improvements you want to make to your home this year.
The problem is, home remodeling costs aren’t cheap. Nearly one third of homeowners have significant trouble staying on budget when getting work done on their homes—and they tend to spend the most in the kitchen.
If remodeling your kitchen with marble or concrete countertops is top of mind this year, there are a few things you should know before diving in, particularly how much you should be spending on your efforts. According to HomeAdvisor.com, you should follow the 5 to 15 percent rule, which means your kitchen remodel should cost no less than 5 percent of your home’s value and no more than 15 percent.
Here's what that looks like. If you own a $500,000 home, for example, the lowest number you likely want to spend on your kitchen remodel will be $25,000 (5 percent). But you probably wouldn’t want to exceed a budget of $75,000 (15 percent). Spend less than 5 percent and you may decrease the value of your home. Investing more than 15 percent of your home’s value, however, could put you at risk for losing money when you sell your home.
Obviously, there are exceptions to every rule, but when you’re trying to set a budget for your kitchen remodel, the 5 to 15 percent rule is a good place to start. Once you’ve decided on an amount that you’re willing to spend, it’s on to the fun part of the remodel: choosing countertops, selecting shiny new appliances, and toying with the idea of barn-board plank flooring. Let the Pinterest boards roll.