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Renovate your home without wrecking your budget

These remodeling dos and don'ts could help you make the most of your home — and potentially even increase its resale value



HAVE ALL OF THOSE HOME IMPROVEMENT SHOWS got you thinking about renovating your kitchen or knocking down some walls and expanding your living room? If so, you’re not alone. In fact, in 2023, homeowners are projected to spend an estimated $485 billion on home improvements and repairs, up just slightly from 2022 but a 19% increase over 2021.1 Their motivations are generally twofold: to make their lives a little nicer by enhancing the space they live in, and to protect their home’s value.


In addition, since housing prices have risen substantially in the last decade,  homeowners are frequently more willing — and able — to tap their residence’s equity. And the right kind of renovation can increase your home’s worth. But keep in mind that even a moderately ambitious renovation project can be expensive and time-consuming.

Before you start researching contractors and picking out paint colors, make sure your time and money will be well spent and that your project will add to your home’s value — not just your stress level. Here are a few dos and don’ts to consider.


Renovate or not?

First, check out comparable homes in your area. Would your home suffer by comparison if you put it up for sale? How many bathrooms and bedrooms do they have on average? Do most have gourmet kitchens and finished basements? If you decide you want — or need — to keep up with the Joneses, then do a little research to see how likely it is that you’ll be able to recoup the cost of your proposed renovation when you sell your home. (The slideshow below can help.) How much would it matter to you if you couldn’t eventually recoup those costs?


Don’t price yourself out of the market.


As you think about your proposed renovations, also keep in mind that you could make your home more difficult to sell by adding too much to its value.


Putting in that gourmet kitchen might make your house the most expensive one on your block if you try to recoup the cost when you sell. Plus, renovations don’t always make up for their cost when you put your home on the market. According to the Remodeling 2023 Cost vs. Value Report, for instance, you are likely to recapture only 42% of what you spend on a major kitchen remodel.2


Do stay open to the possibility of moving to a new home as an alternative.


If, after pricing out your renovation options, you find that the cost — and inconvenience — outweigh the gains, you might consider looking for a house that already has the amenities you want.


Decided to go ahead? Now, how will you pay for the renovation?

With any renovation project, it’s easy to get caught up in the fun decisions — selecting your fixtures, appliances, colors and decor. But before you get too carried away, make sure your finances are in order.


Don’t start without a budget.


A ballpark figure isn’t quite enough — it’s important to establish exactly how much you’re willing to spend. There’s an all-too-common phenomenon known as scope creep, in which you add a little of this and a little of that, and before you know it your budget is blown. Knowing (and sticking to) your number will help you determine early on what you can afford — and help prevent disappointment and financial stress later on.


Do research financing options.


If you’re not paying for your renovation with cash you’ve saved, you’ll need to borrow money. A home equity line of credit may be an attractive option, allowing you to pay your expenses as they come up. If you have enough equity in your home and your current mortgage interest rate is higher than rates for a new mortgage, you might also consider a cash-out refinance. If you don’t want to borrow against your home, look into traditional bank loans or credit card promotions, including limited-time 0% APR financing or reward programs that offer cash back.


How’s your money best spent?

Which is a better use of home improvement dollars — updating a serviceable but somewhat tired kitchen or replacing a houseful of old, drafty windows? When you eventually sell, potential buyers may love a new kitchen, but they’re likely to balk at glaring structural issues.


Don’t underestimate the value of quality structural upgrades.


Redoing your siding may not be as sexy as adding a master bedroom suite, but it can be pretty attractive when it comes time to sell. According to Remodeling magazine’s 2023 Cost vs. Value Report, if you buy new vinyl siding you can recoup 94.4% of the initial cost (on average).2 Not only does it give your house a visible face-lift, but it also makes for a warmer, more energy-efficient home.


Do look for smaller projects that add immediate value.


Consider replacing your front door with a higher-quality version. First impressions matter, and the door is the first thing that friends and neighbors — and potential buyers — notice when they walk into your house. Rather spend your renovation budget elsewhere? Add a fresh coat of paint to the door and buy a new welcome mat.


Do think about what you may need in the future.


Are you planning to stay in your home as you age? Then you might not want your proposed renovation to include additional stairs or a doorway or hall that might not be easily navigable with a wheelchair or walker. Think instead about things like a shower with seating and an anti-slip coating, or kitchen cabinets with pull-up and pull-down shelves.

Do it yourself or hire a pro?

You can sometimes save money by tackling a renovation project — or part of it, like painting or spackling — yourself. With thousands of how-to videos online, it’s easier than ever to become a do-it-yourself (DIY) expert. But know your limits. A project that has to be done twice is the most expensive project of all.


Don’t take on a project beyond your abilities.


To save money, it might seem like a good idea to tackle costly tasks yourself. But some jobs like rewiring an outlet or retiling a bathroom are best left to the pros. Taking on a project for which you’re not qualified could be dangerous as well as ultimately more expensive (when you have to hire a contractor or handyman to fix the result).

Do your homework before hiring a professional.


Recommendations from friends and relatives may be useful, but don’t stop there when you’re hiring an electrician, plumber or contractor. Nationally known websites offer local customer reviews that can be valuable resources. And before you hire anyone, always get a face-to-face consultation and cost estimate.


Remodeling your home is a big project even if someone else is doing all the work. But creating the home you really want can be deeply satisfying — especially if you do it at a cost that makes you feel as comfortable as your house does.

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Joint Center for Housing Studies of Harvard University, “Leading Indicator of Remodeling Activity (LIRA),” January 2023

Remodeling 2023 Cost vs. Value Report. © 2023 Zonda Media, a Delaware Corporation. Complete data from the Remodeling 2023 Cost vs. Value Report can be downloaded free at


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