House Construction Cost Estimates to Calculate the Return on Your Investment

Planning of remodeling a house to increase home its curb appeal? Return on investment calculations for renovation is complex and inaccurate. That doesn't mean you shouldn't do home improvements to enhance home value, but you should do in-depth research first. Once you know an exact cost estimate for a home improvement project, consider the return value in terms of both personal satisfaction and real estate value. Neither can be correctly calculated but you can reach a rough house construction cost estimates of the return on investment. Look for an expert advice and reliable figures, but also and always remember the real estate rule: Home value always relies on location, location and location.
 

Where to Research Before Renovating a House
 

The annual Cost vs. Value Report is the most reliable and widely used guide to calculate return on home remodeling investments. Many Remodeling Magazines publish the guide based on surveys conducted with the help of realtors. The surveys ask about the changes in expected resale value based on specific renovation projects. The results states that the worst return on investment comes from a home office remodel, which recovers just 50 percent of the cost.
 

So, you should pay attention to the cost estimates for each project on the Cost vs. Value report. Not all renovations offer the same home resale value. A new countertop may raise the home value, but a granite countertop may be almost as valuable to a buyer as a much more expensive Italian marble countertop.
 

Regional Value Differences in Home Improvement and Additions
 

In some particular regions, window replacements are worth more than kitchen and bathroom remodels. While in others, siding replacement slides way down the cost-value scale, and kitchen renovations top the list. However, there are further variations within regions and cities. Therefore, consult local contractors and experienced remodelers about the most famous and valuable projects in your area. Their experiences and house construction cost estimates may differ from the Cost vs. Value report.
 

Before sinking some money into home remodeling projects this year, try to keep a few things in mind. What you'll receive on your investment depends entirely on your home value, the value of houses in your region, the housing market where you live, how soon you sell after making improvements, and the quality of the project itself. Installing a $20,000 stove in a $300,000 house, for example, just doesn’t make sense. Nor does it make sense to remodel your kitchen if your house is the only house in the neighborhood with just one bathroom.
 

The Cost vs. Value report renders valuable estimates for the return on investment of a variety of home remodeling projects, but fixes the numbers based on local expertise.

5 Important Types of Quotes for Home Improvement

There are several different types of home remodeling quotes used by contractors today: estimates, bids, price not to exceed, time plus materials, and hidden damage.

 

1.    Estimates
Estimates offer an educated guess about the time and material costs required to finish your medium to large job. Generally, you will be provided with a low and a high number that range within 20% of each other. The benefit is that you pay only the actual cost and no extra mark up to cover eventualities. The drawback is that you are not aware of your exact cost in advance, but if you are comfortable with a price range then you can save money.

2.    Bids
Bid is a contractor quotes for home improvement, labor and materials for your job. This will be the amount you will be charged. The plus point is that you know the exact cost up front. The disadvantage is that because contractor has to plan on unpredicted issues he is going to charge considerably higher than other methods.

3.    Time Plus Materials (T+M)
You have to pay only for the actual time worked and materials purchased. Even if most companies do not allow it, local contractors will advise you on materials to buy and help you create a shopping list so you can buy your materials and does not need to pay contractors for shopping time or warranty markup on the materials you want.
 

The major benefit of this method is that it is the affordable (estimates are always calculated at a higher hourly rate) and fastest way to get many small to medium sized projects done. Moreover, it is easy to expand your to-do list without changing any contracts. The downside is that you do not have a price upfront, but rather an approximate timeframe.

4.    Price Not to Exceed
This is like T+M but provides the homeowner with a price range that will not exceed a given quote. In general, the contractor will offer quotes for home improvement they are sure of, taking all unforeseen events into account. This approach will be slightly more expensive than T+M, but it is your second best choice to cut down your costs on small to medium sized projects.

5.    Hidden Damage
Damage discovered that could not be seen before starting your project is not included. Reliable contractors will notify you of this and provide you a written change order with any additional costs as a result before proceeding.
 

Depending upon the scope of your project, local contractors can work with you in any of these ways, and they’ve found it's best for you to choose T+M for small projects, and the Price Not to Exceed choice for larger projects.

What’s Behind Estimating Home Renovation Costs?

The price tag of any remodeling work comes with costs add up. If you've ever renovate a room or even a floor or countertop, you know well how the big things like tile, cabinets, windows are just the beginning, and can add a surprising amount to your total bill. There's almost always an affordable way to do something. Sometimes it can mean compromising on the quality of materials, and sometimes it mean doing the work yourself, but most importantly, saving money is all about thinking creatively, planning well and sticking to a budget.

How Costs Add Up?

Looking at one small factor of a major project can help in estimating home renovation costs involved for the complete project. Consider the bathroom flooring, for instance. Let's say you bring a tile you love at a good price. That’s great! Now add some caulk, grout, and sealer in order to have the rough cost estimate of your finished flooring. But before you even lay that tile you need to remove the old flooring. That means more labor, plus disposal or recycling costs and possible repairs to the subflooring will also be involved. Then you require a new layer of cement board, along with joint tape, mortar, and fasteners. Sum up those costs and pin it onto the cost of the finished flooring. This is how costs go on adding up.

How to Get Help in Home Improvement Cost Estimation?

It’s easy to make out why most people don't, and shouldn't, go it alone. Hiring a qualified local contractor is good early step if you want help in estimating home improvement costs. These professionals are creative problem solvers who perceive client's vision, preferences and budget and integrate it with the home itself to identify goals and parameters for the project. A contractor can also help you establish the costs involved to offer an insight of what's realistic. A little later in the course, a contractor can help you create detailed project specifications, which you can exercise to acquire accurate bids from contractors.

All in all, with the help of reliable contractor, the project specs can be incorporated into the work contract to eradicate any gray areas concerning the project, materials, techniques and other goods and services you're paying for.

Free Home Improvement Quotes- Finding Ways to Cut Down Costs

Kitchen and bathroom remodeling are considered to be most important home improvements that enhance the value of a home. But this labor-intensive renovation can get too costly. Even if you don’t do any change in room layouts, the simple job of replacing fixtures and finishes can be more expensive than a new car.

What builders say “pull and replace” renovation can cost from $30,000 to $52,000 for a 10-by-10-foot kitchen, and $14,000 to $22,000 for the average 6-by-7-foot bathroom. When you begin moving electrical wiring, plumbing, and walls, the costs substantially increases.

Budget-minded homeowners are looking for cheaper solutions by improving existing appliances and fixtures, refinishing kitchen cabinets and hiring local pros.  Contractors, in turn, are responding to the current demands for cost-conscious kitchen and bathroom renovation with free home improvement quotes indented to help out homeowners.

Finding ways to save money

1. Installation costs more dollars as labor accounts for about 60 to 70 percent of bathroom remodeling costs. To save money, you can install the toilet and do the painting, but take care of faucets. They don’t last very long and you probably don’t want a leaky faucet after two years.

2. Applying large tiles on walls and floors saves money. With large tiles, you have less grout lines and labor costs, and they can even make a room appear larger. You can also save money by not extending the tile to the ceiling around the tub or shower. Instead, you can install glass doors to craft a fresh look and cut costs.

3. If you are good in plumbing, you could renovate bathroom yourself with a new shower head, vanity, sink toilet, and light fixture at a nominal cost. But even a good DIY enthusiast may lack proficiency to update a bathroom in an older home.

4. Kitchen renovation can be less costly when major fixtures are replaced rather than moved to new locations. Replace the countertop, sink, cabinets and flooring, but not the appliances. Even in small kitchens, costs can increase when particular appliances are needed to fit a limited space. If you are finding it difficult to do, a local contractor can also help you. They will not only connect you with construction pros but will also provide you with free kitchen remodeling estimates. 

Hire an Interior Painter

Why should you hire an interior painter vs. deciding to pick up a bucket of paint and do the job yourself? Simple answer: Your local painter knows what he’s doing. Many painters will give you a free home improvement estimates on what it will cost to paint that room, or the kitchen.

Sure! It sounds fun to get the paint out, tape the walls and just take in the smell of paint. The reality is, your local painter just pays more attention to details. Finding and hiring the right one can be a difficult task as well.

Some tips before hiring a painter to get your job done:

•     Check your local painter’s references and online reviews if available.
•     Check licenses, insurances, bonds and references again.
•     Get a detailed estimate in writing.
•     Is he or she asking you to get your own permits? Run!
•     Does he or she only want cash payment? Run from that too!

One can never stop emphasizing: check references, check online reviews, check licenses. There are too many horror stories from homeowners falling victim in the hands of “wannabe” contractors.

Sit back and relax!:

Even before you have the local Painter come in and paint the walls, make sure you have your belongings (furniture's) out of the way so that paint does not ruin them. Get the kids, the dog, the cat and make the areas being painted off limits. Now, sit back, relax and have your local painter beautify your home.