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According to TLC star Carter Oosterhouse, the number one rule of home improvement is to budget appropriately.
A good rule of thumb for determining your home renovation budget, the pro says, is figuring out if you're going to get a return on your investment.
You should be strategic when renovating — go after the room (or rooms) that will make the best investment.
As Rach guessed first, the kitchen is a solid choice, but it isn't the only one. While it may not immediately come to mind, Carter says a finished attic or basement actually has the same amount of value as the kitchen — so you should budget the same amount for a renovation.
"Lots of times, when they come in and appraise your home, they don't [include] your basement or your attic [in] your overall square footage. Those are bonus, added rooms," Carter says. This is helpful information to keep in mind if and when you're trying to sell your home.
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If you have a $200,000 home, the kitchen makes up 10-15% of the home's value, so you should budget $20,000-$30,000 for a kitchen renovation. A finished attic or basement has the same value and budget.
Carter shared a handy graphic that illustrates which rooms in a home have the highest and lowest values, so you can decide what to prioritize. The breakdown can also help you determine how much money to put toward a renovation, so you can ensure the highest return on your investment (ROI).
Rachael Ray Show
These are the areas you should focus on in order of importance, starting with the rooms that have the highest ROI.
1. KITCHEN
% of Home's Value: 10-15%
Budget: $20,000 - $30,000
2. FINISHED ATTIC OR BASEMENT
% of Home's Value: 10-15%
Budget: $20,000 - $30,000
3. MASTER SUITE
% of Home's Value: 10%
Budget: $20,000
4. POWDER ROOM/BATH
% of Home's Value: 5%
Budget: $10,000
5. PATIO, DECK & LANDSCAPING
% of Home's Value: 2-5%
Budget: $4,000 - $10,000
6. LIVING ROOM, DINING ROOM OR BEDROOM
% of Home's Value: 1-3%
Budget: $2,000 - $6,000
"It's a pretty good scale to live by to know how much you should be spending so you're not breaking your bank," Carter says.
