Another rule of thumb when it comes to home renovations is to simply be prepared. Projects can go over budget for any number of reasons, so you’ll want to incorporate a contingency fund. Set up your budget with 10%–20% extra to absorb unforeseen costs.
Also, you need to have a general understanding of your neighborhood and your home’s relative value within it. In general, if your home is more valuable than most nearby homes, a remodel has the potential to be a bad investment.