How Much Will It Cost to Renovate My Home?
Part 2 of a 4 part series
For the next month, we're going to be discussing renovation—what you should be doing, questions you should be asking, and things you should consider. Last week, we discussed whether you should sell your home to either build a new one, find one on the market, or renovate the one you’re in. This week, we’re going to talk about renovation expenses. How much does it really cost? What’s the most expensive part of the process? True, watching HGTV is fun, but many of the shows project unrealistic timelines and budgets. Let’s pull back the veil and discover what it’s really like to renovate your home.
Before we dive in, these numbers do not account for DIY projects—we’re talking mid- to high-end finishes, full renovations and a professional team with Project Management. We’ll also be discussing square footage costs. Currently, new construction here in the Midwest is averaging around $200 to $250 per square foot. This includes higher lumber prices and labor costs that we are currently experiencing. The bottom line? Everything is expensive at the moment, and I don’t believe these numbers are coming down anytime soon.
Expense #1: Consider the type of room and space.
Renovation costs depend on the spaces you’re choosing to renovate, and whether you’re renovating a space you already have or adding a new space altogether—the latter being way more expensive than renovating what you already have. Keep in mind, when you add space, it includes more trades, like windows, foundation, floor framing, roof framing, extending the HVAC, etc. Let’s break this down by room:
Kitchen
Kitchens are the most expensive room to renovate, and for good reason, too. We entertain, cook, and eat here. Currently, we are quoting around $200 per square foot for a renovation, including mid- to high-end cabinets, gorgeous countertops, beautiful flooring, and new lighting.
Master Bathroom
Master baths are the second most expensive renovation, sitting around $150 per square foot. This includes high-end finishes, a big tub, expensive tile, and more. To add on an entirely new master bath, the bathroom space alone will cost you around $300 per square foot, while a master addition will be closer to $250 per square foot.
Shared Bathroom
Shared bathrooms, like a half bath or kid’s bathroom, are typically anywhere from $12,000 to $20,000. This includes plumbing fixtures, tile, light fixtures, etc.
Open Space
Open space is the easiest renovation, as it doesn’t pack a lot of expenses into one room. This project usually includes flooring, painting, a couple of light fixtures, and maybe new windows. This puts you around $75-$100 per square foot on average. If you’re redoing a big family room, this would also include a new face and mantel for your fireplace or running new electric.
Expense #2: Prepare for the unknowns.
You also need to factor in the unknowns of a renovation—especially the unknowns of your house’s structure and infrastructure. Are you moving plumbing, electric, or HVAC? How much of it do you need? Is any of it outdated? Does it need to be replaced? This could be an additional $10,000! To avoid this surprise cost, you need to hire a professional to conduct a full investigation of the structure and infrastructure. Plan to do this before you spend a cent on anything else. Remember: surprise costs are far more expensive than planned costs.
Expense #3: Control your finishes and selections.
Rest assured, you do have some control over your expenses when it comes to finishes and selections. During this process, you’ll be choosing appliances, countertops, and flooring one at a time. You’d be surprised how quickly this adds up! Until you see everything added up in your spreadsheet, you won’t fully understand where everything is fitting into your budget. Once you have this number, make some decisions and prioritize what’s important to you. What’s going to make a real difference five years down the road?
For example, lighting trends come and go within five years—don't be tempted to spend $20,000 on a decorative fixture that you're going to eventually replace. On the other hand, it may be ten years before you're sick of your countertops. Engineer your costs and do some legwork ahead of time for countertops, tile, or big-ticket items like a soaking tub in a bathroom or appliances. This is where you can make a big difference in your pricing.
How can I prepare for the expenses of my home renovation?
Get your plan on paper with an architect before any real pricing is done, possibly even before you bring in a contractor. A plan will ensure everyone is talking about the same thing.
Once your plan is in place, hire professional contractors with a lot of experience in what you’re asking them to do, and pay them what they’re worth. For example, if you’re looking for luxury renovations, hire someone with luxury experience.
Lastly, you want to listen and trust their experience, but it’s also okay to walk through each line item before settling on the price. You may want to compromise on certain parts or spend more on others. If they’re telling you the renovation is a $50,000 project, try to get it down if possible. That being said, don’t hop from one contractor to another, thinking one is going to do it for $30,000, because that’s not going to happen. This will likely end in disaster.
Have any questions?
Although we covered a lot in this post, you may still have some other questions about renovations. Whether you’re involved in the custom home process now, or even just considering it, join our free Facebook group—we’ll help you answer any questions you might have! Also, feel free to invite anyone that you think would benefit from this collaborative. You’ll not only get advice from me, but from other people who have been through this, too.
Start the process.
When it comes to designing and building a custom home, nothing beats having a trusted, experienced team of architects on your side. Let’s set up a call to meet, discuss your goals, answer your questions, and settle your fears. We can’t wait to meet you!