Thinking of Renovating Your Home in 2023? Ask Yourself These Questions First
At Springhouse, as we’ve been receiving more and more calls about renovation, many of the questions center around this general theme: Should I stay, or should I go? A lot of work can be done to existing structures, and many times, it does make sense to stay and renovate—especially right now.
You might be struggling to put into words what you want, and we’re here to help define it for you. You’ve worked hard to get where you are, and you want to live in a beautiful home that supports your best life. So, let’s make that happen!
First things first: Should I renovate my existing home or build a new one?
Before we dive into cost, you might be wondering whether you should sell your home to either build a new one, find one on the market, or renovate the one you’re in. How do you decide? How can you make a confident move one way or another? Should you stay or should you go? With the harsh realities of today’s market, you have four big decisions to consider. It might help to take out a piece of paper and answer these questions honestly.
1. What is your heart telling you?
Our homes are everything to us. It's where we decompress, feel safe, meet our loved ones and rest at night. It should be your refuge from the world! So, you need to ask yourself: Do you love where you are in your heart? Do you love the neighborhood you're in? Are you friends with your neighbors? Do you have lovely memories you don’t want to leave behind? Do you enjoy the setting?
2. Is it economical to renovate your existing home?
What does your budget look like at the moment? Will your location hold the appraisal value after renovation? Are you already the largest or most expensive home on your street? How will you finance a renovation? Do you have the equity to borrow against? Money is very cheap right now—especially mortgages, which won't last forever.
Another important consideration: How long will you be in the home? How long will you have to recoup the money? You will never get every dollar back from a renovation (although, there are some renovations that pay you back more than others). In this case, the day-to-day value—aka, the enjoyment you get from your renovations—may be more important than the dollar-to-dollar value.
3. Is the structure and infrastructure of my house in good condition?
Do some legwork. Before making your decision to renovate or build, you’ll want to investigate the structure and infrastructure of your house. Is it solid? Is it in good condition? We’re usually pretty aware if we have water damage, sagging or foundational issues—but what about the infrastructure? Do you have to replace all the electrical in your house? Is the plumbing old or made of bad material that you’ll need to redo? Will you be replacing HVAC systems or separating them and running new ductwork? People don't usually think about these considerations, but they will certainly suck up your budget quickly.
4. What level of disruption can you stand?
The level of disruption a renovation brings depends on your lifestyle and what you’re renovating. Kitchens are obviously going to be a huge disruption, as well as a master bath—that being said, you usually have another bathroom to get you through for a few weeks. During the renovation process, there are people trekking in and out of your house during work hours. So, if you're working at home, and kids are in school at home, then you need to consider how much disruption that is, how loud it is, which parts of your home could be closed off, etc. Plus, you need to consider that delays, cost overruns and unknowns happen in every single renovation project. It will happen to you, I promise. It happens, so we account for it in the timeline and budget.
How much will it cost to renovate my home?
Now let’s talk about renovation expenses. How much does it really cost? What’s the most expensive part of the process? Let’s pull back the veil and discover what it’s really like to renovate your home.
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. 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.
Expense #2: Prepare for the unknown.
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?
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 renovating your home. 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!