How to Calculate the Cost of Renovation

Calculating the Cost of Renovation

Residential and commercial remodeling or renovations are always exciting, but most people have a tough time creating a budget for them. This is a big challenge because you have to calculate the cost of a project you have likely never done before.

Most homeowners and business owners are not expert building contractors in Kansas City or St. Joseph, Missouri, which means they may not know exactly how to calculate the cost of renovation correctly.

...since bids are calculations made by professionals, they tend to give you a better idea of what your remodeling may cost."

- Blackstone Construction

Let’s discuss how to calculate the cost of renovation, to help guide you on what your residential or commercial remodeling may cost.

Average Costs

The average cost of remodeling a home that is 1,000 square feet is around $20,000. This cost can go up to around $90,000 if the home is 4,000 square feet. Older homes typically cost more to renovate, mainly because their plumbing, electrical, and other systems are not up to code.

Unless you plan to renovate a single space in your residential or commercial property, it is always better to create a budget for each individual space first, then add it up.

For example, the cost of a bathroom renovation can range anywhere between $3,000 to $25,000, whereas kitchen remodeling may cost anywhere between $5,000 to $60,000. Renovating a basement may typically cost under $25,000 in most cases.

What to Spend

While there is no upper limit on how much you can spend on a renovation, you should limit yourself according to the value of your property. A good rule of thumb is to spend no more than 15 percent of your property’s value on a single room.

For example, if your residential home is worth $100,000, you should spend no more than $15,000 on a single bedroom. You can extend this limit to $20,000 for a kitchen or basement, but no more.

Spending any more than this will not yield a better value at the sale of your property. No one wants to pay $150,000 for a $100,000 property with a $50,000 kitchen remodel.

Research and Calculate

Calculating the cost of renovation is not too difficult, but it may require some time and research. First of all, you need to consider your location and know the size of the space you are remodeling.

Is it just a small bathroom in Kansas City, a mid-sized kitchen in St. Joseph, or an entire property in Missouri? Prioritize your remodeling needs by creating a list of all the things you want in your renovation and then separating the things you absolutely need.

Then you can start to research online, at showrooms, in shops, and even at open houses to figure out what your needs cost and how much you have left over for your wants.

There are also plenty of free online resources and renovation calculators that can help you estimate renovation costs by considering factors like your location, size of the project, type of room, material quality, labor, etc.

Typically, around 50 to 60 percent of your expenses are on materials, 20 to 30 percent on labor, and 10 to 20 percent on other costs.

Incorporate a Financial Buffer

When calculating the cost of renovation, it is always a good idea to keep 15 to 20 percent of your maximum budget reserved for unexpected expenses. Most online calculators will NOT do this for you.

Shop Around

Once you have all this research and information, you can start discussing your remodeling project with a trusted building contractor in Kansas City or St. Joseph, Missouri. They can help you make more accurate calculations and estimates to determine the cost of renovation.

But don’t just talk to one building contractor. Contact at least 3 trusted professionals or companies in your area and get bids from each. A “bid”, “quote”, or “estimate” is the estimated cost of services a building contractor charges you for a particular renovation or new build project.

Since bids are calculations made by professionals, they tend to give you a better idea of what your remodeling may cost.

The Bottom Line

When it comes to residential or commercial renovation and their costs, there is no one-size-fits-all approach. Your budget may be such that you end up spending the entire value of your property on renovations for a home you want to live in.

On the other hand, a business owner may be restricted to a tighter budget for their commercial kitchen. Regardless, by following the mentioned guide, you should be able to arrive at an accurate estimate according to your location, property, and remodeling needs.

Get the best licensed and insured building contractors in Kansas City or St. Joseph, Missouri for your residential or commercial renovation needs. Click here to get a free quote for your new residential or commercial construction, remodeling, or renovation project from Blackstone Construction.