How to Estimate Home Renovation Costs - Moving.com (2024)

Setting a budget for a home renovation can be difficult, especially if you’ve never done it before. Home renovation costs vary widely depending on what you’re doing, where you’re doing it, and whether you’re doing the job yourself or hiring it out to a professional. Other cost factors—including the size of the space and the materials that you’re going to be using—are just as important in coming up with your estimate. Oh, and don’t forget about the unforeseen costs often associated with renovations, such as surprise electrical work and whatever else might be hiding behind the walls.

Here’s the thing: coming up with an estimate for home renovation costs isn’t easy, and you might not even be able to nail it right on the head (no pun intended)—but it is necessary. A renovation, whether it’s one room or an entire house, is a major undertaking, and a pricey one at that. It’s important that you have a general idea of what you’re going to need to spend to do the job right, and that you know you have enough room in your budget to make it happen.

Fortunately, we’ve got some tips that can help you estimate your home renovations costs and get a handle on your budget. Keep reading to learn more about the factors you’ll need to account for and the standard costs that will help guide your total renovation spend.

5 Factors to Consider When Estimating Home Renovation Costs

Let’s circle back for a second to the key factors that you’ll need to keep in mind when you come up with an estimate for your home renovation costs. While there are certainly a lot of things that contribute to your final costs (including those aforementioned unforeseen issues), these five factors are where you want to start when it comes to setting your budget.

1. The extent of the remodel
   

   A half bath remodel is going to cost less than a full bath remodel, and certainly less than a whole house remodel. Likewise, you’re going to have to allot more funds if you plan to knock down walls, rearrange a layout, or add on square footage. Your first step in estimating home renovation costs then is to outline exactly what the extent of the job is. Larger jobs and jobs that include rooms like kitchens and master baths are always going to warrant higher budgets.

2. The size of your space
   

   Smaller spaces usually equate to smaller renovation costs, and for obvious reasons. The more space you’re working with—both room per room and as a whole—the larger your renovation budget is going to need to be. On average, you’ll need to assign about $10 to $60 a square foot, depending on the room and where you live.

3. The condition of the property
   

   The condition of the home matters—a lot. Older houses almost always come with higher renovation price tags. The same goes for homes that weren’t properly maintained by previous owners, or that have outdated appliances that are on their last leg. Before you can estimate home renovation costs on any property, you need to have a careful inspection to clue you in on the conditional features that are going to affect your bottom line.

4. Where you live
   

   The higher the real estate prices in your area, the higher the home renovation costs. Regional differences play a major role in setting your reno budget, with renovation costs in high-price neighborhoods clocking in at about 20% more than other neighborhoods.

5. Design and materials
   

   Your plan for the space is a major determining factor in home renovation costs. Fortunately, it’s also one of the easiest to adapt if needed. Budget out your project, including a general markup of what you’ll need to spend on things like cabinetry, flooring, and windows. If it’s more than you want to (or can) spend, look at alternate materials and design ideas that can pare down your home renovation costs.

   See Also

   Home Renovation Budget Template: How To Determine Your Home Remodeling Budget | ProSource Wholesale®

Average Home Renovation Costs

The typical range for a home renovation costs between about $18,500 and $75,700, according to HomeAdvisor. That’s a pretty big range. So how does it all break down? Let’s take a look at what you might expect to spend room by room.

• Kitchen – Average Cost: $25,071
  The kitchen is the most expensive room in a house to renovate. That’s because there’s a lot that goes in to a kitchen redesign, from flooring and cabinets to counter tops and appliances. It all adds up fast, and will probably eat up a major portion of your renovation budget.
• Bathroom – Average Cost: $10,449
  There’s a lot of variability in terms of bathroom renovation costs (size of the space, whether it’s a half bath or full bath, etc.), but the average cost is between $10,000 and $11,000. Need to convert a half bath to a full bath? That alone will cost you at least $5,000, so be sure to consider that when pricing out the job.
• Living room and bedrooms – Average Cost: $1,000 to $5,500
  Living rooms and bedrooms tend to be quite reasonable as far as home renovation costs go. That’s because you’re not dealing with expensive fixtures, materials, or plumbing. New flooring and some paint on the wall are usually all that’s required here, but err on the higher end if you’re also replacing windows or dealing with costly features like fireplaces or vaulted ceilings.
• Basem*nt – Average Cost: $20,146
  Remodeling a basem*nt can add a lot of functionality and value onto a home, but it’s going to cost you up front. Note that this average cost only applies to basem*nts that are already finished. Finishing a basem*nt from scratch will cost you anywhere from $6,500 to $18,500, with an average cost around $15,000.
• Exterior – Average Cost: $5,000 to $15,000
  It pays to invest in curb appeal, but of course, it also costs a fair deal of money. Need a roof replacement, too? Add on another $7,800 or so.

Additional costs

You might not need to worry about these home renovation costs, but if you do, here’s the range you’ll want to consider:

• • Removing walls: $300 to $10,000 (you’ll spend more depending on how many walls you’re removing and whether they’re load bearing or not)
  • Electrical rewiring: $3,000 to $20,000
  • New plumbing: $400 to $1,900

Don’t forget the wiggle room! You’ll want to add on about 20% for incidental costs and overages.

Also worth noting is that, across the board, labor is almost always going to be your biggest price factor (in a bathroom renovation, for example, it accounts for as much as 65% of what you spend). The more that you can take on yourself, the less you’re going to spend.

The Value of a Professional Opinion

The best way to estimate home renovation costs is to talk to someone who does it regularly, such as a general contractor or an interior designer. It’s these pros’ jobs to provide reliable estimates about what a renovation will cost, and their experience is incredibly valuable.

Planning on hiring a contractor or designer anyway? Get scope and cost estimates from at least three different providers. Home remodeling and renovations is a competitive industry, and you may be able to cut your costs dramatically if you shop around. On the other hand, if you’re planning a DIY renovation, make sure to identify what parts of the project will require professional assistance (for example, electrical work) and what you’ll be able to save on by doing yourself.