How Much Does a Full Home Renovation Cost?

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Nowadays, homeowners tend to want to renovate their homes more frequently because people are spending more and more time in their homes, and therefore, they want to make their spaces functional, modern, and beautiful.

The cost to remodel a home can vary greatly, starting in the tens of thousands of dollars; and whether the funds come from a home renovation loan, a home equity loan, or your own savings, it is extremely important to be able to estimate the costs of the renovation project before starting it.

In this article, we will see what the average costs of renovating a home are.

So, if you are planning a renovation and do not have the assistance of a home renovation company, the information provided here will be very useful.

Let’s get started!

How Much Does It Cost to Renovate a Home?

Of course, the cost of renovating a home can involve many things.

It can be a small, light renovation, such as painting the kitchen of a different color, to a more complex one, such as changing all the floors or modifying the roof.

Many homeowners choose to renovate their homes not only for a personal and tasteful reasons but also to increase the value of their property.

As it happens, homes with renovated and modern bathrooms and kitchens offer the best return on investment.

Estimating renovation costs is difficult because they depend on many factors, such as the type of material and appliances used or the house’s condition.

According to estimates made by home renovation companies, an average of $10 to $60 per square foot can be spent for a complete renovation.

However, if you choose to purchase high-end materials, the value can be as high as $150 per square foot.

Renovations generally refer to an aesthetic improvement, but a complete remodel may involve major structural changes.

A complete renovation can mean tearing down the house and starting over, tearing down some walls and enlarging the spaces, or expanding by building new rooms.

In this sense, it is no longer a home improvement but a more complex remodeling, which implies other costs per square foot. Here are some estimates:

  • A relatively small remodel can cost between $25,000 and $45,000.
  • A medium remodel, including the kitchen and bathroom, can cost between $46,000 and $75,000.
  • A large remodel, including foundation, roof, and sewer repair can cost $76,000 or more.

Another important aspect to remember is that if you do not plan to do the remodeling yourself, you should consider that an additional 10% to 15% of the cost will be added to the contractor’s costs.

Therefore, if you require an expert to provide you with home improvement solutions, you should consider their fees in the total cost.

Factors That Influence the Cost of Remodeling a House

There are several aspects that must be considered when calculating a budget for a home improvement or remodeling project since they directly influence its value. Let’s see what they are.

Permits

If large-scale renovations or adding additional rooms are involved, it is necessary to apply for building permits.

In that case, they may involve an expense of between $400 and $1,800.

It is important to note that these permits should only be obtained for major renovations. Replacing floors or repainting rooms and the house does not require permits.

The Age of the Home

Newer homes are usually in better condition than older homes and are built to current building codes.

When homes are very old, they tend to have old wiring, which is no longer up to code.

Therefore, these homes often require replacing all electrical wiring, which means extra costs for remodeling.

On the other hand, a modern home built in the 2000s will have the proper wiring and will not require repairs, which means less cost.

The Condition of the Home

The condition of the home also plays a key role.

Remodeling a home whose foundation is strong and in good condition is much cheaper and easier than remodeling a home whose foundation is in poor condition and requires reconditioning.

The difference can be tens of thousands of dollars.

Hiring an Architect

If you require the services of a professional architect, contractor, or designer, it can cost between $125 and $250 per hour.

Labor

In general, large remodeling projects require hiring labor, which means paying for the labor hours of the builders or any other worker who will be in charge of carrying out the project.

Labor costs are constantly rising nowadays due to a shortage of skilled trades. This means that there are few electricians, plumbers, gas fitters, etc., which means that labor has become more expensive.

In addition, labor costs include not only workers’ fees but also insurance.

Code Regulations

This is a very important aspect, as local building regulations can greatly impact the cost of a home renovation.

Depending on the home’s location, code requirements can cause costs to vary greatly from place to place.

For example, depending on the city you are in, it may take twice as long for an electrician to perform the same task due to the code requirements of that location.

However, there is no need to consider the code regulations when it comes to small improvements.

These should only be considered in case of major renovations, which can increase the labor costs because paperwork and requirements can delay the remodeling, causing the whole process to take more days.

Cost of Materials

Materials are also constantly increasing in price, becoming more and more expensive.

One of the reasons for this is that the companies that provide these supplies have had to discontinue production during the years of economic downturn.

However, the cost of the materials is one of the least relevant aspects of all that we have mentioned, unlike what most people believe.

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