If you’re planning a remodel, it’s likely you’ve been doing some research on how much your dream five-piece bath and new stove are going to cost you. We highly recommend doing your own research, but you should know scouring the internet can only take you so far. While you can look at reports and industry standards from many sources, you still might not have all the information you need.
This is because where your remodel is taking place matters. Your location will affect the cost.
But, don’t worry. We’re here to provide helpful information on the cost of a home remodel for Colorado residents. We hope this helps you get a better understanding of how much to budget for your project.
How Do You Calculate Renovation Budgets?
If you’re going to renovate your home, we recommend planning to spend $150 to $350 per square foot. This investment differs based on the amount of work your home needs, and the type of finishes and materials you’re investing in.
So before you even get started, finalize the maximum amount you want to spend. If your house is worth $750,000, you can’t expect to remodel all of it for $20,000. But, it is good to know your limits.
Once you have that number, lower it by 10% to account for hiccups in the remodeling process. No matter how great you, your designer, or your contractors are at remodeling, unexpected costs will come up. These “hiccups” are referred to as contingencies in the remodel world. They’re something you want to plan for rather than find yourself surprised and over budget on an unexpected expense.
Do not skip this step. A little extra planning will help you stay on budget when it’s time to remodel. If you want to reference a report for return on investment (ROI), we recommend the National Realtor Association’s Cost Remodeling page.
Determine the Purpose of Your Remodel
The purpose of your remodel is dependent on the type of home you’re remodeling. We’re not talking craftsman vs. tudor. Forever homes, first homes, or long term or short term rentals can have very different budgets and remodeling priorities. This can help you determine what you should and shouldn’t be remodeling.
If you’re remodeling your forever home, you’re able to spend as much as you want and have available. This is because you’re likely less concerned about ROI and neighborhood comparison, and more concerned with tailoring the remodel to your needs. While you’d never want to waste your money, if you don’t have to worry about resale, you can remodel how you’d like to. Forever home remodels can be less or more expensive depending on your taste and remodel scope.
If you’re remodeling your first home, or a home you’re likely to sell in a couple of years, you’ll want to consider prioritizing ROI. If you can’t afford a full remodel, some rooms have better returns than others. Prioritize the kitchen, principal bathroom, or consistent flooring throughout the home for a better return when you sell the house.
If you’re remodeling a long term rental property, do a neighborhood comparison before starting your remodel. This can help you focus on what needs remodeling, and what you should budget for first. You don’t want to do a remodel that will require a rent beyond what anyone is willing to pay in the neighborhood. It’s also a good idea to steer clear of fast changing trends, as it will make the home feel dated.
For short term rentals, consider the neighborhood comparison, ROI, and current interior design trends. Invest in aesthetics that will catch someone’s eye as they’re browsing rental sites. Also, take a look at how much you can charge per night if the property is new. This will help you determine your return on your investment by the number of nights rented.
What Should I Renovate First?
If you’re not doing a full home remodel but don’t know where to start, make a list of all your remodeling needs. Comb back through the list noting what “needs” to get done, and what would “be nice” to get done. If you can, rank your needs. Then add any niceties you have the budget for.
As we mentioned, kitchens and bathrooms have the highest return on investment. After that, consistent flooring is a great investment. If you’re looking for guidance on updating your furniture, this blog post can help you determine what to prioritize.
How Much Will Remodeling Actually Cost Me?
There are annual reports that can give you a starting point for project costs. We recommend seeking out the guidance of a professional in your area as well. The prices in nationwide reports aren’t always accurate given the wide demographic of people they survey.
These numbers are based on our experience doing furniture and home remodels in the Colorado market.
- Kitchen: 10% of the value of the home, no lower than $60,000
- Principal Bathroom: 5% home value, no less than $30,000
- Guest/Hall Bathroom: 3% of home value, no less than $20,000
- Refinishing flooring: $3 – $4 per square foot
- New Flooring: $10 – $15+ per square foot
Bedrooms, laundry rooms, and living rooms are impossible to ballpark due to their numerous variables that could affect the remodel. Give us a call if you would like some advice on a specialty room, we would love to share our experience.
Keep in mind that our projects are true remodels. We’re not painting cabinets and calling it a day. We’re elevating your home experience.
You Live and Die by Your Timeline
Remember when we told you to reduce your budget by 10% to account for hiccups? The timeline is when hiccups are most likely to occur! There is a long list of questions that you’ll need to keep in mind if you’re managing your remodel without a designer.
Questions to keep in mind that could affect your budget:
- How long will it take custom furniture to be made?
- How long does it take for permit approval (if needed)?
- How long will it take items to get delivered?
- How long will installation take?
- How long will you be living in an Airbnb?
Timeline is one of the hardest things to manage in a home remodel. If you don’t manage your timeline, your project could take longer, and you could overspend before you’re finished.
Determining Design Inspirations
Once you decide which areas you’re remodeling, your budget, and timeline constraints, you can start thinking about our favorite part– style! Before you knock down a couple walls or donate your sofa, consider your design inspiration. What’s the end product going to look like?
Start by taking note of colors, textures and styles that catch your eye. Think about how you might be able to use them in your space.
Next, think about the function of the items catching your eye. Try to determine if it will fit your lifestyle. For example, are you trying to achieve a well balanced minimalist living room for two, or a place to host parties with plenty of seating? This will help you understand things like how big of a kitchen table you need, which will affect your budget.
Determining Design Inspirations
If our design inspiration questions were hard to answer, enlist the help of an interior designer. Or, if you know what you want but don’t know how to get there, working with an interior designer can execute your dream remodel.
While we mainly touched on the financial costs of remodeling a home, there are other costs to consider, too. A remodel can be stressful. As a homeowner, you likely have emotional investments in your project. Plus, managing a big project with a full time job comes with many complications.
And, mistakes can be expensive if you don’t know what you’re doing. Head over to our homepage and download the three most expensive mistakes homeowners make when remodeling.
These are many reasons to hire an interior designer. You’ll have a professional with lots of experience managing your project. And, you’ll also have someone to shoulder the project stress with. Best of all, they will likely have impeccable taste!
We recommend talking to at least three designers before making a decision. But working with a designer will be some of the best money you could invest.
Talk to an interior designer to make your remodel a success!