Kitchens and Baths. In the hottest housing markets, springing for a kitchen or bath remodel is a sure-fire investment, often returning more than 100 percent of the cost.
In conclusion, a kitchen remodel can be a significant investment, and it's important to understand which items are likely to take up the most of your budget. Appliances, cabinets, and countertops are the three most expensive items in a kitchen remodel, but they're also the most important for functionality and design.
“Most commonly, because of the heavy plumbing and electrical needs, the complexity involved with a kitchen renovation or bathroom remodel leads those spaces to be the most labor-intensive home renovations, involving the highest amount of thinking, craftsmanship, and problem solving,” says National Kitchen and Bath ...
As you plan your renovations, keep in mind that the remodeling price tag for no single room, except the kitchen, should exceed about 10% of the house's current value. Kitchen renovations are more costly and, in some cases, can exceed 15% of the home's value.
Depending on the square footage, the average cost to gut and remodel a house can be anywhere between $100,000 – $200,0004. Gut renovation cost per square foot ranges between $60 – $150 and includes new plumbing, appliances, structural improvements, a new roof and an HVAC (heating, venting, air conditioning system).
Part of determining that price of your kitchen remodel is the extent of your makeover. Your biggest cost investment for a kitchen remodel will usually be cabinets, which typically eat up 25 percent of your budget.
One of the hardest parts of a kitchen remodel project is making sure all the cabinets are in the right place, so they blend in with the existing woodwork. This is especially important when you are doing a whole kitchen revamp, so it is vital to keep your installation plan organized.
According to the National Association of Home Builders (NAHB), the kitchen is the most popular room to remodel.
The report predicts that renovation spending will drop roughly 14% from 2022 to 2023. The study projected that renovation spending would exceed $450 billion during the first quarter of 2023 but cool shortly thereafter, with owner-occupied housing stock to “grow only modestly” in 2023.
The most expensive part of a bathroom remodel is changing your bathroom layout. This is due to the amount of work required to remove, demolish, or dispose of current fixtures, which increases the labor cost of the project.
The Framing
A home's framing is its skeleton. Because so much material and skilled labor is required, this is an incredibly expensive part of building a home.
Shelving: Instead of purchasing new cabinets or refinishing your old ones, consider installing some open shelving. Shelves are inexpensive, and you can easily match them to your kitchen's style, resulting in an airy feel almost like that of a commercial kitchen.
While kitchen cabinets are the most expensive part of a kitchen remodel, there are so many factors contributing to the total cost of remodeling your kitchen. All these aspects contribute to the total kitchen remodel budget, and you need to make the right plan to make the most of your project.
The average kitchen remodel costs between $13,000 to $40,000. If you are replacing the entire kitchen, then you can expect to spend anywhere from $30,000 to $80,000.
In remodel construction, the average gross profit margin is between 34% and 42%. Now, keep in mind, the gross profit margin is not what the contractor actually takes home. Since business overhead expenses are not included in the direct cost, they must be subtracted from the gross profit.
Many professionals recommend a one year “cooling-off” period from move in date to the beginning of renovations. While this may seem like a long time, it allows you to thoroughly weigh your decisions and better understand how they will affect your daily routine in your home.
Q: Is it cheaper to renovate your house, buy a used one or build a new one? A: It's almost always less expensive to renovate an existing house than to buy used or build a new one. It's easiest to break the numbers down by square foot, keeping in mind that costs are highly variable based on location and market shifts.
That leaves around $600 per month to account for property taxes, homeowners insurance premiums and potential HOA fees to get you up to approximately $4,666 per month. So following this rule, you should be able to afford a home of about $800,000.