Your Home’s Renovation Fee: How do you figure it out?

By August 21, 2015Blog, Renovation Resources

Your home is your biggest investment, and naturally, if you want it to maintain its value, you’re going to have to renovate it periodically.

So, you meet with an interior designer — or a construction company — and they give you a quote for their services. There’s just one problem: you don’t know if the quote is too high, not high enough, or just right. So, how do you determine the right renovation fee for your home? Here’s our list of things to keep in mind before determining if you’ve been quoted a fair price:

  1. Make a list of all of the materials you need. For example, if you’re renovating your kitchen, list the amount of tile you’ll need, any appliances, the amount of drywall, etc. Be sure to take accurate measurements of the room (or of the entire home, if you’re doing a complete home remodel).
  2. After you get a complete list of the materials, get a few price quotes — don’t just settle for the first quote that was given to you. You may even want to get some of the prices yourself — many “big box” home improvement stores periodically have clearance sales that can save you hundreds of dollars!
  3. Next, calculate the amount of labor hours that will be needed to renovate the room in question. Again, be realistic, and be aware that when drywall is removed, especially in high-moisture places like kitchens and bathrooms, other problems with plumbing, mold, and faulty wiring may be uncovered, which will cause an increase in labor and materials costs.
  4. When factoring in the cost of materials, be sure to bear in mind that materials will vary in price, as well, and this variance is dependent on the quality of the materials procured. While a typical porcelain or ceramic tile in a “big box” store can be relatively inexpensive (sometimes as low at 99 cents per square foot!), a tile made from travertine or imported Italian marble can be significantly more expensive. Travertine tiles start at approximately $10 per square foot; Italian marble tiles start at double that price!
  5. When getting a quote from a contractor or designer, be sure to ask about the quality and type of materials they’ll be providing for their price as well.
  6. Once you get all the costs of the renovation together (materials and labor) that you then compare it to the price that a designer, or contractor, gives you. Again — don’t go with the first price that’s given to you. Compare a few quotes, and go with the one that provides the most reasonable price for the proper amount of work.
  7. In comparing prices, be careful of the designer or contractor giving you the lowest prices. Sometimes the cheapest is not always the best, as their experience, quality, and speed of construction may be lacking, which can cost more in the long run.
  8. To that end, too, you’ll need to set aside a contingency budget (better known as an “emergency funds” reserve) that’s equal to about 15% of your total renovation budget to account for problems that may be uncovered during the renovation process.

Contact us today to discuss your home’s renovation project.