If you’re like me, a house flipper looking for a deal, one of the first questions you’ll ask is: how much does it cost to renovate a house?
And for good reason. Without a thorough understanding of how much does it cost to renovate a house, you can’t know whether your flip is going to be a money-maker or a money-pit.
Home Renovation Items & Their Cost
How much does it cost to renovate a house?
Well, here is a list of some of the most common expenses you may incur.
Exterior Renovations
- Roof Replacement: You can easily see spending between $5,000 and $15,000 on a roof for a house.
- Siding and Paint: New siding runs anywhere from $7,000 to $16,000 while a fresh coat of paint runs about $2,000 to $5,000.
Interior Renovations
- Kitchen Remodel: A mid-range remodel typically costs between $20,000 and $50,000. High-end upgrades carry big-ticket prices.
- Bathroom Remodel: Remodel your bathroom for $10,000 to $25,000, depending on the fixtures and finishes selected.
- Flooring: New floors throughout can cost $5,000 to $15,000, depending on the materials you choose.
Structural and System Upgrades
- Electrical and Plumbing: Upgrading electrical and plumbing systems can easily add an additional $10,000 to $30,000 onto your budget.
- HVAC System: Replacing or upgrading the HVAC system typically costs $5,000 to $10,000.
Permits and Inspections
- Permits: Plan on spending between $1,000 and $5,000 on permits depending on the scale of your project and the zoning laws of your area.
- Inspections: Budget around $500 to $1,500 for necessary inspections throughout the renovation process. Permits and inspections are crucial expenses that contribute to how much does it cost to renovate a house.
What is the Most Expensive Part of Renovating a Home?
Now that we’ve broken down exterior, interior, and structural renovations, you may still be wondering … what’s the most expensive part of renovating a house?
Location
Depending on where you buy, how much does it cost to renovate a house can vary widely — in California or New York, you might be paying premium prices for labor and materials, whereas other markets are much more affordable, and you could save thousands.
Scope of Work
Are you making various cosmetic modifications, or do you need to make a complete overhaul? For example, a kitchen refurbishment could cost $10,000 while knocking down a wall could cost $1,000. It depends on how much does it cost to renovate a house.
Quality of Materials
Decisions about materials can have a big impact on how much does it cost to renovate a house—luxury finishes and one-of-a-kind details will cost more, while budget-friendly options will help keep the cost down.
Contractor vs. DIY
Imagine that you have hired a contractor.
That will add to your renovation expenses, but it will also save you time and reduce the chance of errors.
By contrast, doing some of the work yourself will save money—if you know what you are doing.
The decision to DIY or hire professionals is a crucial issue when it comes to how much does it cost to renovate a house.
How To Save Money Renovating a Home
Whether you’re a first time flipper or you have several under your belt, you’re probably looking for ways to save money on your next house flip.
How can you do that?
Here are a tips on renovations should help put your mind at ease.
Set a Budget and Stick to It
Before you can start swinging hammers, you need to set a budget for your renovation and try your best to keep to it, knowing how much does it cost to renovate a house.
Shop Around for Materials
Don’t accept the first price you see.
Shop around for materials and fixtures and buy in volume to control how much does it cost to renovate a house.
Consider Phased Renovations
If your budget is tight or in general you have limited funds, consider phasing your renovations over time to manage how much does it cost to renovate a house.
First, do the most important updates and then do other projects as your budget allows.
The Bottom Line: How Much Does it Cost To Renovate a Home
I’ve found from my own personal experience that there’s no one size fits all answer to how much it costs to renovate a house.
It all depends on the size of the house, the scope of the project, and your ability to find ways to save costs.
If you’re looking for additional house flipping resources, check out the best house flipping shows, our guide to house flipping loans, and our favorite house flipping books.
