How to calculate the cost of repair, restoration and renovation of any project

The issue is keep asking: How do I estimate the average Rehabilitation costs? Well, there is no average rehab cost because there is no average rehab.

Some properties require major structural improvements; others are just lipstick in the way. Some rooms may have recently renovated kitchens, others may have kitchens from the 1950s.

But since this is such a popular topic, let’s see if we can try to make it at least (a little) doable for those new to the architecture world.

Solution

First, there are a few ways to get a price range for the work a property needs:

1. Have the general contractor inspect the property.
2. Have the home inspector give you a report and use it to create a budget.
3. Develop a square foot cost per square foot for the entire project.
4. Establish square footage costs for each transaction, such as tile and drywall.
5. Use an online calculator.
6. Ask friends for help – Recently Renovation or maybe some kind of Construction experience.

Who to work with

Of course, the best and so far The safest way, initially will Use veterans general contractor (GC) Walk around the property and throw out a rough number if necessary and / or Required repairs or improvements. this It’s certainly possible, but most contractors will expect get paidand them can’t always Fit such a small task (for them) into their schedule as there are deadlines due to hosting.

and note I use the word “veteran” when describing this GC. It will do you no good to use a new or young contractor who is fresh out of the exam room. You need someone with decades of experiencewho can throw it away You can get a semi-accurate price just by viewing the property within an hour. They must have completed dozens or hundreds of projects before they can Throw After an hour of touring the house, which they had never seen before, they got an accurate price.

notes: You can (and many do) find a good general contractor who will go to every property for/with you and always provide you with OK, real numbers. But please note that everyone – even this seasoned old GC – can and will something goes wrong sometimes. Or sometimes, Hidden surprise A house you won’t see until the demo is complete or the building inspector visits the property for the first time.

you can also Use a home inspector Gather a list of information about required repairs and defects. You will (and should) use a licensed home inspector to inspect the property and you Considering purchasing. You can do this once you have an offer accepted on the property, the property is under contract, and you are within the inspection deadline.

But they can’t and won’t give you numbers for these tasks. This is not their job. Home inspectors are experts, most people are not real construction background. They may think this opens them up to liability issues or, worse, a conflict of interest.

How to calculate costs

However, once you have this list, it’s certainly a good place to start. You can then use the network to attach a price to each item in your report. this is a wise and quite Safe method.

but what What about other improvements you might want to make, like adding a bathroom or remodeling the kitchen? Maybe you want to open up an old, claustrophobic house and transform the living room, dining room and kitchen into one great room. Now you are back to square one.

Establish square footage costs. this It will take longer, but by the time you get some work done, only Calculate and track What you pay. Tile contractors always seem His installation cost is about $5 per square foot? Does the drywaller always end up paying about $6 per square foot? These are real numbers you can trust.

you can also try arrive Contact individual submarines and See if they’ll give you a price for that square foot. Some do, but many don’t want to be bound by it.

There is even an online calculator One from the BiggerPockets website. They may work, but I warn against it arrive completely Rely on these. They can’t always explain different areas, or current price fluctuations, or sudden economic changes. But they can be very handy in helping you find a reasonably priced scope of work.

Ask people you know and trust about their recent projects. Maybe you’ll get a good price on kitchen cabinets from one friend, while another will let you know how much she paid to resurface her bathroom.

How to customize your approach

I meeting Different approaches are recommended for different sizes and types of projects. For example:

• You find a house that needs a complete makeovercorrect All the way down to the stud. This absolutely requires you to hire a GC to go to the site and Walk (watch and learn with you) and give you an approximate price. On a $150,000 remodeling project, you can’t cut 20 percent – your profit will be reduced, and it may actually turn into a loss. This is not why we are in this industry.
• You find an old, well-maintained house at a reasonable price, but nothing new or modern Has been completed Achieved 30 years later. It needed a modern kitchen, two new bathrooms, new flooring and paint, and a new roof. This could be a $45,000 job. Again, you can call the GC, or in this case, you can call the subcontractor yourself And ask about the price of each transaction. How much do cabinets cost? What about paint, tiles, flooring?
• For a small job around $10,000 that might just require paint, carpet, and new appliances, take your own measurements (very carefully) and go shopping. do not forget All fees included like Taxes, delivery, installation, etc.

This might be a reasonable use A combination of possible options until you find the most comfortable way Let you figure it out The price range you are willing to invest in.

and it It’s important to note that, as you’d expect, prices vary greatly from region to region, state to state, and even city to city within a state, IESan Diego versus Los Angeles or San Francisco, or New York versus Buffalo.

final thoughts

The more you get your hands dirty and invest some my own Work hard on this process and you’ll be able to get a better estimate of price. It’s not easy and yes you may make some mistakes able spent a lot of money. But being able to visit a home that’s about to be rehabbed and accurately calculate your construction costs is absolutely priceless. this Will set you apart from the competition and help you turn a profit – there’s a lot of money to be made be made Under repair Dangerous house!

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Notes on BiggerPockets: These are the opinions written by the author and do not necessarily represent the views of BiggerPockets.