After forking out the cash to buy a new home, it can be hard to fathom the potential costs required to gut and renovate it. Purchasing a fixer-upper can be exciting but it also means a lot of updates will need to be made eventually, which requires a high level of commitment from you and your family.
If you purchase a fixer-upper, it is likely you are looking to make minor to extreme renovations instead of knocking down and rebuilding. Before taking the plunge, it’s important to know what you will be getting into prior to signing the lease.
The exact price tag associated with gutting a home will depend on its square footage, the region it is located in, and how much work needs to be done. You will want to do research on the value of homes in the area before committing to a renovation, as it may be more profitable in the end for you to knock down and rebuild.
If you purchase a home with the intention of gutting it, include that in your budget for what you are willing to shell out on a home. For example, if your maximum spend is $500,000 and the home you want to buy needs a lot of work, you should aim to pay $400,000 for the house so you can set aside $100,000 to gut the place.
One of the most common gut jobs is a kitchen reno. This will usually run you anywhere from $25,000 to $50,000 depending on the fixtures and finishes chosen and if any high-end materials are used. Gutting your bathroom(s) typically costs between $9,000 and $20,000 but could be more expensive if you plan on adding extravagant spa like touches or a mirror TV.
Structural changes to the house such as a new roof or knocking down walls are often quite expensive and can run anywhere from $20,000 to $50,000 depending on the amount of alterations being made and the materials used. With old homes, it is advantageous to replace old windows and frames to help you save money on energy bills in the future. Depending on the quality and quantity of the windows, this could cost up to $20,000.
Ripping up old carpet and flooring is an easy way to give your home a facelift. Depending on the square footage, new floors can cost anywhere from $2,000 to $10,000. Your budget should also include the cost of a general contractor, unless you plan to do the renovations without assistance. They usually charge anywhere from 10% to 15% of the project’s total budget.
Rebuilding can actually end up costing you less money than gutting your house entirely. The cost of the job usually depends on the size of your home. For smaller single-storey homes, the total cost for demolition and rebuild can be anywhere from $44,000 to $190,000 and for larger homes it could run you up to $600,000.
That being said, it’s important to have a general idea of exactly what kind of changes and alterations you are looking to make to your home before committing to a rebuild. You will also want to consider the history of your home and the irreplaceable features that come with it. While a rebuild may make more sense, detailed crown mouldings and antique fireplaces likely won’t be included in the new plans.
Considering knocking down and rebuilding your home? We’ve got you covered. Discover your options and view our knockdown rebuild packages.
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