People have many reasons for renovating a home. It may be that they just purchased a fixer-upper, need more square footage due to the birth of children, or desire a downstairs primary bedroom later in life.
Renovations may range from redoing a small bathroom or remodeling a kitchen to adding an entire floor or wing. Whatever the reason, homeowners want the job done right with a company they can trust to deliver quality work and accurate estimates.
“People will often price out the cost of the big materials, but they forget about lots of other things,” says Michael Anschel, the founder and owner of OA Design+build+architecture. And all of those other things can add up quickly.
“There are all of the in-between hardware costs (wire, pipe, fasteners, connections), the labor to put them all together, and the labor to acquire all of the parts,” he says. “Then, there are the tools needed to connect the parts or install the object, the disposables (blades, bits, tape, floor protection, rags, glue, etc.), and the maintenance of the tools.”
Other costs include the vehicles and related costs, the time to travel to and from a job, and the time to set up (haul the tools in from the vehicle). These are only the tip of the iceberg.
These are costs people need to consider when requesting an estimate. One of the most frustrating things for a homeowner is having to increase their budget again and again.
“The biggest way to avoid cost overruns and surprises is to go through a thorough design process,” says Michael. “If you don't have full drawings and specifications, contractors are just guessing, and the cost will change either just before construction or during construction. So pay to have this done, and then send it out for a quote, and you can get accurate pricing for the project.”
One thing that OA does to stand out in the industry is to be fully transparent in its pricing. “We let our clients see all of the actual costs from the lumber yard, from the trade partners, from everyone and everything.” None of these are marked up for a profit.
The client can see everything that goes into the project, as well as what OA hopes to make on it. “This is actually a lot less than they think,” he says. “On a $100,000 project that spans 8-10 weeks, we might be hoping to make an $18,000 profit, which doesn't sound wildly unreasonable.” By being transparent, if the client wishes to reduce the cost, they may then choose more affordable materials or to alter the scope.
Of course, just like in other industries, prices have increased significantly. “Over the last 12 years, we have seen an explosion in cost for several reasons. We have a huge labor shortage in the trades, and so they demand significantly higher wages. Steel and drywall went up about 600%, and we also saw lumber prices spike.”
Due to these higher costs, some homeowners are scaling down on which rooms to renovate. Michael advises choosing the room that's not working for you rather than basing it on return on investment.
“Many people look at their homes as a commodity, when they should be looking at them as something that meets their needs and lifestyle. One of the things that I really love about the Twin Cities is how our clients love their community. They love their neighborhoods and want their house to be a space they enjoy being in.”
Even if a home needs a complete overhaul, it’s often cheaper than building new.
“Up until around $950,000, remodeling is probably the way to go,” he says. “We have a house that is in a great location but is too small and was remodeled previously on the cheap. We’re going to gut the inside, and put on a two-story addition. It'll basically be a brand-new energy efficient house with beautiful locally made cabinetry and healthy finishes.. To build that house from scratch, if we took the extra step to tear it down and frame it all up, it would easily be $1.5 million.”
To learn more and find out how you can make your house work for you, visit OADesignBuild.com.
What does a project cost?
Remodeling Interior:
Bathroom $85-130K
Kitchen $100- 250K
Basement $170K – basic finish. Add $70 – 100K for bathroom. Add $30 - $60K for a wet bar.
Remodeling Addition: Foundation type matters!
Small Room without plumbing: $140K + (mudroom, sunroom)
Small room with full foundation & crawlspace for plumbing $210K + cost of room ($70K + bathroom, 80K+ kitchen.)
Basement finished: $170K - $250K for basic finish with drain tile. (Add more for bath, bar, kitchen.)
Second story: $330K +
New construction:
350K – 550K + per square feet (psf) (Very custom can exceed $1000K psf)
Kitchens, bathrooms, mechanical systems are the most expensive parts. A smaller home still has those costs, so the cost psf goes up)
Basement finished: $170K - $250K for basic finish with drain tile. (Add more for bath, bar, kitchen.) Second story: $330K +