As you can imagine, “what does it cost to renovate a custom home?” is a very complicated question to answer. There are a variety of factors that influence the potential cost of your renovation, many of which are detailed in the next section of this blog post.
The most important recipe for success is to build your team (Architect, Builder, and Interior Designer) from day one of the process so that all three partners will collaborate to ensure your renovation scope and design fits your family’s desired budget.
In this blog post, we will dive into:
Custom renovation costs will vary significantly from home to home, depending on the following:
The very first step you’ll need to tackle is to figure out a clear budget range to devote to your home renovation. Notice we mentioned budget RANGE. You’ll want to start this process with a budget number in mind that is LOWER than what you can actually spend on your renovation when all is said and done. The hard truth is that remodeling a home inevitably uncovers unforeseen conditions and challenges once you begin opening up walls, so you’ll want to reserve some of your all-in budget as contingency. The lower end of your budget is what you’ll build your renovation scope around with your custom builder. This will make the entire process smoother and less stressful for you, knowing that you have a bit of a buffer to rely on in case something comes up, or you want to splurge on a finish selection that you didn’t expect.
The next step to take to achieve a renovation that fits within your budget is to meet with a highly-qualified custom builder like us to discuss your project goals in depth. At this initial walk-through at your home, be prepared to share your vision by bringing:
If your builder has a long history of remodeling custom homes in your city, they should be able to let you know if the renovation you envision is possible within your desired budget. They should also be able to connect you with architect / interior designer candidates who are well-suited to achieve the specific goals you have for your future home.
Before nailing down your final renovation scope and building a budget, there are a lot of unknowns you’ll want to explore first.
For example, if your renovation wish list includes any structural changes, have your builder cut some small holes into the drywall in strategic locations in order to determine whether the framing behind the walls is load-bearing. If there is evidence of water damage present in your home, take the time to figure out the true source of the problem before beginning your project.
If you are renovating an old home, your builder will need to proactively explore how each of the updates on your wish list will affect the overall performance of your home. We work with a building performance expert on each of our renovations to ensure that the scope, means, and methods that we plan to use will not negatively impact energy efficiency, comfort, air quality, health, and durability of the house.
Once you have a renovation scope fleshed out, your custom builder will meet with trades at your home to walk them through what their specific work list entails. Over the next couple of weeks, your builder should receive quotes from all subcontractors and vet them for comprehensiveness. They will use these quotes, along with their expertise, to build a detailed renovation budget for your home. As you go through the planning and pre-construction phases, your custom builder should continually revise this preliminary budget with each new decision and selection so that by the time you’re ready to begin construction, your budget is as thorough and accurate as possible.
Ask your custom builder to walk you through the budget in person. Use this meeting to understand the assumptions they’ve made that have influenced each line item and to discuss the many options that are available to you in order to shape the budget further.
Ask questions like:
Your builder should give you and your interior designer a detailed selections schedule during the design phase. Following it closely ensures materials arrive on time and trades can stay on track. Falling behind can create construction delays, cause mistakes that require costly rework, and lead to budget busts.
You will want to work very closely with your interior designer to make sure your material selections are on budget and do not have a very long lead time that could cause schedule delays.
Making changes mid-construction is the quickest way to derail your timeline and your budget. That’s why it's essential to finalize as much as you can during the architectural design phase before demolition takes place.
Take the time upfront to prioritize needs vs. wants, understand your budget, and lean on your custom builder for guidance. If you want to splurge in one area, look for ways to trim costs elsewhere, with your builder’s help.
Curious how long it takes to renovate a custom home? Visit our previous blog post here.
Although the question of “what does it cost to renovate a custom home?” is difficult to answer, we hope this blog post has been helpful to you. Both in understanding the many factors that influence the potential cost of your renovation and in understanding how to minimize potential budget busts.
As you proceed with your custom home renovation journey, remember to lean on your custom builder for expertise and guidance. Part of their role during all phases of your project is to be your trusted advisor, and they should treat that charge with the utmost care.