How to Estimate Your Renovation Cost in NYC

Recently, there's been an uptick in renovation inquiries from homeowners, and we've been getting asked the same question by just about everyone… how much will my project cost? So, I figured this would be a good time to write a brief post on the topic to share how we view initial price estimates at WAKE for Residential Renovations in NYC

Acknowledging that price will vary based on the extent and quality of work provided, many architects and design professionals, like us, use the cost per square foot method in the early stages of a project to align our expectations with our clients. We use this method in two ways - by providing a price range and by using a typical forecast amount based on previous projects – both are discussed below.

Price Ranges:

Below $100p/SF - Miscellaneous work, general repairs, passable quality.
$100 - $200p/SF - Limited renovation; acceptable quality.
$200-$300p/SF - Gut renovation; good quality.
$300-$400p/SF - Gut renovation; high quality
$400+p/SF - Gut renovation; luxury

Typical Forecasts:

+/- $35,000 new bathroom, reworking plumbing and changing location or types of fixtures
+/- $75,000 new kitchen, reworking plumbing, and changing location or types of fixtures.
+/- $300,000 full gut, good quality, per floor.
+/- $400,000 full gut, good quality, per floor if turning into CONDO's
+/- $500,000 per 2000 sqft

These numbers help us set an expectation, define the project goals, scope, and brief, providing a starting point for design services. Within these numbers, we also typically discuss the difference between the project cost, hard cost, and soft costs to allow them to know where exactly their money is being spent.

Hard Costs are those related to the actual construction of the project, paying for the cost of materials and labor (T&M) from the contractor and sub-contractors.

Examples of Construction Hard Costs:

Hardware & Products
Materials
Labor/ Time for Construction Contractor & Sub-Contractor

Soft Costs are those that do not relate to the physical construction of the project. Typically, these include A&E fees (Architect & Engineering) and other expenses like lawyers, real estate transactions, sub-consultants like expediters, soil testing, and asbestos inspectors in addition to Department of Building Fees and any other management fees which are required.

Soft Costs, like hard costs, vary greatly depending on whom you're using but typically run between 12-25% of the Hard Cost and are in addition to your Hard Cost. Combined, the two contribute to the overall Project Cost.

Examples of Project Soft Costs:

Lawyer Fees for Contract Review
Building Management Fees
Department of Building Filing Fees
Expediter for Department of Building Filing
Special Inspection Fees
Interior Designer/Architect
Architect
Engineers; Structural, Mechanical, etc.

Project Cost also encompasses any expenses not defined within Hard and Soft costs that relate to the project. It is the total cost of your project.

When we talk about cost per square foot, we are typically talking about Hard Costs, so it is important to remember that soft costs and any contingency funds are excluded from the conversation.

We view our Hard Cost, Cost per Square Foot, estimates are as follows:

Miscellaneous Work & Repairs

<$100p/SF

Should your budget fall within this range, it'll be next to impossible to do a gut or complete renovation with a qualified team of professionals. This budget is good for the essentials and general repairs, not complete rehabilitations of residential buildings.

Limited Renovation - Acceptable Quality

$100-$200p-/sf

This is a decent budget for a general renovation; while it'll be hard to do a full gut, you'll be able to obtain a good overall renovation. Pushing for a larger gut renovation with this budget will limit the overall quality of the work and force you to work with suppliers like Ikea or Home Depot/ Lowes.

Gut Renovation - Good Quality

$200-$300p/SF

This is a good budget for a gut renovation and allow you to select products and goods from vendors/ suppliers you like while retaining a quality contractor and team.

Gut Renovation - High Quality

$300-$400p/SF

At these prices, you're able to pick the top of the line products and contractors with little to no compromising to stay within your project budget.

Gut Renovation - Luxury

$400+p/SF

At this price point and budget for a residential project, you're able to have all the top-of-the-line products, materials, and detailing work done by your team.

Please remember these are just rough numbers used as talking points with potential clients to align expectations. There is a lot to be said about these numbers, and everyone has a different definition of what "acceptable," "good," and "high-quality" are.

When using Forecast Numbers, we're identifying specific parts of a renovation that have been pulled out and isolated for a more natural understanding. This gives clients a way to understand targeted areas of their renovation beyond that of a median cost spread out per square foot.

The forecast numbers we typically use are the following:

Bathroom Renovations; $15,000 - $50,000
Kitchen Renovations; $30,000 - $125,000
Air Conditioning; $3,000 - $80,000
Through Wall $3,000 - $4,000 per unit
Central Air $30,000 - $80,000
Electrical Rewiring; $30,000 - $50,000
Winow Replacement; $1,000 - $2,000 per window (typical double-hung)

Forecast numbers can vary greatly in response to products used; there is a big difference between $1.90p/sf tile and $36.80p/sf, but, again, they provide a starting point for the conversation.

Knowing full well that neither method is perfect, Cost per Square Foot or Forecasting, having the discussion about cost upfront does allow us to work more closely with our clients and provide a higher level of service with fewer surprises at later stages of work. This is extremely helpful because by the time we enter construction, the client, hopefully, you, is already prepared for the expected costs are, and if planned for appropriately happy that things are coming in under budget.

We also share the following resources with our clients for independent research and encourage you to do the same if you're pursuing a project:

Please also feel free to reach out to us at wake@wake-dd.com if you've any specific questions, we're always happy to help.

Residential, blogNathan MinettMay 1, 2020