How Much Should I Budget for a Philly Home Renovation?

Whether you’re buying a fixer-upper or a home that just needs a few minor upgrades, it’s always useful to have a sense of budget for the work that you want to perform in the property. Estimating costs is not easy, however, and there are two guidelines that are important to remember -- things always cost more than expected and construction always takes longer than expected.

The other factor that goes into a budget is the subjectivity aesthetics and tastes! Meaning that some budgets may call for more expensive finishes vs. someone else who is rehabbing their first home and just need function over form and high design.

A lot of homebuyers in Philly today like to put their personal touch on a home they buy, whether that be to renovate a kitchen, a bath, floors, or the whole property from top to bottom. Let’s look at some of the different ranges and how much to budget for each.

What is a gut renovation?

Gut renovation is a term that is used loosely in describing a very thorough rehab project. It can mean rebuilding a home almost completely from the inside out. 

Sometimes you’ll also hear the term "down to the studs" which means that everything was ripped out of a property, including the walls, only leaving floor boards or even just the joists. This is optimal for a complete rebuild as literally everything else in the home will be new. This also takes surprises out of the project, which means it’s easier to forecast costs. Surprises are often expensive mistakes! 

Like with all of these categories, the answer is "it depends" to the question of "how much will it cost?". But a loose guideline is to budget approximately $75 - $100 per square foot for "hard costs" depending on the level and quality that you’re going for. Hard costs are materials, lumber, drywall, appliances, fixtures, etc. 

Tack on another 20% for labor and contractor fees. Then there’s any architectural, permitting, license fees, insurance, interest on your mortgage, etc.

This can easily bump your budget up to $100 - $150 per square foot, or even more if you’re putting in super high-end finishes (again, depending on how many square feet you’re renovating). So, if your home is 1,500 square feet, a gut reno might cost at least $150,000 up to $200,000. Don’t forget to have a contingency line item in the budget, meaning, it’d be safe to have at least an extra $25,000- $50,000 saved up, just in case something goes wrong. After all, you don’t want a half-finished project -- once you start, you need to finish!

Renovation and construction projects invariably cost more and take longer than expected. Also, don’t forget you’ll still have to pay your mortgage (if there is one), taxes and insurance while you renovate, so add that to the budget!

Average budget for a home renovation in Philadelphia

Most Philadelphia homebuyers that are looking to do a simple renovation set aside $25,000 - $50,000. That is usually a good budget to upgrade a kitchen, a bathroom, and do some cosmetic touches throughout such as painting and sanding and maybe refinishing floors. 

Think of a simple renovation as the things you want and can afford to do immediately after buying a home. The rest you can complete over time as money is more readily available.

Kitchen 

No other space in the house is as important and valuable as the kitchen. Buyers love to have a luxurious kitchen with top-of-the-line appliances, tons of cabinetry for all their storage needs, an island with seating for four, expansive granite or quartz countertops, etc. A nice kitchen immediately boosts the value of your home  and is just a nice feature to have as we all use our kitchens multiple times per day!

Pricing varies widely, depending on cabinetry, caliber of appliances, backsplash designs and materials, the grade quality of stone/countertops and tiling, venting, electrical upgrades, plumbing work, etc. 

The sky’s the limit here but figure you’ll need at least $15,000 - $20,000 to do a very basic kitchen. That said, you can spend $15,000 on appliances alone, so make sure to budget accordingly and work with a professional to ensure you stay within the budget as a kitchen rehab can get pricey if things are not kept on track.

Are you keeping it simple or creating a chef’s kitchen? 

Bathroom

A bathroom can range from $7,000 for a simple powder room all the way up to $30,000 or even more for a luxe, spa-like master bathroom with a rain/steam shower, oversized soaking tub, high end marble and radiant floors.

Floors 

New floors or a professional restoration of historic floors can elevate a home’s value instantly. This project is best undertaken when the home is vacant, as obviously nothing can be on the floors in order for the work to be completed. Also, if refinishing existing hardwood floors, a lot of dust will be generated by sanding so it’s best to do when no one is living in the property.

New hardwoods can cost anywhere from $4-10 per foot just for the materials depending on the quality you choose. Installation might run an extra $4-8 per foot for labor. Also, in order to do floors properly, moulding on the walls will likely need to be removed and then reinstalled with touch-up painting as well.

So, for a home of 1,000 feet of hardwood flooring, you might expect to budget around $8,000 - $18,000 or so for flooring depending on what quality of product you choose.

To refinish floors, a technician will come in and sand the floors down and usually stain and/or add a layer of polyurethane to the floors to seal them. This is usually a less expensive option than putting in brand new floors. Figure $3-8 per foot for labor and materials. So, for 1,000 feet of hardwood flooring, it could be somewhere between $3,000 - $8,000.

Finishing a basement in Philadelphia

Many basements in Philly have low ceilings and poor light but that doesn’t mean you can’t try to finish the space off to improve it and make it more usable and hence more valuable. 

Clearly, basements with more square footage and higher ceilings are better suited than small basements with low ceilings so use your judgment and study this before you buy a home if it’s an important project to you.

Basements are typically damp, so it’s important to take any moisture out by installing a dehumidifier -- preferably one that automatically pumps the excess water into the drain pipe. This will prevent that "basement smell" and help keep moisture related growth away (I’m talking about you, spore-like growths!). Water may be a larger issue necessitating extra drainage (hello French drain!). This can get expensive.

Once the moisture issue is solved, adding ceramic tile or vinyl flooring to the basement will look great if the concrete floor is level and plumb. If it’s not, you’ll need to level the floor with self-leveling underlayment. 

Next, framing and drywalling will help hide the mechanicals and ensure a nice space for either storage or extra living room. You may want to budget extra for a bathroom -- maybe you will even have a shower down there. All these things add cost, obviously, so best to plan it out with a good contractor and then make sure to have an extra contingency line item in the budget.

Also, if you need an extra egress/window for the basement, that can add another $5,000 or even $10,000.

It’s tough to estimate a total for a standard Philly basement as there are many variables and some basements are better suited to being finished/rehabbed than others, but a basic project could be start at about $20,000. Like a kitchen, the sky’s the limit here so don’t be surprised if your quote is for $50,000 or even more.

Don’t assume you can finish every basement, so try to understand if this is a feasible option before buying a home. Speak to a licensed and experienced contractor -- he or she is worth their weight in gold!

Planning for your renovation

Regardless of which project you take on, make sure you keep the scope of work appropriate for the level of home, unless you have money to spend and plan to use the upgrades for a long, long time. Meaning, you may not get the value back if you sell if you overdo it and need to sell in a few years.