Residential renovations involve many costs. The type of renovation, scope of the project, and the contractor doing the work all have an influence on the cost. Common expenses incurred during a typical remodel include:

• Equipment
• Furnishings 
• Labour
• Mechanical elements

However, these are not the only cost drivers in a standard residential remodelling project. Other drivers include:

Schedule

The more important it is to finish a job quickly, the more expensive the remodel may be, especially if your contractor is working around the clock. As a property owner, you may prioritize a fast turn-around. However, it’s important to take into consideration that this could drive up the cost.  

Location

Far away locations require the contractor, workers, and everyone else involved in the project to drive long distances to work and deliver materials. The more remote or difficult to reach a location is, the more expensive the remodel will be. 

Complexity

The more complex a job is, the more it will cost. A simple remodel to improve the cosmetic appearance of a space is likely to cost much less than a job that involves replacement of plumbing, electrical, and so on. 

Setting a Budget for Your Residential Remodel

As you’re determining renovation costs and establishing a budget, you’ll need to answer these questions:

• How much can you afford to pay?
• Will you need to finance?
• What’s a realistic cost for the work you want to be done?

To answer these questions, meet with several contractors and get bids from each. Talk to lenders to find out how much you’re approved to borrow and what kind of repayment schedule they’re offering.