Don’t Shoot The Messenger – Please: The Truth About What Construction Costs.
I still remember as if it were yesterday – an early spring afternoon. The office windows were open, the sun was shining and the Earth was once again stirring with life, verve and promise. It was a time of hope, rebirth and infinite possibilities. A time it was, and what a time it was, it was…
This bucolic bliss was unfortunately disrupted by a ringing office phone. It happened to be a very nice woman in Bethesda, who wanted to expand her kitchen and add a new master bedroom suite at the rear of her 1930’s colonial. We chatted for a while about what she wanted to do. She expressed boundless excitement at the prospect of her new granite kitchen countertops, stainless steel appliances, and the new skylights directly above the oversize whirlpool tub, in her palatial, new master bath. Turns out she and her husband had purchased the house only a few years before, and had been dreaming of this project ever since their closing. To make this story even more heart-breaking, I had never spoken with a client more eager to work with us. She had been to our website and had absolutely fallen in love with our portfolio.
I know what you’re asking – what’s so “heart-breaking” about that?
I asked her next what sort of budget they would have to build it. “About fifty thousand,” she replied.
I knew at that moment that this project was going nowhere. And aside from the disappointment that this nice woman would not be our client, I felt terrible that I would have to be the one to dash her hopes. I knew immediately that $50K just wouldn’t do it. In fact, it wouldn’t even cover the cost of the new square footage necessary. Needless to say, she was disappointed.
I wish that I could say that this was an isolated incident, but, in truth, it probably happens about once a month. And it all points to one obvious conclusion: Most people new to the building process just don’t have a clear concept of what construction costs.
So, for all of you dreamers out there, who are hoping to renovate your home, add on, or start from scratch, this post is intended to give you some ideas about general construction costs. At the very least, this should help you know whether or not your in the ballpark before becoming emotionally invested.
For starters, when our office begins to compile a construction budget, we look at a few things: total new square footage and total renovated square footage, kitchen amenities, number of bathrooms and bathroom amenities. These items typically comprise the lion’s share of just about any construction budget.
Unfortunately, many practitioners will not separate these items, and instead offer a blanket estimate based on total square footage multiplied by an average per square footage cost. This is generally useless, as it offers the client no concept of what individual items cost, or the quality of those items, and therefore gives them no real opportunity to use the estimate as a tool to prioritize. So, let’s break things down.
Note to reader: All construction costs, like politics, are local. The numbers listed are based on what we’ve seen for the DC metropolitan area, and are not necessarily indicative of costs in other parts of the country. My in-laws, for instance, who live in Buffalo, could have done the aforementioned work for the aforementioned $50K, and still had enough left over for a European vacation and a private concert from Chris Brown. Enough said.
Firstly, I’m sure this will come as no shock, but renovated square footage is cheaper than new square footage. We typically estimate renovated square footage at about $90-$120/square foot (figure a little less for basement square footage) and new square footage in the $195-$275/square foot range. To explain the range in square footage costs, it’s very much like shopping at Costco – the more you buy the cheaper it is. The “unit price” of a small project of 300 square feet or less will be significantly more expensive than a larger project of 1,000 square feet or more.
Next, you have to account for the cost of pricey spaces like kitchens and bathrooms. The numbers above are only to estimate the cost of the space itself. And when you think about it, there are a lot of things that go into these spaces. Every kitchen needs cabinetry, countertops and backsplashes, appliances and electrical rough-ins, plumbing fixtures and rough-ins, finishes and lighting. It’s a lot of stuff. So, here are some general rules of thumb for budgeting purposes:
-Cabinetry will most likely account for the majority of the cost for your new kitchen. However, there is a wide range of cost and quality – you can spend $5,000 or $50,000. It just depends on your budget and priorities. Most people will elect to spend a little more on cabinetry because it’s not the sort of thing you want to replace often. For quality upper mid-grade cabinetry you should probably budget anywhere from $15,000 to $24,000 in an average size kitchen.
-The next big-ticket item will most likely be your appliances. Again, there’s a range. It’s dependent on quality and amenities. You can outfit a kitchen for $5,000 or $45,000. Quality upper mid-grade appliances for a basic kitchen containing a refrigerator, double wall oven, cooktop and exhaust system, dishwasher, microwave and garbage disposal will probably cost around $10,000. Adding amenities like instant hots, warming drawers, etc. would obviously cost more.
-On top of these costs, there are lots of little things that, while they are relatively inexpensive individually, could add up to around another $10,000. These include electrical rough-ins, plumbing rough-ins, plumbing fixtures and fittings, countertops and backsplashes, finishes and lighting.
-Add about 5K for granite countertops.
private residence – bethesda, md
Here are some budgeting guidelines for bathrooms:
-No real surprise – your largest expenses will be for plumbing fixtures and rough-ins. Generally, a plumbing rough in will cost about $1,000 per fixture. So, if you’re outfitting a master bath with two sinks, a shower, a tub and a toilet, you should figure about $5,000 for rough-ins. The expense of plumbing fixtures and fittings will of course vary with quality and the amenities demanded by the space and owner’s preferences. Quality mid-grade fixtures and fittings could cost about $1,600 for a powder room (sink, faucet and toilet), and about $5,500 for a master bath containing the items listed above.
-However, this is only about half the cost of outfitting the space. As with kitchen spaces, there are lots of additional items of varying importance and expense that go into a bathroom space. Like kitchens, you have cabinets and countertops, finishes, electric rough-in(s), lighting, but you also have mirrors, medicine cabinets, ceramic tile (expense and coverage area can greatly effect the cost of a bathroom), toilet paper holders, towel bars, perhaps shower doors. As a very general rule of thumb, you can take the estimated cost of your fixtures and fittings (based on the info above) and multiply it by two for a nice bathroom, and by two and a half times for a nicer bathroom. This should give you an idea of the total cost.
-Add about 1K for granite countertops.
private residence – bethesda, md
So, that’s the big stuff that most home additions and renovations will require in some form. Below are some other common amenities and general costs.
-Wood decks: about $35.00/sf
-Hardscape patio: about $45.00/sf
-Screened-in porch: about $135/sf
-Open porch: about $115/sf
-Gas fireplace: about $6,000
-Masonry fireplace: about $13,000
-Skylights: about $1,450/ea.
-Recessed lighting: about $2 -3,000/room.
So, there you have it. While this information is neither fool-proof nor exhaustive – you can spend a lot less or a lot more – it should be enough to give you a good idea whether or not your plans are realistic. If you have specific questions, please feel free to post a comment or you can e-mail questions to firstname.lastname@example.org.
Some other tips:
If you’re considering the purchase of a home, and you know ahead of time that you’ll want to do some significant work, do yourself a favor and discuss your ideas with a licensed architect before putting in an offer. Because of financial reasons, zoning restrictions, or any other number of factors, you may not be able to do what you desire with a specific property. Any architect that’s worth his/her salt will meet with you at the property for free, and offer advice and approximate constructions costs to make your dream a reality. Taking this extra step will help you make an informed decision about a property.
However, be aware that while an architect is all too happy to meet with you and offer free consultation, it’s only because it’s a great opportunity to market the firm and meet a potential client. And unfortunately, some architects, like businesspeople in any other field, may not always be the most upfront or straightforward when trying to win your business.
Beware of architects who offer their services as a straight percentage of construction costs. Some of these architects have a vested interest in providing preliminary construction budgets that are far too low to do the work. Their hope is that the budget estimate will entice a client into signing a contract, and by the time the bids come in, it’s too late. The client is already committed and unhappy because they have to pay more than they expected to build the project. And, to add insult to injury, they have to pay the architect more as well, because his/her fee is based on a percentage of the construction costs. Those who purposefully and unethically mislead potential clients in this manner hurt the image of the profession and its practitioners as a whole.
For this reason, always demand a not-to-exceed fee from any architect with whom you’re considering working. This eliminates any financial incentive to offer less than honest construction estimates. If they refuse, or give some song and dance about why they can’t do this for you, do yourself a favor and move on.