Total Makeover: What’s the Cost of Gutting a Home and Remodeling?

Cost of home gutting and remodeling

The cost of gutting and renovating your home can vary quite a bit depending on the size of the house, the finishes you choose, and the scope and extent of the project. But to give you a ballpark idea, here are a few estimates from trusted sources around the web:

HomeGuide

Average gut and remodel cost: $100,000 to $200,000
Average cost per square foot to remodel: $15-$60
Low and high end remodel range: $15,000-$200,000+
Methodology: HomeGuide builds its estimates from real hiring patterns across its network of over 1,000,000 homeowners and professionals. With access to 50,000+ local businesses and millions of completed jobs each year, it reflects what projects actually cost in the real world.

Angi

Average cost per square foot to remodel: $15 to $60

Low and high end remodel range: $3,000-$190,000
Methodology: Angi gathers its pricing data by surveying over 10,000 real customers about what they actually spent on home projects. It then combines that with research from trusted sources like the U.S. Bureau of Labor Statistics, academic studies, market reports, and industry experts to make sure its cost estimates reflect real-world pricing.

Thumbtack

Average gut and remodel cost: $6,800-$42,000

Methodology: Thumbtack offers pricing insights based on millions of service estimates and real project requests across its platform. With hundreds of thousands of pros and nearly 90 million projects started, it reflects what people actually pay for services in the real world.

Andrew Holmes, VP of Construction for award-winning construction firm Blockhouse Residential, suggests homeowners price out the gutting and renovation separately. 

“I always tell my clients the best way to do this is to demo the entire project first, and then construct the scope and budget of the renovation,” Holmes says. “Otherwise, you can spend a lot of money and time planning and then open up the walls to find that you’re stuck with $30,000 in structural repairs. Then your budget is blown.”

Total house makeover: A real-life example

Holmes shared a proposal for a complete remodel of a 3,750 square foot home where his firm did most of the labor, but the buyer saved some costs sourcing appliances and hardware:

Cost estimates for each major house component

Now that we’ve covered the big-picture costs, let’s break things down a bit more. Every part of a full home renovation comes with its own price range, and those can vary a lot depending on scope and finishes. Here’s a closer look at what you can expect to spend on each major component of the project:

• Exterior home improvement: Remodeling the exterior of your home and enhancing curb appeal costs an average of $10,500. This includes projects like replacing the siding and upgrading your landscaping. 
• Floor plan update: Expect to pay between $750 and $3,000+ to improve the flow of your home. You’ll need to hire a structural engineer, which costs around $350 to $900, to confirm which walls are load-bearing.
• Kitchen remodel: Giving your kitchen a makeover can cost between $10,000 and $130,000, depending on the scale of the project. The average range is between $14,588 and $41,550.
• Bathroom remodel: For a brand new bathroom, you can expect to pay around $2,500 to $30,000 on average for a renovation, though costs can be as high as $80,000 to add a completely new one.
• Living room remodel: To revamp the living room, you may need to shell out $8,000 on average, which includes painting walls and ceiling, adding storage, and upgrading window treatments.
• Bedroom remodel: Remodeling your home’s primary bedroom will cost you $12,000 and $28,000, depending on the size of the space, the materials you choose, and the extent of the updates.
• Basement remodel: You’ll pay an average of $22,877 to transform your basement from storage and laundry to a finished space.
• Roof replacement: A full home renovation is rarely complete without the cherry on top: a new roof. This will cost between $5,900 and $13,367, depending on the size of the roof and your material selection.
• HVAC installation: Adding central air to your home can increase its value. If it’s a new installation, expect to pay between $5,000 and $12,500. If you’re replacing your existing for more energy-efficient models, you’ll usually spend about $3,300 to $16,000 on the units, plus roughly $1,500 for installation.
• Permits: Before you start anything, you’ll need permits for projects. Building permits can run anywhere between $500 to $2,500, depending on where you live.

After reviewing these cost estimates, you may be wondering: Is it cheaper to gut a house and renovate, or completely rebuild?

At a high level, it’ll typically cost you less to gut and renovate your home than build it from scratch. According to HomeGuide, building a house typically runs between $350,000 and $800,000 on average, and that doesn’t include the cost of the land or site prep. The typical home renovation on the high end will still cost less than building from scratch at the low end.

But it’s not guaranteed that renovating an existing structure will cost any less. Unexpected problems, specialty projects and features, and pricey add-ons can quickly push your budget into “new build” territory if you’re not paying attention.

Key budgeting factors to consider

When you’re kicking off a renovation, it’s easy to focus on the fun part, like picturing a new kitchen or a dream laundry room. But don’t ignore the less exciting elements, because those behind-the-scenes steps can really impact your budget. They’re not as fun as picking out Carrara marble, but they can make a big difference in what you end up spending.

“Something that I try to express to everybody is regardless of the scope of the project, try to take your emotions out of it as much as possible. You have to go through the steps and complete them. So if step one is 95% complete, you can’t move onto step two,” advises Holmes.

Here are some additional budgeting factors to take into account when planning your home improvement project:

Architect, designer, and contractor fees

When you undertake a project as massive as a home gut and renovation, you’ll need professionals on your side (unless you’re a contractor yourself). Architects, structural engineers, interior designers, plumbers, and electricians, not to mention the general contractor who runs the show, will steer you away from costly mistakes and help your renovation stay safe and on track.

Depending on how much help you get, HomeGuide estimates the cost of professional help and labor can account for 10%-30% of your total cost.

Building code compliance

Depending on the age of your home, your plumbing and electrical systems could be severely outdated. You may not know what you’re dealing with until you open up the walls and start renovating the property.

In some cases, you’ll need to replace some of your home’s core components to keep your project above board. For example, rewiring an entire home costs between $130 and $6,200. Meanwhile, replumbing a house typically costs anywhere from $1,500 to $15,000.

Structural repairs

You may not realize you have foundation issues until your remodel is well underway. From cracks and leaks to settling, the average foundation repair costs between $2,225 and $8,135. 

Plus, you might plan on knocking down a few walls in the process. On average, this move will cost between $500 and $15,000, with the price increasing if the wall is load-bearing or houses plumbing, hearing, electric, or HVAC work. To save on structural costs, work with your architect on a strategy for moving walls in a cost-efficient manner.

Home location

Renovation costs per square foot can vary widely depending on location, with higher-cost urban areas generally running more expensive than suburban or rural ones. While you can’t change where your property is, you can compare multiple contractor quotes to make sure you’re getting a fair price for your area.

Materials

The materials you choose can take up a large share of your total renovation budget. Almost every finish, from flooring and countertops to tile, lighting, and fixtures, comes in a wide range of price points. It really comes down to how simple or high-end you want to go.

Property size

Contractors will often price home renovation projects based on square footage. According to HomeGuide, the average cost per square foot to remodel ranges from $15 to $60. So, let’s say you’re remodeling a house at $60 per square foot. If you have 1,800 square feet, your remodel would cost a total of $108,000, whereas a 2,000-square-foot house would cost $120,000.

»Learn more: Before you start your next renovation, use a Square Footage Calculator to get a clearer picture of your project size and potential costs. A quick calculation can help you plan smarter, budget better, and avoid surprises down the line.

Secondary expenses

Some renovation projects can make it tough (or even impossible) to live in your home while the work is going on. If your kitchen gas or power gets shut off, you’ll likely be eating out more than usual. And if the bathrooms are unusable, you might even need to budget for a hotel stay. All of these extra, day-to-day costs can add up faster than you’d expect.

Tips for managing your remodeling budget

When you’re doing a full gut renovation, having a solid budget isn’t just helpful, it’s essential. Costs can shift quickly once walls come down and hidden issues start to surface, so planning ahead can save you a lot of stress later on. Here are some tips to manage your budget:

Maximizing value: Return on investment (ROI) and financing options for the remodel

A major renovation isn’t just about making your home look better or work better. It’s also about making smart money moves along the way. The right upgrades can increase your home’s value, and choosing the right way to finance the project can help you stay on budget without feeling stretched too thin.

Some projects tend to give you more bang for your buck than others, especially kitchens, bathrooms, and exterior updates that boost curb appeal. These upgrades are especially appealing to buyers because they improve the spaces people use most, make the home feel move-in ready, and strengthen first impressions from the outside in.

On average, minor kitchen remodels can recoup around 113% of their cost, bathroom remodels often return about 80%, and exterior improvements like siding replacements can recover 114%.

When it comes to paying for a big remodel, you have a few options depending on your situation. Home equity loans and home equity lines of credit (HELOC) let you borrow from the value you’ve built in your home, while renovation loans like FHA 203(k) are built specifically for buying and fixing up properties. In some cases, you might also qualify for government grants or assistance programs that can help take the edge off renovation costs.

Build better without breaking the budget

Renovating a home comes with a lot of moving parts, and costs can vary widely depending on your scope, materials, and where you live. While it’s easy to get caught up in design ideas and finishes, keeping your overall budget and long-term goals in mind is key. Every decision, from layout changes to fixture upgrades, can affect both your upfront costs and your home’s future selling price.

Top-selling Charlotte, North Carolina real estate agent Steven Mueller advises homeowners to weigh personal preferences with resale value: “If your goal is to be in the house a year or two, then you might want to build it more towards what the buying pool is going to want. Whereas if you’re going to be there for seven years, you can make it a little more taste-specific because you’ll build equity just by being there.”

In the end, the best renovation is one that fits your lifestyle now while still making financial sense down the road. To make the most informed decisions, take time to understand your home’s current value before you start planning your next upgrade.