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Lancaster Remodeling Costs: Where is My Money Really Going?

Written by The McLennan Team | Mar 5, 2024 4:41:00 PM

One of the most common questions when someone is thinking about starting a remodel on their home is, “How much will it cost?” It’s a tricky question to answer. If you do a quick Google search for “kitchen remodeling costs in Lancaster,” for example, you’ll find answers that range from $19,000 to $165,000 and up–a range that is so broad as to be unhelpful. 

The fact is that for any remodeling project, costs vary widely and are based on a number of factors. Understanding how your money is being spent and what the major components of remodeling costs are will help you feel more prepared to handle your remodeling budget effectively.

 

What Factors Affect My Final Cost?

 

Project Scope

Your project is unique to you and your home. If you and your neighbor both decide you want to remodel your master bathroom, the costs for each project will vary because you want your remodel to be tailored to you–your likes and dislikes, your needs and desires. What sort of project are you doing? Do you want to make minor changes–a refresh instead of a remodel–or does the space need to be torn down to the studs? Are you adding on a room, and if so, are you planning to build up or out? Are you changing the location of walls and plumbing fixtures? How big is the space? There are so many variables involved in a remodeling project and each affects the final cost.

 

Materials and Labor

The size and complexity of the project will impact the cost of both the materials and the labor. The bigger the project, the more materials will be needed. And the more systems the project includes (plumbing, electrical, HVAC, and so on), the more specialized and skilled labor will be needed.

 

The Unexpected

Unforeseen issues and challenges are always a possibility. Once demolition begins, hidden structural issues such as rotting wood or termite damage may be uncovered. These issues will impact the budget of the remodel. Or it could be that the plumbing or electrical in a home is outdated and needs to be replaced. Supply chain issues can impact what materials are available and when. If you want unique or custom features in your home and they’re hard to get ahold of, your final cost may be impacted.

Change orders can also affect your bottom line. If you come up with a new idea part way through the project, it may end up costing more to implement it than if it had been part of the original plan. (This is one reason we recommend working with a designer to help you plan your project. They’re great at thinking of ideas you might not have considered–before the work starts!)

 

The Interconnectedness of Projects

In construction, almost every facet of a project is connected to something else. For example, if you want to add a freestanding tub to your bathroom, you may need to shore up the flooring to handle the extra weight. Moving the kitchen sink from one location to another may also impact where some electrical lines need to run. Opening up a room might mean adding support beams. Sometimes we can plan for these changes and sometimes they come up as we work on a project. They can be hard to predict.

 

What Am I Paying For?

When you embark on a remodeling project, you’re full of excitement and dreams about how wonderful your house will be when the project is done. You know that you’ll be paying for materials and labor, but some of the other cost factors might not be as visible to you. This may result in a little bit of sticker shock when you see your final total. Where is your money being spent?

  • Materials: Materials make up the largest part of most remodeling budgets, as much as 60-70%, depending on the scope of the project. Some of this is non-negotiable—supplies that are necessary to give you the remodel you want. Other expenses can be affected by your choices, such as the finishes you choose.
  • Labor: Labor is, of course, another necessary part of the budget, making up 30-40% of your final cost. While it may seem like an area you can skimp on, skilled craftsmen are worth paying for.
  • Permitting: This is something you as the homeowner may not think about but it can cost hundred of dollars or more to obtain the correct permits for the project.
  • Project management: The work of organizing, scheduling, planning, and executing all aspects of your remodel while making sure trade partners and vendors stay within the timeline—makes up part of your remodeling costs. A great project manager will keep you updated and informed about the progress of your remodel and will keep the many pieces of the project moving forward.
  • Project Development and Design: At McLennan Contracting, you’ll work with a skilled Project Developer to discuss your wants and needs for your remodel, including all details from beginning to end. Your Project Developer will help you make layout and design decisions and think through every aspect of your remodel, using 3D renderings to help you visualize it. This part of the remodeling process is invaluable to your satisfaction with the final product.
  • Hidden Conditions: As discussed above, some things are impossible to plan for in any construction project. Sometimes these issues will impact your bottom line. However, you can minimize this impact by working with a Design-Build company whose process is built around eliminating surprises through pre-construction planning.

How to Prepare Financially

A remodel is a significant investment in your home. While it’s vital that you have your financing in order, some other financial tips can help you have a great experience and feel confident that you’re managing your money well.

  • Allocate funds wisely. Talk to your remodeling company honestly about what funds you have available and how best to use them.
  • Anticipate hidden costs. Have a contingency plan in which you reserve about 30% of your remodeling budget to handle unexpected issues, change orders, and anything else that comes up. This is called the 70/30 rule in remodeling and it provides you with peace of mind.
  • Look into a variety of ways to finance your home remodel to determine what is best for you. Some options include using a home equity line of credit (HELOC), a home equity loan, cash-out refinancing, and paying cash.

 

The Design-Build Model and Finances

Design-build is a method of project delivery that emphasizes up-front planning and all parts of the remodeling process (from planning and design through construction) being handled in-house. This means that your team is all working together to collaborate on ideas, problem solve, and make sure your remodel is everything you hoped it would be. Design-build projects have a much higher satisfaction rating than traditionally delivered projects, in large part because of the collaboration and planning that goes into the remodel before construction starts.

Design-build projects also end up saving the homeowner money. Because of the emphasis on planning and the clear communication between the homeowner and all parts of the remodeling team, design-build projects run smoothly and more cost-efficiently than traditional projects. There are fewer surprises.

 

How to Make Sure You’re Happy

The most expensive home renovation project is the one you’re not happy with. It can be tempting to try to save money everywhere you can, but if that results in a final project that’s just not what you wanted, it really isn’t saving you money at all.

If you need to cut costs, talk to your team about your options. They can provide guidance about selecting finishes and materials that align with your budget, or modifying your scope of work to reduce overall expenses. Just be sure the end product will still bring you the satisfaction you're looking for.

It helps to be prepared going in for the typical cost of a Lancaster remodel by checking out our cost guide. You can also check out these blog posts for specific information about basement remodels, kitchen remodels, bathroom remodels, and home remodels.

Your home is likely your most significant investment and the place you spend most of your time. You want it to be a welcoming, comfortable, lovely space where you enjoy making memories with your family and friends. It’s hard to put a price tag on that. If you’re ready to start a remodel on your home, contact us today and let’s schedule a consultation. We’d love to help you make your home everything you want it to be.