Kitchen Remodel Average Cost: What You Don’t Know WILL Cost You

Here at Contractor Hiring Help, we often tell homeowners that what they don’t know when hiring a contractor will hurt them. This same principle holds true for remodeling projects. If you don’t know a kitchen remodel average cost, you very well will go far above your initial budget.

Today we’re going to show you the kitchen remodel average cost broken down into three tiers: minor, major, and upscale. This might give you a better idea of what category you’re in. Afterward, we’ll talk about cost creep, which is the single biggest reason most kitchen remodels go way over budget.

Behind The Numbers

According to Remodeling Magazine, the kitchen remodel average cost is broken down into the following three tiers:

• Minor kitchen – remodel – mid-range
  • $21,695 national average
  • Costs recouped 72.8% (111.1% in San Francisco, CA)

• Major – kitchen remodel – mid-range
  • $58,367 national average
  • Costs recouped 68.7% (95.2% in San Francisco, CA)

• Major kitchen remodel – upscale
  • $113,464 national average
  • Costs recouped 59.7% (87.8% in San Francisco, CA)

It’s interesting to note the costs that are recouped when selling a home later on. To attain a slightly larger perspective, we’ve included the recouped cost for homes in San Francisco, CA.

What tier do you land in?

Sticker Shocked?

As you can clearly see, kitchen remodels are expensive as all hell. Just the entry point alone for a minor kitchen remodel will cost you the same amount as a new car!

There’s a reason the price can spiral out of control so quickly.

Cost creep.

Cost Creep

What in the world is “cost creep?” Is it when a creepy dude is following you around at Costco?

OK, that joke stunk.

Cost creep is the unplanned purchases and upgrades that occur during the remodel. It can easily add 10-15% to your overall budget. Here’s how to avoid cost creep during your next project:

• Do your homework before you even have initial discussions with a contractor. If you’re chatting with him at the beginning, he’ll offer higher-end options.
• Set your budget and know what you want for your kitchen. Then worry about hiring a contractor.
• Don’t get sucked into thinking, “Well, we’re already spending 25K. What are a few additional thousand bucks here and there?”
• Know ahead of time which appliances you’re going to buy. Don’t get snookered into buying stainless steal if you’ve already made up your mind on a more inexpensive product.

Lastly, don’t do any shopping with your contractor in-tow. He’ll make sure you spend a lot more money. We’ve actually seen cost creep affect projects so much that they doubled from 50K to 100K!

Please remember a commonly overlooked point: if you sign a contract that uses up your entire budget – and then during the construction the contractor finds something unexpected like water, rot, or termite damage – where are you going to find the extra money needed to fix these issues? At this point in the process, all the kitchen materials have been purchased and it’s too late to turn back. The additional expenses to repair the unexpected damage will have to come from somewhere, right?

Sadly, we’ve seen this happen way too many times.

Basic vs. Upscale

Here are a few final thoughts regarding a kitchen remodel average cost. Sometimes a remodel falls into the upscale category simply due to the sheer size of a kitchen. If it’s so large that installing cabinets means having them lined up along an enormous length of wall space, then of course the project is going to cost more. In many cases, upscale = total square footage.

The price of your kitchen remodel will also depend on the types of countertops you buy, appliances you bring home, and the flooring you have installed. Just make sure to set your budget and make your decisions long before hiring a contractor.

Do you have any suggestions for avoiding cost creep? Feel free to share them below.

Tags: kitchen remodel, remodeling tips