Considering a home remodel in the Bay Area? Understanding the house remodel costs involved is essential. Our guide breaks down renovation expenses, offering insights into factors affecting costs, average costs per square foot, and room-specific estimates to help you plan your dream home transformation efficiently.

How Much Does It Cost to Renovate a House?

Renovation expenses typically cost between 10% and 20% of your home’s current value. The final cost of your home remodel is determined by factors such as location, project size and scope, materials, labor, and permit costs. Review the following chart for a better understanding of house remodel costs:

RenovationOverall Percentage of Home Value
Kitchen5% to 10%
Living room1% to 3%
Dining room1% to 3%
Primary bedroom1% to 3%
Guest bedroom1% to 2%
Three- or four-piece bathrooms5% to 7%
Powder room1% to 4%
Basement10% to 15%
Attic to room conversion10% to 15%
Patio1% to 5%

Should You Remodel, Move, or Build a Custom Home?

how much does it cost to renovate a house

Deciding whether to remodel, move, or build a custom home is a personal decision that requires careful consideration of multiple factors. These include the housing market, cost, your needs and desires, as well as your potential return on investment.

Additional considerations may also include your home’s current condition, the neighborhood you’re located in, and the availability of suitable homes.

Here is a thorough review of the pros and cons of remodeling and moving in San Jose and the Bay Area:

Remodeling Pros

  • Property value: Remodeling your Bay Area home can increase its market value and make it more appealing to potential future buyers.
  • Functionality: Remodeling your San Jose or Bay Area home is a chance to redesign your space, reduce clutter, and improve its overall flow. From kitchen expansions and additions to custom fixtures and updated finishes, you can design the home you’ve always wanted.
  • Customization: A remodel gives you the opportunity to update the interior or exterior of your home. You can bring your unique style to life or renovate it according to the latest trends.
  • Modernization: During your remodeling project, you may decide to install energy-efficient appliances or smart home technologies. This not only increases the comfort of your home but can also attract potential home buyers should you choose to sell in the future.

Remodeling Cons

  • Construction: Remodeling your home can become disruptive to your daily life. This is especially true if you plan to remain in your home during the renovation process. While each remodel varies in size and scope, some common disruptions include noise dust, and access restrictions to areas of your home.
  • Permits: Acquiring permits can be time-consuming and overwhelming without the help of a professional contractor. Every remodel in San Jose and the Bay Area must adhere to building codes and regulations. If there are permitting challenges, you may experience delays and additional costs.
  • Space limitations: If you’re remodeling a home on a small plot of land, you may encounter limitations as to the extent of your project. You may need to make compromises to the design or layout of your vision.
  • Hidden problems: During renovations, there is the risk of unexpected issues, such as water damage or foundation problems. Reallocating funds towards repairs can dig into your budget and take away from your original remodeling plans.

Moving Pros

  • Move-in ready: Rather than spending up to a year or more waiting for a home to meet your needs and wants, you can find a property that’s move-in ready. Moving gives you the opportunity to find a space that accommodates your family right away without the need for renovations or additions.
  • Modern features: Newer Bay Area homes are being built with more energy-efficient features and smart home technology. Buying a home already equipped with these modern upgrades can reduce your energy bills and improve your comfort.
  • Value: If the market value of your current home is higher than your remaining mortgage, you can make a profit from the sale. You can use this profit to purchase a more valuable property that suits your growing needs and desires.
  • Fresh start: A new home can mean a new neighborhood, community, or school system. This gives you and your family an exciting fresh start and an opportunity to flourish in a new environment.

Moving Cons

  • Costs: Depending on your circumstances, a down payment along with moving costs can result in more expenses than a remodel. When you remodel, you’re potentially adding to the market value of your current home, which can lead to a greater profit in a future sale.
  • Logistics: Finding a new home can be challenging when you’re looking for a home that checks all your boxes. There are many factors to consider during a move, including location, size, and price.
  • Emotions: Leaving your first home, a home you started a family in, or a home you’ve occupied for many years can be emotional. Moving may also result in changes to the neighborhood, work, and school environments for you and your family.
  • Personalization: Although a move gives you the flexibility to choose the number, type, and size of rooms you’re looking for, you’re limited to style and design choices. Remodels allow you to personalize your space, whereas a move comes with existing interior and exterior characteristics that would be an extra cost to alter.

Custom Home Build Pros

  • Personalization: When you build a custom home, you get to design every aspect from ceiling height and number of stories to the flooring and paint colors. You’ll collaborate with architects and engineers to create your dream home.
  • Financing: As opposed to remodeling, there are different financing options available when building a custom home. Financing options include construction loans, lot loans, and mortgage-based loans, all with their own advantages.
  • Less Competition: Building your own home removes all the stress of market competition and placing offers. You don’t have to go through the stress of waiting to hear if your offer was approved or being out-bid.
  • Energy Efficiency: Today’s building materials comply with more energy-efficient regulations than older homes did. You get to decide whether to install energy-efficient HVAC systems, insulated windows, and more.

Custom Home Build Cons

  • Cost: A custom home is more costly than a remodel or move because it not only involves building expenses but also land development, permit, and design expenses. You will need to acquire land, cultivate for construction, apply and pay for proper permitting, and hire designers as well as contractors.
  • Timeline: Custom homes take on average 12 to 18 months to build in California. Larger homes can take up to years from concept to completion, while smaller homes can take as little as six months from start to finish.
  • Stress: All the decisions you’re responsible for making, such as your budget, material grades, and picking fixtures and finishings, may become overwhelming. Hiring contractors who have in-house design teams and technicians can help ease the process.
  • Land development: When you build a custom home, you first need to find and purchase land. It might be necessary to develop the land, and you may have to explore areas beyond your locality to acquire a plot with enough space.

House Remodel Costs in San Jose and Bay Area

The ultimate cost of a home remodel is based on numerous factors that are unique to every project. For example, your choice of high-end materials versus standard materials will impact the final cost.

The following chart outlines the average cost comparison between low-end, mid-range, and high-end home renovations in the Bay Area:

how much to remodel a house
Project ScopeAverage CostTypes of Renovations
Low-end$15,000 to $40,000Cosmetic upgrades and renovations such as flooring, landscaping, paint, trim, molding, stock cabinetry, inexpensive appliances, and countertops.
Mid-range$40,000 to $75,000Combination of low-grade and above-average materials and appliances. Renovations may include full bathroom and kitchen remodels, updated lighting fixtures, hardwood flooring, and exterior finishes such as siding.
High-end$75,000 to $200,000Involves mid-range and high-end materials, appliances, and finishes. Renovations may include custom cabinetry, built-in appliances, structural and foundation repairs, floor plan alterations, HVAC replacement, roofing, and professional interior design services.

While finishes and materials are big contributors to house remodeling costs, the room, size, and scope of the renovation also affect your expenses. Here is a chart outlining the varying costs between home remodels based on project size and scope:

Project ScopeSmall Project Average CostMedium-Large Project Average Cost
Full Home$100,000$200,000
House Exterior$6,000$20,000
Living Room$1,500$10,000
Basement or Attic$20,000$75,000

Average Cost to Remodel a House Per Square Foot

how much does it cost to remodel a 2,000 sq ft house

When you’re working on a home remodeling project, it’s important to understand how costs and distributed. Knowing how the final costs add up can help you develop a realistic budget. One of the major considerations is the square footage of the room you’re renovating. Here are the average costs per square foot for home remodels in San Jose and the Bay Area:

  • A low-end renovation costs between $20 and $60 per square foot. These remodels keep your home’s foundation, roof, and walls intact. Low-end renovations use cost-effective finishes such as laminate and vinyl, as well as prefabricated cabinetry.
  • Pricing for a mid-range renovation fluctuates from $60 to $100 per square foot. Mid-range remodels can include upgrades to appliances, HVACs, and plumbing systems.
  • A high-end renovation can cost anywhere from $100 to $150 per square foot. These remodels can involve structural changes, upgrades to luxury appliances, and the use of high-quality materials such as hardwood and natural stone.

Bay Area Full Home Remodeling Cost by Size

Top Home Builders is here to answer all your house remodeling questions. Common home remodeling questions include “How much does it cost to remodel a 2,000 sq ft house?” and “What is the cost to remodel a $1,500 sq ft house?” As seen in the above charts, each home remodeling project can be classified as a low-end, mid-range, or high-end remodel based on the materials, structural changes, and finishes involved. Here are the average costs to remodel a house in the Bay Area by square footage for low-to-high-end renovations:

Square FootageLow-end Average CostsMid-range Average CostsHigh-end Average Costs
1,200$24,000 to $72,000$72,000 to $120,000$120,000 to $180,000
1,500$30,000 to $90,000$90,000 to $150,000$150,000 to $225,000
2,000$40,000 to $120,000$120,000 to $200,000$200,000 to $300,000
2,500$50,000 to $150,000$150,000 to $250,000$250,000 to $375,000
3,000$60,000 to $180,000$180,000 to $300,000$300,000 to $450,000
4,000$80,000 to $240,000$240,000 to $400,000$400,000 to $600,000

Cost to Remodel 1,500 sq ft. House vs. 2,000 sq ft. House

Remodeling a larger house typically requires more materials and labor, resulting in higher costs. While the size of the house is a significant factor in determining the cost to remodel, it’s not the only factor. For example, if a 1,500 sq ft. house and a 2,000 sq ft. house both update the kitchen and bathrooms, the cost per square foot may be similar.

However, if one house requires more extensive renovations, such as converting a basement to a home theater or expanding the kitchen with premium upgrades, the cost will be higher regardless of the original square footage.

house remodel costs bay area

Bay Area and San Jose House Remodel Costs by Room

Every room in your home serves a distinct purpose and therefore involves varying elements such as appliances, fixtures, and plumbing systems. While a bedroom may cost less to remodel than a living room, the living room costs less to renovate than the bathroom. Although many remodels vary greatly in size, the kitchens and bathrooms will have added costs regardless of their size to accommodate ventilation systems, plumbing hookups, and appliances or fixtures. The following chart displays the average remodel costs by room:

Type of RoomAverage Cost
Kitchen$23,000 to $135,000
Bathroom$20,000 to $38,000
Living room$10,000 to $15,000
Bedroom$1,500 to $5,000
Basement$20,000 to $50,000
Attic$25,000 to $75,000
Garage$7,000 to $15,000
Room addition$35,000 to $120,000

Related Article: Home Additions That Increase Home Value

Next Steps to Your House Remodel in San Jose

Remodeling your home in San Jose & the Bay Area can be a rewarding investment. By understanding the costs and planning accordingly, you can achieve your desired upgrades within budget. Trust Top Home Builders to deliver quality craftsmanship and expert guidance, ensuring your remodel meets your expectations and adds value to your home.