Skip to main content
Fulltext search
FILTER RESULTS BY:
RECOMMENDED IN RENT
Moving to NYC after college? Here's how to find a rental apartment
RECOMMENDED IN BUY
How buying real estate in NYC is unlike anywhere else
RECOMMENDED IN SELL
A guide to using a no-fee renovation loan from a NYC real estate firm
RECOMMENDED IN IMPROVE
How to make your NYC renovation more pet-friendly
BEST REAL ESTATE WEBSITE!
National Association of Real Estate Editors
BEST REAL ESTATE WEBSITE! National Association of Real Estate Editors
Brick Underground
Social Links
follow:
  • Facebook
  • Twitter
  • Instagram
  • Flipboard
  • search
Brick Underground
☰ Brick Underground
Brick Underground
Brick Underground
☰
Brick Underground
  • Buy
    • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
    A rendering of the roofdeck at 55 Broad Street.
    Rent
    Housing lottery launches for 143 apartments in the Financial District
    Aerial panoramic view of Red Hook, Staten Island, Brooklyn, and Verrazano-Narrows Bridge
    Sales Market
    24 NYC neighborhoods where median prices more than doubled in the past decade
    431 West 54th Street is a co-op building that allows subletting.
    Investing
    Want to buy an investment apartment to rent out? Here's what you need to know
  • Rent
    • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
    Young woman using laptop at new apartment, with moving boxes around.
    Roommates + Landlords
    Didn't get your security deposit returned in NYC? A new chatbot can help
    A rendering of the six-story building in Park Slope.
    Affordable Housing
    Housing lottery launches for 45 rent-stabilized units in Park Slope
    Laura and her dog Jack
    Rent
    Why I moved to NYC from Brazil: I relocated for work and reunited with friends I made 15 years ago
  • Sell
    • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
    Aerial view of downtown Brooklyn
    Sell
    Median sales price in Brooklyn climbs to $995,000 in the second quarter
    Downtown New York City
    Sell
    Manhattan deals rose to highest level in nearly two years, defying national trends
    new condo building and older co-op buildings in Prospect Heights, Brooklyn
    Sell
    Brooklyn median price nears $1 million but the spring market is a question mark
  • Live
    • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
    FlatRate moving brick underground
    Live
    How to troubleshoot your move in advance
    Sponsored By flatrate
    Distressed woman sitting in her apartment
    Troubleshooting
    Ask Altagracia: My live-in partner is abusive. How can I get out of my lease?
    Sponsored By Outerbridge Law P.C.
    NYC apartment buildings with fire escapes
    Neighborhood Intel
    Can you sit on a fire escape in NYC? 5 things to know
  • Improve
    • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide
    mini splits apartments new york city
    Products + Services
    Yes, you can install central AC in your co-op or condo unit. Here's how
    image
    Products + Services
    Take back your deck! How to win the war with mosquitoes and enjoy outdoor living again
    NYC apartment building with AC units
    Products + Services
    My neighbor's dripping AC is driving me crazy. What can I do?
  • Boards & Buildings
    • Boards & Buildings
    • Boards
    • Finance
    • Insurance
    • Legal
    • Property Management
    • Structure & Systems
    • Sustainability
    Burned and Boarded Up Windows
    When should your board hire a public adjuster?
    Manhattan GM
    What should we consider when renewing insurance for our building?
    Facade of NYC buildings
    How much is insurance on a NYC co-op or condo building?
  • Advertise
    • Advertise with us
    • Sponsored Content
    • Experts
    FlatRate moving brick underground
    Live
    How to troubleshoot your move in advance
    Sponsored By flatrate
    Distressed woman sitting in her apartment
    Troubleshooting
    Ask Altagracia: My live-in partner is abusive. How can I get out of my lease?
    Sponsored By Outerbridge Law P.C.
    Building facades in New York in winter
    Roommates + Landlords
    Ask Altagracia: I withheld rent due to inadequate heat and I'm being hassled to pay it back. What should I do?
    Sponsored By Outerbridge Law P.C.
  • Brick Report
  • About Us
  • About Us
The subscription service is currently unavailable. Please check again later.
Fulltext search
FILTER RESULTS BY:
New Main menu
  • Buy
    • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
  • Rent
    • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
  • Sell
    • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
  • Live
    • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
  • Improve
    • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide
  • Boards & Buildings
    • Boards & Buildings
    • Boards
    • Finance
    • Insurance
    • Legal
    • Property Management
    • Structure & Systems
    • Sustainability
  • Advertise
    • Advertise with us
    • Sponsored Content
    • Experts
  • Brick Report
  • About Us
    • About Us
    • Advertise
  • About Us
SUBSCRIBE TO OUR NEWSLETTER →
Social Links Footer
  • Facebook
  • Twitter
  • Instagram
  • Search
Renovation [ SPONSORED ]

Why many owners underestimate NYC renovation costs

  • Owners often have unrealistic expectations for a renovation's timeline, scope, and budget
  • Most gut renovations need three to six months in the Design phase then four to 12 months in the Build phase
  • Hidden problems, such as structural damage, plumbing issues, or mold and asbestos, can impact costs
By Bolster  | August 18, 2023 - 12:30PM
NYC rowhouses

Owners often overlook or underestimate expenses such as permits, design fees, architectural services, demolition costs, disposal fees, and the cost of temporary housing.

Bolster

SHARE:
Share to Facebook
Share to Twitter
Print
More...

If you’re planning a major gut renovation in New York City, you’ve likely started to consider the potential cost of your renovation. You may be surprised to learn that owners typically underestimate the true cost of their renovation by as much as 20 to 40 percent.

Bolster, a NYC data-driven, design-build firm with more than a decade of experience doing high-end renovations, has seen owners stumble over this many times. To avoid this scenario, here are the most common reasons that owners underestimate the cost of their renovation.

Unrealistic expectations for timeline, scope, and budget

Many owners have a personal event or timeline that is driving their major renovation needs. Perhaps they are expecting a new member of the family, closing on a home, or would like to be settled by a specific date (i.e. the holidays or the start of a new school year). Depending on the scope of the project, most major gut renovations will need at least six months in the Design phase, followed by five to 12 (or more) months in the Build phase. It’s a fact that a longer renovation timeline leads to higher carrying and labor costs, and thus a more expensive renovation overall.

If the scope or complexity of the project ends up being higher than anticipated (often due to necessary mechanical upgrades, some of which may require third parties or specialists), this can also drive the cost higher.

Another common factor is unrealistic budget expectations: Owners who are moving from another part of the country with a significantly lower cost of living.

Lastly, people often dream about their renovation “wish list” (which may include high-end finishes, expensive fixtures, or a complex design) without fully considering the associated costs. It's crucial to align expectations with the available budget and consult professionals to understand the feasibility of specific ideas. In the same vein, owners may overestimate how much the quality of fixtures and finishes will reduce their budget (selecting less expensive options will only net you marginal savings). An important factor in the cost of construction is the quality of subcontractors and labor.

Lack of knowledge about the property

Many of Bolster’s potential renovators are buyers looking to purchase a property with the intention of renovating it. But you can’t X-ray a property, and failing to conduct a comprehensive assessment can lead to underestimating the cost.

When walls are opened, hidden problems such as structural damage, electrical or plumbing issues, or mold and asbestos, can be uncovered, requiring immediate attention and significantly impact your renovation costs. A thorough, professional inspection is essential to uncover any potential issues and determine a project’s potential cost.

No matter how much preparation is done, unexpected issues can (and usually do) arise during a major gut renovation. One way Bolster helps to combat this and deliver risk-free renovation is through the Bolster Promise. Once we perform due diligence and verify the existing conditions of a property, we finalize the project’s estimate through their unique iterative pricing process and absorb unforeseen project costs after the demolition phase of every project. This is how Bolster is able to deliver projects successfully for a single, up-front fixed price.

Inaccurate contractor estimates

Reliance on inaccurate or incomplete estimates from contractors can also lead you to underestimate the cost. If you’re bidding out your project, or if you’re going the Design-Build route, it’s essential that you obtain detailed quotes from multiple contractors and firms and ensure they include all necessary materials, labor, and potential contingencies. (Here’s what every renovation contractor’s estimate should include.) Bolster’s model follows a unique “Design-Price-Design-Price-Build” model. This iterative pricing model allows all parties to track the fluctuation in cost which arises from changes in design and/or the evolution of the project. 

Owners often overlook or underestimate expenses that come with a major gut renovation, such as permits, design fees, architectural services, demolition costs, disposal fees, and the cost of temporary housing during the renovation or carrying costs (learn more about carrying costs in a major NYC renovation here). These expenses can add up significantly and should be factored into the overall budget. A team with a solid track record of transparency and delivering projects on-time can help predict your carrying costs and will take into account the estimation of any necessary miscellaneous expenses during the pricing phase of your project.

How to avoid underestimating your project

To avoid underestimating the cost of a major gut renovation, it's crucial to conduct thorough research, plan meticulously, consult professionals, and account for potential contingencies. Building a realistic budget that considers all necessary expenses will help ensure a smoother renovation process.

There are a few ways you can set yourself up for success. The best way to predict your renovation cost is to consider the top four impacts on project cost—size, scope, complexity, and quality–and discuss in detail with a renovation professional like Bolster, who offers a unique iterative pricing process to determine a fixed-price cost upfront.

To get a fast, accurate, and detailed estimate in seconds, check out Bolster’s Major Renovation Calculator, which uses the four inputs mentioned above to provide a personalized snapshot of your potential renovation costs (this tool was built using years of Bolster’s proprietary data, and works best for major gut renovations in NYC).


The Bolster Smart Renovation Zero-Risk Guarantee

How can a design-build firm guarantee a Zero-Risk renovation?

Bolster has pioneered Smart Renovation. We apply quantitative analysis along with our proprietary technology solution to identify and quantify the performance risk on every renovation project. The result is a personalized strategic approach to each renovation that allows us to absorb 100 percent of the homeowner’s risk. Your home will be beautifully designed, and delivered on-time and on-budget. That is our guarantee.

Smart Renovation & Zero-Risk means that Homeowners are now free to dream.

To start your major home renovation project visit bolster.us.

The Bolster Promise video

You Might Also Like

Park Slope brownstone
Renovation Have your eye on a NYC fixer-upper? Here’s how to estimate what a renovation will cost
NYC brownstones
Renovation What factors most impact your NYC renovation costs?
Loft buildings in downtown Manhattan
Renovation Here's how to avoid risk when renovating in NYC
Brick Underground articles occasionally include the expertise of, or information about, advertising partners when relevant to the story. We will never promote an advertiser's product without making the relationship clear to our readers.

topics:

contractors Renovation
SHARE
TWEET
BRICK’S PICKS
NYC apartment building with AC units
My neighbor's dripping AC is driving me crazy. What can I do?
Historic brick facades of NYC apartment buildings
Getting overcharged by a landlord? Here’s how the Tenant Protection Unit helps rent-stabilized tenants
Apartment buildings in Soho
New Rent Guidelines Board report justifies a rent freeze, tenant advocates claim
Brooklyn apartment buildings
Understanding net effective rent: Here's how to calculate your real monthly rent
image
How much should you renovate your NYC apartment or house before selling?
Council Member Shahana Hanif hold press conference before the City Council vote on Arrow Linen spot rezoning.
City Council signs off on 10-story towers for Arrow Linen site
Follow Brick on Instagram
@brickunderground | #brickunderground
Brick UndergroundBRICK UNDERGROUNDREAL LIFE. REAL ESTATE. REAL NEW YORK.
Social Links Footer
  • Facebook
  • Twitter
  • Instagram
  • Search
Main menu footer
  • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
  • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
  • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
  • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
  • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide

Get more news you can actually use...

Email Address

Delivered to your inbox weekly - for free.

*By signing up you agree to receive occasional emails on behalf of our sponsors

Footer Menu
  • About Us
  • Advertise

Copyright 2009-2024 by BND Ventures Inc | Privacy Policy | Terms of Service | Ad Choices | Login