How to calculate the cost of your renovation

Careful planning is the key to success when it comes to renovation.

Whether you need a small home bathroom renovation or a full commercial remodel, it’s vital not to lose sight of spending. Today, we’re looking at steps for budgeting and calculating the cost of your renovation. 

1. Consider why you’re renovating 

Renovations can transform a space, adding value and comfort. In fact, renovating a luxury house in Spain could increase its price by up to 65%. But for true success, you need to keep your goals in mind.

When deciding how much to spend, consider what your aim is and which features need to be at the top of your list. This will help you focus your time and budget in the right areas.

For instance, are you primarily renovating for energy efficiency, to increase space, or to fix a safety issue? Is your décor tired and in need of a revamp? Concentrating on your objectives means you can prioritise the ‘must-haves’ over the ‘nice-to-haves’. 

2. Compare your goals and budget 

There is no one-size-fits-all approach to renovation. Once you’ve identified your goals, the key is to carefully consider what you’d like to accomplish against your budget. Are your ideas affordable? Could you better allocate some of your budget to certain areas? Does your budget include room for high-quality materials? 

Working alongside a knowledgeable and trusted team can help you work out how much to spend in each area (more on this below). 

3. Add a margin 

It’s best not to work to the top of your possible budget. Instead, work out what you could spend, then budget below it. 

A UK survey from a few years ago found that 40% of renovators who had completed projects said they overshot their original budget by an average of 20%. 

Of course, this isn’t always the case. But working comfortably within your means can help add flexibility if the unexpected happens or you think of something you want to add. 

Make sure to communicate your budget with your team so they can propose ideas that meet your goals. 

4. Get quotes from trusted companies 

As Balearic Properties explains, it’s often recommended to get three quotes for building work. Make sure to give the same, clear, and in-depth information to any companies you contact so they can provide the most accurate quote possible. Ensure you know whether you have been given an estimate or a full quote.

You can then compare how much they say the costs will be and why. Don’t only consider the bottom line; your quote should include a detailed breakdown of where your money goes, which will help you understand any unforeseen costs or unexpected savings. 

5. Factor everything in 

The cost of your renovation may not be limited to the building work itself. First, there are extras such as trips to site (should you live far away and want to oversee the project) and/or time off work.  These need to be factored into your costs.

Then, there are the costs associated with not being able to use a certain part of the property. For commercial remodels, this might be the amount you lose by closing temporarily. For home renovations, a complete overhaul might mean you need to stay elsewhere for a little while.

6. Don’t forget permits 

When calculating the cost of your renovation in Spain, don’t forget to think about permits and licenses. These can be necessary even for minor work (obra menor), and there will be a fee associated, usually based on a percentage of the cost of the work.

Land zoning is very important when it comes to building in Spain. So, it’s important to research the local rules and regulations for your land before beginning work on a property.

At Epic Constructions, we specialise in building and renovation projects across Mallorca, using high-quality materials and excellent finishes. Our team has worked on a wide range of stunning properties across the island that include modern Mediterranean designs and natural elements.

To find out more, please get in touch or have a look at our recent projects.