Originally it cost $40,000, but the renovation will be $160,000, according to the ballpark estimate of a contractor we spoke with. All we want is to insulate, update our kitchen, add a family room and turn two bedrooms into a master bedroom suite with an updated bathroom and separate closets. Is the cost realistic? It just seems out of control. How can we avoid such extreme costs and get what we want? A. Move. To get everything you asked for, you should consider other homes that already meet your requirements. When you find there