It is an indirect way of saying "what will this cost, approximately?"
"Looking at" means that we are discussing, talking over, considering, or negotiating a possible range of proposals with varying prices.
"What sort of..." means that we are broadly categorizing prices into different categories. We're not ready to talk about whether the proposed remodeling project is going to cost $12,200 or $12,600. We want to know what _sort of_ prices they are. In the low thousands? In the low five figures? Tens of thousands?
One might imagine the conversation continuing:
"What sort of prices are we looking at, here? Because if it is going to run into five figures, we just don't have the budget for it and we'd better stop discussing this now and look at some completely different approach."