Going over budget can easily happen with a kitchen renovation. If you follow some basic rules, you’re more likely to stay within budget. From to get go, decide how much you can spend and stick with that number. Consider how long you’re going to live in the home. If you’re considering a move within five years, then the improvement is a real estate investment. Only spend what you think you can reasonably get back on your investment. If you plan to stay in the home more than five years, go for a remodel that will make everyone in the home most comfortable. Be sure to consider the market value of your neighborhood also. Is it upscale or modest? You don’t want to go overboard because your investment will lose its value.
List Out Your Remodeling Priorities
Once you’ve got a ballpark figure, it’s time to compile a list of your priorities. What’s most important to you? Are new cabinets a must-have? Is a granite countertop important? When you make a list, you can avoid unexpected costs and still get the top things that you want completed. Goodies like designer faucets and impressive crown molding can tally up fast. You just may be able to do without some goodies while staying in budget.
Set Aside Extra for the Unexpected
Plan on setting aside around 20 percent of your budget for those unexpected surprises. Lots of things can pop up. For example, that ripped out wall may reveal outdated wiring. Or, pulling out that dishwasher for the renovation may reveal a rotten floor due to a hidden water leak. When you set aside some extra for surprises, you’ve then got some wiggle room in your budget to pay for needed repairs or updates.
Know How You’ll Pay for the Project
Make sure you know the details of how you’re going to pay for your kitchen remodel. Home equity loans, personal loans and cash are the most common. If you’re opting for a loan, factor in costs like loan origination fees and interest. Keep in mind that you’ll have to give the contractor a deposit and pay for materials upfront.
DIY Work to Save Money
Doing some of the small work on your own can lower the costs and help you stay within budget. You can probably remove old cabinets on your own. Another easy task is to rip up the flooring. If you can manage these tasks, go ahead and roll up your sleeves.
Stay on Target
Create a spread sheet for your budget and keep tabs with it. If you see an expense starting to go over budget, you stop it. As your renovation commences, avoid extras. You may be tempted to add to your original list but don’t.
If you’re considering a kitchen remodel, let us know your budget and priority list. We’ll outline the costs for materials and the costs for labor. This way, you’ll have a realistic financial picture. We’ll help you stay within what you can afford and do a quality job.