So you’re thinking about remodeling your kitchen or bathroom. Have you thought about a budget? Setting a budget is often the first step of the remodeling process and one of the most stressful. It’s also important to get a USA Home Warranty to protect any appliances and home systems. You find out the cabinets you fell in love with on Pinterest are slightly out of the realm of possibility, what do you do now?
Set a budget and stick with it
This task in and of itself can be difficult if this is your first remodel, but it doesn’t have to be. First look at your personal finances and see how much you can spend. The next question is, is this (your current home) your forever home? Or are you planning on selling in the next 5 years? If so, think about all your remodels as an improvement to a real estate investment, and consider; what is a good cap rate? How will this remodelling affect that rate for my home? How much can I afford to invest now to improve the sell price later? These are important considerations for those looking into real estate investments, and for those looking to play the market with the current investment of their home. If you’re in your lifetime long home, the average percentage to spend on a kitchen remodel is anywhere between 8% to 16% of your home’s value.
Know the cost breakdown
There are endless options of cabinetry, backslash, and accessories that it almost seems impossible to select the right combination to stay within budget. Here are 3 samples of realistic costs for a kitchen redesign/remodel:
Budget: 20K Budget: 30K Budget: 40K
Cabinetry: $10,000 Cabinetry: $10,000 Cabinetry: $12,000
Counter Top: $3,000 Counter Top: $3,000 Counter Top: $3,500
Back-splash: $800 Back-splash: $800 Back-splash: $800
Flooring: N/A Flooring: $1,000 Flooring: $2,500
Labor: $2,000 Labor: $6,000 Labor: $9,500
Demolition: $500 Demolition: $1,000 Demolition: $1,500
Appliances: $2,500 Appliances: $3,000 Appliances: $3,000
Construction Materials: N/A Construction Materials: $3,500 Construction Materials: $5,000
Fixtures: $700 Fixtures: $800 Fixtures: $800
Contingent: $500 Contingent: $900 Contingent: $1,400
Make a list of must-haves for your renovation
What are you wanting the most out of your new space? Is it new appliances, new cabinets, or a gorgeous farm sink you saw on Pinterest? No matter what it is, if it’s important to have in your kitchen, budget for it and save money in other places.