Before you can begin your home remodeling project, you’ll need to determine your budget. With all the options available to you, though, nailing down an accurate budget can be a difficult thing to do. Fortunately, there are some standard rules and tools that can help. Follow these five steps to get a clear picture of the budget you’ll need to accomplish your home remodeling goals.
According to The Washington Post, “A broad rule of thumb is that you should spend about 5 to 15 percent of your home value on kitchen renovation,” says Dan DiClerico, a smart-home expert for HomeAdvisor, a home improvement platform in New York City. “So, if your home is worth $300,000, you should spend $15,000 to $45,000 on the kitchen. A bathroom renovation should cost about 3 to 7 percent of your home value.”
How To Budget For Home Remodel
Determine The Scope Of Your Project
Does your room need a complete gut job or just a minor facelift? According to Remodeling magazine’s latest report on 2015 national averages, a kitchen remodel can range from about $19,000 for a minor “face-lift” to more than $56,000 for a major remodel, depending on the value of your home.
A general rule of thumb, according to House Logic, is that major upgrades, such as a bathroom remodel or a living room addition, typically cost $100 to $200 per square foot.
- 35% Cabinetry
Because cabinets take up the largest percentage of your budget, it’s best to start here. First determine the overall design you are looking for, and how you will achieve it. Keep in mind that there are tricks you can steal from the trade to get a high-end looking design on a tight budget.
- 20% Labor
- 12% Countertops
- 12% Appliances
- 8% Flooring
- 5% Lighting and Electrical
- 5% Faucets and Plumbing
- 3% Walls and Trim
- 100% Total
Cost Of Living Expenses
Often times it’s the day-to-day costs that get overlooked, causing you to go way over budget.
If you’re remodeling your kitchen, will you have to eat out? Will you have to live someplace else while the work is being done? Be sure to take these costs into consideration when planning your budget.
Factor In The Variables
There are multiple factors that go into determining your remodeling budget. Remodeling magazine's Cost vs. Value Report (released by region and major city each year) is a great place to start. It provides national averages for 36 common remodeling projects.
While it’s fairly accurate, it’s still a one-size-fits-all approach. With all the variables that can affect your budget, here are some factors to consider:
Home Value: Take into account not only what you think your home is worth, but also the value of similar updated homes in your neighborhood. Zillow is a great resource for this: simply enter your address to get an interactive map with home values and other information.
Future: If your goal is to spend the next 10 to 15 years enjoying your remodeled room, you might be willing to spend more than if moving is part of your five year plan.
Size: The average kitchen is approximately seven percent of a home's total square footage. If your kitchen is larger or smaller than this average, you may need to increase or decrease your budget accordingly.
Layout: If you already know you're going to want the sink moved, an island appliance added or an interior wall moved, you’ll need to spend well beyond what a basic facelift would cost.
For any questions to help you along the way make sure to give us a call at (972) 241-4444. We'd be happy to help with your next remodel!