Realistic Investment: Planning Your Budget

A significant amount of research is necessary for any home remodeling project to run smoothly. Knowing what you want and why is easy, but determining how to achieve it without breaking the bank can be quite complicated. The budget conversation can be awkward and anxiety-ridden if you are not prepared. So, before you start choosing color schemes and flooring options, make sure you know what you’re in for.

 

The scope of your remodel will determine what materials, skills, labor, and equipment are needed to complete the job, which will all contribute to the overall cost. It is essential to be realistic about your financial considerations so that contractors can focus their attention on what really matters—making your vision come to life. When it comes to your budget, here are some guidelines that will keep you in check on what to expect.

 

Consider the costs 

Once you know exactly what type of remodeling project you have in mind—one room, multiple rooms, or complete re-design of your space—you will need to budget expenses for your projects carefully and thoroughly. Research the average cost vs. value for typical remodeling projects to ballpark what you will spend.

 

Ask yourself the following:

  • How long do you plan on staying in the home?
  • What is your gross annual income (including expenses)?
  • How will you pay for it?

 

The following questions will help you establish how much money you can spend. If you plan on staying in the home for only a few years, it is beneficial to focus on projects that will increase ROI (return on investment). Calculating your gross annual income along with usual expenses will determine how much money you have left to spend. If you will be borrowing the money, you need to assess how much the bank will lend you and how it will affect your monthly expenses.

 

Prioritize your plan

Decisions about materials such as flooring, paint, cabinetry, lighting, etc. will need to be made in order to create an accurate budget and smooth project development. These materials come in a range of styles and prices. Often your visions will not align with your budget and you will have to make compromises and scale down your dream. Determine what your main priorities are (and what you are flexible on) so that your contractor can help you cut costs. Take your time to reach purchasing decisions so that you and your wallet are satisfied with the end product.

 

Quotes and conversations

Obviously, quotes will range in amount depending on the scope of your project and the size of your space. The more specific you are about what you want, the more accurate the quote will be. Don’t be afraid to ask questions and discuss all options; this will ensure that you get the most accurate estimate. Talk to friends and relatives about their home renovations for advice and average numbers.

 

Expect the unexpected

More often than not, your home may have unexpected issues hiding beneath the surface. These hidden imperfections cause remodeling projects to run over the intended budget. Allow a 10%-20% contingency for unforeseen costs when determining your budget. Giving yourself a cushion upfront saves you from panic and chaos later.

 

Dealing with money is never enjoyable; having a conversation about money is even less enjoyable. If you plan ahead and do your homework, the conversation and the project will be much more pleasant for you, your contractor, and your home.

 

Allow Kitchen Elements to run your home remodeling project smoothly and efficiently. Call today to discuss your vision, and we will do our best to make it a reality. Let’s get started!