Kitchen remodeling is an exciting endeavor that can transform your home and increase its value. However, it's important to approach this project with a realistic budget. While the excitement of the project can lead you to overlook the costs, a well-planned budget can ensure that your dream kitchen becomes a reality. In this article brought to you by the professionals at Construction Hero, we share some tips to help you budget for your kitchen remodeling project. If you are looking for a home remodeling company in the Raleigh, NC area, then give Construction Hero a call and schedule a consultation.
Before starting your kitchen remodel, it's essential to determine your goals. Do you want to update the style, improve functionality, or both? Clearly differentiate between your "needs" and your "wants." Take the time to write down all the changes you want to make and prioritize them based on their importance.
During this step, it’s also important to answer a key question: How long do you plan to live in the home? If you plan to stay in your home for another five years or more, investing in your long-term needs is a smart decision. However, if you plan to sell your home in the near future, it's essential to consider the potential resale value of your home. This means taking a critical look at the current market conditions and determining which kitchen features are most in demand among potential buyers.
The next step is to set a realistic budget. Kitchen remodeling might be a bigger project than you think. Generally, the cabinets, appliances, and countertops are some of the most expensive items in a kitchen remodel, and it's crucial to understand their costs before creating a budget. You should also consider the labor costs of demolition, installation, plumbing, and electrical work. Other overlooked expenses include the cost of permits and inspections.
A good rule of thumb is to allocate 10-15% of your home's value towards your kitchen remodel. For example, if your home is worth $500,000, your kitchen remodeling budget should be between $50,000 and $75,000. Of course, this depends on your priorities, the size of your kitchen, and other factors.
Now that you have listed your priorities and investigated the general costs of each, it is time to allocate your budget. Allocate your budget based on the priorities you set in step one. For example, if you prioritize functionality, you may want to allocate more of your budget towards appliances and cabinets rather than towards luxury finishes.
Humans make mistakes, and those mistakes can be costly! No matter how well you plan, unexpected costs can arise during a remodel. It's essential to add a contingency fund of roughly 10% of your budget to cover any unexpected expenses.
Working with an experienced home remodeling company like Construction Hero can help you minimize those unexpected expenses. We have witnessed a lot through our years in home remodeling, and we help clients learn from wisdom rather than experience. Call Construction Hero if you would like to consult with a member of our team.