Factors to Consider When Coming up With Kitchen Remodeling Budget

Table of Content

1. Settle on How Much You Want to Spend

Coming up with a budget for your kitchen remodel and sticking to it sounds so simple, but it’s harder than you know it.

The mean cost of a standard kitchen remodeling budget is above $80,000. There are three factors that you should consider whether you want to spend that amount.

How much you can afford: Take a look at your finances to find out how much you can spend

How long you intend to stay at your house: If you intend to sell your home within five years, then your kitchen remodelling should be viewed as an enhancement of a real estate investment. Only invest what you think you will recoup when you sell the house. If you intend to live in your home longer than five years, you should do a remodel that will make you and your family the most comfortable.

Your neighbourhood: Is it upscale or modest? If you install a high-class kitchen in a middle-class neighbourhood, you will lose money on your investment when you sell your house. Avoid over-improving.

2. Know the Cost Breakdown

Labour will consume anywhere from 20 to 35 per cent of your project costs. Also, cabinets can consume a big part of your kitchen remodel budget.

Here is a possible breakdown of your kitchen remodelling budget:

Cabinets – 35%
Labor – 20%
Appliances – 20%
Windows – 10%
Fixtures – 5%
Fittings – 3%
Other – 7%

3. Allocate 20% of the Budget to Handle Miscellaneous

However much you plan, you are likely to come across surprises in your kitchen remodel, particularly in an old residence. There is all manner of budget-busting surprises hanging around the walls or under the floor.

Like when you pull out your dishwasher and discover the floor underneath is rotten because of a water leak you had no idea about. Or you rip out your walls and discover your electrical wiring is out of date.

Leave some room for adjustments in your budget to cover these surprises.

4. Come Up With a Priority List

What is most crucial to you? New cabinets? New appliances? List them down in order of your priority so that even if you encounter unexpected hits in your budget, you will still get things that matter is done.

When setting your priorities, remember how important little things such as crown moulding and a super-luxe faucet are to the general look and function of the kitchen. The little things do matter.

5. Know How You Will Fund Your Project

There are several ways to fund a kitchen remodel, but home equity loans are the most popular since they are tax-deductible. Other alternatives include refinancing, taking out a personal loan, or taking a loan against a retirement plan.

If you are getting a loan, consider costs like interest and loan origination fees. Additionally, find out when you will get the funding from your loan. You will need to make deposits with your contractors and pay for materials upfront.

6. Decide Where to Stay During Kitchen Remodeling

Living somewhere else while your kitchen is being worked on is a good idea and will relieve your stress. However, you need to factor in the cost of a hotel or apartment, moving fee, or storage fee.

If you decide to stay while work is going on, there will be a cost to your sanity. Also, you could set up a temporary kitchen in an adjacent room. Remember to factor the cost of doing this into your budget.

7. Consider the Cost of Eating Out

It’s highly likely that you will be eating a lot of your meals in restaurants or carrying home take-out food while your kitchen is being worked on. Factor this expense into your budget.

8. Come Up With a Spreadsheet for your Budget

Create a spreadsheet for your budget. This will help you keep tabs on how much you are spending. If you notice a cost overrun beginning to happen, you can stop it.

9. Handle Some Tasks to Reduce Your Costs

You do not have to pay someone else to handle all the work. For instance, demolition- taking out the old appliances, old cabinets, and flooring – is easy to handle.

10. Avoid Extras

Avoid being tempted to deviate from your budget mid-project. If you find yourself saying, ‘it would be great if we add this feature here, just stop! This is always how a budget gets blown.