09 Oct How to Budget for Your Kitchen Remodel
Plan ahead and have a budget in place before you start your kitchen remodel.
Without proper planning, your expenses may quickly spin out of control, leaving your project in jeopardy. Here are some simple tips from our kitchen remodeling experts at AAA Remodeling Company to help you plan a budget.
1. Establish a budget and stick to it.
Deciding on how much you want to spend on your kitchen remodel can be a challenge. Take into account the following three factors.
- How much can you afford?
- How long do you intend staying in the house?
- How is the neighborhood?
If you do not plan on spending more than five years in the house, then a complete remodel may not make sense unless you are absolutely sure that you can recover the cost when you sell your house. At the same time, spending on a luxurious kitchen remodel will not be practical if the house is located in a modest neighborhood.
2. Break-up the costs into individual components.
Understand how the expenses will break down to help plan the project better. Usually, labor costs take up the biggest chunk of the budget. New cabinetry and appliances can also consume a large part. The rest would go into windows, fittings, fixtures, and other costs.
3. Have a contingency fund.
It is hard to plan every expense in advance, so it is important to set aside a contingency fund to take care of any surprise expenses that may emerge along the way. Home remodeling experts recommend that you should set aside 20 percent of the budget for contingencies.
4. Prioritize the renovations.
Depending on your needs, make a priority list of renovations in order of their importance. This will be helpful if you go over budget and you have to eliminate lesser important jobs to save costs.
5. Plan the financing.
It is extremely important to know how you plan to pay for the project. Home equity loans are a popular way to fund kitchen remodeling projects. Homeowners may also consider personal loans, refinancing, or a loan against a retirement plan. You may choose to pay using cash-in-hand, but always check all your options. You may find a loan at a lower interest rate.
6. Consider the cost of moving to another place and eating out.
You will be without a kitchen for the duration of your kitchen remodeling project. You may decide to move to another place, eat out at restaurants, or bring home take-out food. In any case, factor in these costs into your budget.
7. Keep track of the expenses.
Maintain a spreadsheet of all expenses and keep track of all tasks completed. Any deviations should be noted and timely corrective action taken. These simple budgeting tips will help make sure that your kitchen remodeling project runs smoothly and in a stress-free manner. Call AAA Remodeling Company at (636) 349-5777 and get started today!