Monday, June 15, 2015

Kitchen Remodeling Budget

Remodeling can be an exciting and scary proposition. It takes some planning and maybe a reality check or two. Whether you are remodeling for yourself or on an investment property, here are some tips to help with the process:

1.  Make a budget and stick to it. This may be a no-brainer but it's very easy for costs to get out of hand. You may budget $250 for lighting and fall in love with a $350 set of pendant lights that would be "perfect" over the island. It's "just" $100, right? But those "little" $100 changes add up.

2. Knowing the cost break downs in a kitchen remodel will help with budgeting. Here is a general run down on costs from HGTV.com:
          a. Cabinets 35%
          b. Labor 20%
          c. Appliances 20%
          d. Windows 10%
          e. Fixtures 5%
          f. Fittings 5%
          g. Other 7%

3. In addition to the costs for cabinets, appliances, fixtures, etc. be sure to add in a 20% fudge factor. Sometimes you come across a problem you didn't know existed. Sometimes the cabinets you fell in love with 6 months ago have risen 10% in cost. Sometimes you change your mind and want to make the island 6' long instead of 5'. It all adds up!

4. Before you start the process, have a frank talk about wants and needs with your spouse or business partner. Is that $350 faucet a WANT or a NEED? Crown molding is lovely, but will it make your kitchen more functional? If the plan is to sell the property, be sure you aren't "overbuilding" for the price point and neighborhood. A nice laminate will work in a $125,000 house, whereas the buyer of a $250,000 house will expect granite. Prioritize for the project and the budget.

Remodeling a kitchen can be a big undertaking, and being smart with the budget will make it much less stressful!

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