Renovating a kitchen can seem like a daunting task, especially when it comes to knowing how much it’s going to cost and how to create a budget. Whether you’re renovating to increase your market value or to create a more enjoyable and functional kitchen for your family, these tips will show you how to budget for a kitchen remodel.
Decide how much you want to spend
When doing any large scale kitchen remodel, you want to make sure that the money you’re putting into your home will give you a return on investment when you decide to sell. A good rule of thumb when remodeling your kitchen is to keep your budget between 5% and 15% of the current value of your home, the national average being 8%. By staying within these margins, it’s likely that you’ll be able to increase the value of your home while ensuring you get a return on investment when you sell.
Know how you’re going to finance your kitchen remodel
There are many ways to finance your kitchen remodel, the most popular being home equity loans, which are tax deductible. If you’re planning on getting a loan, remember to factor in costs such as loan origination and interest fees. Of course, you can always save money if you know a kitchen renovation is something you want to do in the coming years. As always, talk to a financial advisor when making large financial decisions.
Make a plan and stick to it
Once you’ve decided how much you want to spend, you want to make sure you create a design plan and stick to it throughout your kitchen remodeling process. It can be tempting to add on extras as you go, but these changes can add up quickly! To make sure you don’t go over budget, look at your options and know what you want before you get started. You can stop by our Twin Cities kitchen showroom location for ideas and price ranges on cabinets and kitchen renovations. If you like what you see, a designer will come to your home to measure your kitchen and will prepare a detailed design and cost estimate. Your designer will help you choose from a large number of options available to make your kitchen uniquely your own!
Plan for unexpected expenses
You are likely to run into unexpected problems during the course of your kitchen remodel. For example, houses that are more than 50 years old may need new electrical upgrades in order to support new lighting and appliances. You don’t know what problems you might run into, so it’s best to plan ahead so it doesn’t break your budget. The National Kitchen and Bathroom Association suggests setting aside 20% of your budget to cover these unexpected costs.
Think energy efficient
Energy efficient appliances might cost you more upfront, but they can help save you hundreds of dollars a year. Making a little extra room in your budget for energy-efficient appliances can help you save a lot of money in the long run, especially if you’re not planning on selling your house anytime soon.
Little extras (like going out to eat)
Remember that while your kitchen is being remodeled, you’ll most likely be eating out more often, and will need to budget accordingly. Or perhaps you’d like to live somewhere else while your kitchen is being remodeled, such as an apartment or hotel. Remember to keep these extra expenses in mind when figuring out the budget for your kitchen remodel.
How we can help
At Kitchens Made Simple, we know that your kitchen is vitally important to the livability of your home. We also know that designing a kitchen to fit your budget can seem daunting. We are a dedicated team of professionals, and we will help you with all the details to make the process of planning and building your dream kitchen as affordable and simple as possible for you. Give us a call today for a no-obligation consultation!