How to Create a Budget For a Kitchen Remodel

How to Create a Budget For a Kitchen Remodel

While we don't necessarily think that HGTV is always very realistic, they recently offered sound advice to homeowners looking to start a kitchen remodeling project. Understanding how to organize your time and money when it comes to big projects like this can help you keep your sanity and prevent expensive issues down the line. Here are our favorite suggestions: 

Create a Spreadsheet

Spreadsheets are a great place to begin considering the different financial and day-to-day factors of a kitchen remodel. You can organize the sheet by contractor, area of the kitchen, date, or even cost. Keeping this information on a computer instead of a notebook or binder makes it easier for sharing and makes for better communication. 

Name a Budget And Stick With It

HGTV asserts that there are three factors that make up this number: 1. how much you can afford, 2. how long you plan on staying in your home, and 3. your neighborhood. "Is it modest, or upscale?" they ask. "If you put a ruling class kitchen in a middle-class neighborhood, you'll lose money on your investment when you sell your house. Don't over-improve."

Set Aside 20% For Hiccups

Surprises happen during kitchen renovations, especially in houses that have been around the block a time or two. Water damage, faulty wiring, and bad flooring can make unexpected appearances, so it's best to have a cash reserve on hand. 

List Your Priorities

Ask yourself what's the most important and what's extra. Is function more important than form or vice versa? These answers can have longterm effects on your home's value, so it might end up being more practical to choose classic and clean elements. Lifehacker offers a quick guide to saving vs. splurging that might clarify this for you!

Don't forget to consider smaller details like the backsplash! These can totally alter kitchen decor. 

Understand Where Your Money Is Going

While labor will cost 20-35% of your costs, HGTV breaks the rest of it down like this:

  • 35 percent: Cabinets
  • 20 percent: Labor
  • 20 percent: Appliances
  • 10 percent Windows
  • 5 percent: Fixtures
  • 3 percent: Fittings
  • 7 percent: Other

A kitchen remodel can be a great way to improve your home before a sale, or it might be your first priority while settling into a new home. Regardless of why you're embarking on a remodel, the end product can have a huge impact on your residence's market value.

If you have more questions about Chicago real estate or are looking for new kitchen to call home, contact the Real Group Team!

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