How to Budget for Kitchen Renovation

Kitchen renovation is a project that you do not decide to undertake on a whim. Unless you happen to be made of cash or chance upon the lottery jackpot, kitchen renovation requires much planning and preparation. According to HomeAdvisor, the cost of a kitchen remodel can range from $75 to $250 per square foot these days.

Given the high cost of kitchen renovation, homeowners still decide to go through with it for aesthetic, practical and social reasons, explains North Star Kitchen and Bath Remodels (https://northstarkitchenandbath.com/). A kitchen remodel instantly gives a home an updated look, raises the value of a house, and improves a home’s general ambience, especially because most families spend the most time together in the kitchen.

According to an article on BNN Bloomberg, a kitchen renovation could raise the selling value of a house by 12.5% as most homebuyers believe that the kitchen is one of the most important parts of a home.

 

How to Budget for Kitchen Renovation

  1. Decide on the scale of your kitchen renovation.

A kitchen remodel may be as small as a paint job or updating the doors of your cupboards; or as big as stripping it off of every fixture and appliance and making everything new. Obviously, the bigger the project, the more expensive it would be. Once you have a list of all the things you want done in your kitchen, it is best to seek the help of a contractor to help you plan your costs.

  1. Make a record of both big and small details.

In any home improvement project, every detail, either big or small, will make a significant contribution to the overall cost. Make a detailed list of every material that you will need for the project and prepare a price comparison across three brands or stores where you can get each. This may sound like a tedious process, but it will help you come up with the smartest budget plan.

Analyze your list for items that are necessary and those that are just “nice to have”. For example, you will definitely need a sink with a good plumbing system but will you need a touch-less faucet or is it simply a luxury you could omit? Weigh which of the upgrades are your non-negotiables and which ones you could reconsider should there be excess funds.

  1. Set your budget and payment plan.

Once you have accomplished step #2, you will have a clear picture of whether or not you can afford the project, if you would need to undertake the renovation in phases or if some adjustments are necessary. When setting your budget for kitchen renovation, understand that unexpected expenses can sprout up along the way, so it is prudent to include a buffer of about 15-20% in your plan.

Next, determine how you plan to pay for your kitchen renovation and weigh its consequences. Some homeowners take advantage of the equity in their home while some resort to financing plans and, of course, there are those who go the traditional route of paying out of pocket.

The third choice still proves to be the soundest option as you do away with paying monthly interests, but ample caution must be exercised so that the project does not get in the way of other family expenses such as bills, tuition fees and mortgage.

  1. Start your search for a contractor.

You may have already hired a contractor in step #1; in which case, you just need to determine whether or not you’re satisfied with the job s/he has done, enough to have him/her stick around throughout the project. A contractor will play an extremely crucial role in your kitchen renovation and will actually determine the success —or failure— of the project.

Emerald Kitchens + Design recommends the services of a general contractor for 5 major reasons:

  • Can and will take care of EVERYTHING you need to get your kitchen renovation done, from sourcing the materials to hiring qualified workers and even to picking out the best color scheme for your home
  • Has design expertise to assist you with the small and big details of the project
  • Has insurance to protect you in case something goes wrong
  • Will get the job done more quickly versus if you chose to DIY
  • Is skilled, licensed and qualified

Don’t settle on the first contractor that you meet. Get recommendations from family and friends, especially those who have had major home improvement projects in the past couple of years.

  1. Stick to the plan.

A kitchen renovation project is not the best place for a fickle mind. Wanting to make changes once the project has taken off may result in the costs ballooning rather uncontrollably. While some tiny adjustments here and there may be okay, a big shift will translate to a huge adjustment in expenses and may derail the progress of your project.