Your Remodeling Project Is Important: How to Craft the Perfect Budget
By fiderioandsons Feb 26, 2016
Remodeling projects are exciting but can be a lot to plan for without the right tools. Crafting a budget and creating a sheet you can use as reference throughout the process will help everything run a little smoother and avoid any confusion. Check out this article for a checklist to help you craft the perfect home remodeling budget.
1. Min and Max Willing to Spend
As you start to create your budget it’s important to figure out how much you are wanting to spend on the project. Know the maximum amount you can spend and stick to it so you can determine what areas you can splurge and how much to spend on the elements that need to be done. Also, knowing the minimum you are wanting to spend will let you decide on the size of the project. For example, you decide you are willing to spend a maximum of $100,000 and a minimum of $50,000. As you are create your budget sheet, you will have a better understanding of the areas you can splurge on or if you need to be a little more cautious with your remodeling options.
2. Break Down the Costs
To break down the costs, you need to decide what rooms you are remodeling and what components in those rooms will be updated. Maybe you want to remodel your bathroom fixtures, your kitchen tile and living room flooring and walls. You should break down how much you are wanting to spend on each component as well as an estimate of how much you are wanting to spend on each room if you are remodeling multiple rooms. According to HGTV, here’s an average breakdown of price percentages:
- 35 percent: cabinets
- 20 percent: labor
- 20 percent: appliances
- 10 percent windows
- 5 percent: fixtures
- 3 percent: fittings
- 7 percent: other
3. Choose Your Priorities
When planning your remodel, you need to consider what areas are the most important to focus on to make sure those come first when budgeting. Do you need new appliances, new cabinets or new flooring? Write down your priorities so if unexpected costs occur you’ll still get the important items on your list completed.
4. Research Prices
This may seem obvious but often times this step can be overlooked and creates expensive confusion down the road. You planned it all out but somehow you are way over budget and now either have to dip into your savings or only get half the projects done you were trying to accomplish. Dig around a little to see what the average costs of certain items may cost and remember to factor in the amount for labor. As you get a general idea of these prices, add them to your sheet and know they are not exact. You can even make a section for “estimated costs” and “actual costs” will help you better budget your remodeling project. Additionally, if you have a general idea of what components you want to remodel, speak with a remodeling contractor who can give a better understanding of specific prices.
5. Factor in the Unexpected
Remember to factor in the unexpected. You will more than likely experience surprises in the project out of your control. According to HGTV, several different surprises can occur like when you rip out your walls and discover your electrical wiring is out of date. Or you pull out your dishwasher and discover the floor beneath it is rotten thanks to a water leak you didn’t know about. So be sure to leave a little room for when these issues seem to arise.
Also, you may find that your project requires you to vacate until completion which can add costs to the budget as well.Factor in eating out for meals or the costs of staying in a hotel into this portion of the budget because this can start to add up quickly.
7. Room for Extras
You have already broken down the costs and set aside some money for the little surprises but you should also take a percentage out for “extras.” You couldn’t decide early on whether you wanted to replace your entry way door or if you wanted to replace the windows. Replacing all your windows around the house can cost significantly more than replacing the door so having that extra budget aside will help with those last minute decisions.
As you craft your budgeting sheets, you’ll probably find your own components to add. Do a lot of research, regularly communicate with your contractor, have fun with the process and enjoy your new home. For more information on how to prepare for your home remodeling project, take a look at the checklist below.