It is widely understood that upgrading your kitchen or bathroom is the best place to invest money in your property. But how do you develop a budget for a renovation or remodeling project? Here are some Budget Renovation Tips to get you started.
#1 Conceptual Budget
Start at a 30,000-foot elevation view and create a broad wish list of projects you may want to consider:
- Full renovation of a kitchen
- Re-tile guest bath shower
- New vanity and countertop in Master Bath
#2 Apply the general rule of thumb broad stroke allowances
Use these base figures to get an idea of what to expect certain remodeling projects to cost.
- Complete master bathroom remodel – $7 k to $15k+
- Complete kitchen remodels – $14K to $25K+
- Redo shower – $2500 to $3500+ (Often you can look up ballpark numbers online.)
You may realize that some of the items on the wish list are not currently within the realm of financial possibility, so you may need to pare down your goals. For instance, instead of a full kitchen remodel, you may want to update the countertops only, or instead of a full bath remodel, you might just replace the vanity top and fixtures.
#4 Seek quotes from contractors
Most contractors will provide free estimates. This is a great source of information, but be careful not to abuse or take advantage of a contractor’s time if there is no real chance that you are going to move forward with at least some kind of project.
Now that you have some kind of numbers to work with, you can determine the validity of proceeding with the improvement. Things to consider include:
- What is the current value of the property?
- What are comparable properties in the neighborhood valued at?
- How much equity vs. debt do you currently have in the home?
- Based on the above answers, you can determine if your project is worth undertaking.
#6 Construction Budget
If your project is simple, maybe your preliminary work with a contractor will be enough to suffice. However, if you are undertaking something more substantial, you will need to put together a scope-of-work checklist showing all the major elements of the job. Typically, a General Contractor can assist with this. Make sure you don’t forget these often-overlooked budget items:
- Engineering (if applicable)
- Clean up and rubbish removal
- Demolition of existing space/finishes
- Floor preparation (floors may need some preliminary leveling before installing new finishes)
- Patching and painting
Now you have your budget and you are ready to go, but there is still one more line item you must account for: The unaccounted for. Even the best-made plans will encounter something unforeseen – a water leak inside a wall that caused damage to framing, an item that is suddenly out of stock, a change in code, etc. You should always, always set aside a contingency fund for the unexpected. A good rule of thumb is 15-20%. With luck and proper planning, you may never have to use it, but at least it’s there if you need it.
At Calusa Kitchen and Bath, we pride ourselves on detailed and precise planning, budgeting, and providing budget renovation tips. We believe that the more thorough we are during the budgeting and pre-construction phase, the more efficient, effective, and affordable the project will be. And that’s how we create happy and satisfied customers.