The decision to remodel your kitchen (or ANY room) is an exciting one, but it is usually made with at least a little hesitancy. There are many unknowns when first beginning your project – you have to determine an appropriate budget, find the right contractor, plan for the disruptions, and more. Many homeowners feel justifiably overwhelmed by the prospects of a remodeling project and aren’t sure where to turn to get answers to their questions. To help you with this process, we have complied a series of blog posts, this one is titled Kitchen Remodel Survival – Part 3.
Establish your Budget
Industry studies suggest that a typical kitchen remodeling project should be between 10% and 20% of your home’s current market value. As a rule, well planned projects in this price range can return up to 90% of the project cost when you decide to sell your home. For a home valued at $200,000, a good starting point for your budget would be $20,000 to $40,000 for a complete renovation, including:
- New cabinetry and countertops (About 50% of your total budget)
- New flooring (10%)
- New appliances (10%)
- New sink, faucet, and disposal (5%)
- Labor for removal and installation (25%)
As you begin thinking about your budget, use the 10% to 20% rule as a starting point to clearly set the maximum you are willing to spend on your project. Then begin looking at the value of homes in your neighborhood and try to talk with friends that may have recently completed a remodeling project. Care must be taken not to price your home well out of the market by investing much more in your new kitchen than you can hope to get back if you were to sell.
This should allow you to come up with an initial budget that is somewhat less than your maximum. For example, the budget range for your $200,000 home would be $20,000 to $40,000, and you decide that $30,000 is your personal maximum. After talking with friends and considering neighboring home values, you could potentially set your initial budget at $25,000 for your project.
Keep in mind that these estimates represent national averages and prices will vary by region of the country.