Of any home remodel, your kitchen is one of the most likely to bring you a great return on investment.
It’s easy to overspend, so it’s important to consider a few things before you start. Luckily, we’re here to help you learn about putting together a great budget, along with some of the best kitchen remodeling ideas for 2022.
Read on to learn more about kitchen remodeling financing and everything else you need to know about the process.
1. How Much Do You Want to Spend?
The first step you need to take is setting a budget. This might sound obvious and even easy, but it’s harder than you might think. There are a few things you need to consider when you’re setting your budget:
- Your wishlist (try to use the MoSCoW method to help prioritize your list!)
- What you can afford
- How long do you plan to stay in your home
- Your neighborhood
Determining whether you want a “simple” or “luxury” remodel may determine whether you should budget 60k or over 100k for the same kitchen. It’s important to make sure you can afford this, though. That’s why looking at your wishlist, and then your budget is a great help.
You’ll be able to see what you can and cannot afford, and then you’ll be able to restructure your plans from there.
It’s also essential to consider just how long you plan on staying in your home. If you plan on selling within five years, then this remodel should be considered a real estate investment, meaning you should only spend what you expect to get back (or at least close to it). That being said, there are still things you may want to splurge on and that is OK! If you’re going to remodel the kitchen, it will go a long way to show a potential buyer that you spared no cost to make the kitchen beautiful. If you plan on living in your home longer than that, though, you should go with the options that make you and your family most comfortable.
Finally, your neighborhood. You will want to keep in mind surrounding home values when planning your remodel budget. If ROI is an important factor in your decision making process, then, springing for luxury upgrades isn’t going to be the smartest decision. You’ll end up losing money when the time comes to sell.
2. Do You Need Kitchen Remodeling Financing?
Are you going to need kitchen remodel financing from Cornerstone Remodeling?Finalizing your design, the pricing, and analyzing your “bang for buck” may mean spending a little more than your desired budget. When that happens, know that there are options to easily keep the make-or-break features in your design without losing out. Cornerstone Remodeling offers a few different financing options at no additional cost to help our homeowners achieve the remodel of their dreams.
3. Have an Emergency Fund
Once you have an exact breakdown of your costs, add another 10-20 percent of the total for emergencies. You’re going to encounter surprises along the way — especially if you live in an older home — and it’s best to simply plan for the unexpected.
Whether it’s ripping out walls to find out-of-date wiring or unexpected wood rot under a floor that you thought you could simply refinish, leave yourself room to work with. If no surprises like this pop up, you may want that extra fund to splurge on some last-minute selections!
4. What Are Your Priorities?
You have your wishlist, but what are the non-negotiables on it?
Do you want new appliances or cabinets? How about a specific lighting plan or flooring? Whatever it is, make sure you account for the extra costs in your remodel budget.
If you run into unexpected snags while working on everything, you’ll know that you don’t have to compromise when it comes to those specific things. On the other end, you might want a bunch of luxury add-ons, but those small expenses start to add up. You might be able to do things differently to help save money along the way.
Working with a contractor like Cornerstone Remodeling can help you work through common problems like these.
5. Are You Staying in Your Home or Elsewhere?
Next, are you going to stay in your home during the remodel? Living somewhere else while work gets done is great for lessening your stress levels, but it’s important to account for the cost of accommodations, along with storage and/or moving fees.
Staying is your other option, but it’s important to know that it can be a stressful time — especially if the remodel takes a while to complete. Setting up a temporary kitchen in a different room is a great idea, but make sure you remember to account for those costs in your budget.
6. Remain Meticulous
For some people, keeping a spreadsheet for a remodeling budget really helps. But did you know that Cornerstone Remodeling has a project management software that keeps you in the know every step of the way? All of your costs, change orders, and allowances are tracked minute-by-minute meaning that you always know where you are budget-wise. Whether it’s on a daily or weekly basis, logging into your customized job portal allows you to see how much you’re actually spending and will keep you on track throughout this process. If you see yourself going over costs, it’ll be a lot easier to stop it.
Also, be sure to factor in the cost of eating out. Even if you have a temporary kitchen set up, you’re not going to want to cook every single night! Fit this into your budget before you start spending the money so you at least have a number to stick with throughout the process.