How to Budget for a Home Remodeling Project
Do you know how to budget for a remodeling project? Whether you bought a “fixer upper” or have recently outgrown your home but don’t want to move, remodeling is an excellent solution to turn a less-than-perfect space into a functional, attractive space. Republic West Remodeling has helped many clients improve their homes and increase their daily enjoyment of their living spaces.
When homeowners start having ideas about the changes they want to make, the list of possibilities can become too open-ended. Simply doing a Google search about popular renovation ideas can send someone into the throes of choice paralysis since there are so many great options out there. How do you decide on a budget when one day you want granite countertops, but then slate looks great the next day?
The answer is to work with a professional home remodeler who can narrow down some realistic, attractive choices that are both practical and respectful of the budget you established. But wait– how do you make a realistic budget for home remodeling?
The best way to make a budget for home remodeling is to get organized from the very beginning. You can pull together a general estimate of how much things cost if you search various home improvement websites online. However, these national averages are just goalposts that don’t figure in the variances of local costs of materials, labor, and the finer details of home renovation design.
Organization is key to getting hard numbers on the table. Walk through your home and write down the pain points. What tops the list of priorities? What kind of projects could resolve these issues? Once you have an idea of what you want to fix, then it’s time to get some real quotes from local contractors.
Local designers and contractors offer the advantage of offering you quotes based on the actual costs of materials and labor in your area. The cost to renovate a bathroom is vastly different in New York City compared to somewhere rural with a lower cost of living. Likewise, in Arizona, we have our own going rates that are based on the local economy.
When you schedule a complimentary consultation with Republic West Remodeling, our expert designers can itemize every material and give you a reasonable estimate of the total project cost. Our designers can also help you value engineer the scope of your project to ensure that you get the maximum benefit for your investment.
General Budgeting Guidelines
The world is full of varying financial advice to guide homeowners on the best way to make your money work for you. For renovations, experts recommend spending no more than 10 to 20 percent of your home’s overall value on a single room. This metric is to ensure that you are getting the best return on your investment. For example, if your home is worth $800,000, you should keep your kitchen budget under $120,000.
It’s also important to figure in the hidden costs of increased monthly payments if you choose to use a home equity loan to finance your renovation. Talk to your bank about what you should expect to pay if you take out a long-term loan or obtain a lump sum through a cash-out refinance. You can also explore other solutions like a home equity line of credit or a home equity loan.
All options may include fees or new monthly installment payments. Therefore, it’s important to make sure your income can handle the increased demands of loan repayment plans or an increased mortgage rage before proceeding. Consider factors like your career plans and retirement goals to guide you on the right path.
The Importance of An Honest Quote
At Republic West Remodeling, we will work with your desired budget and present you with detailed plans with quality materials. Because our Dream Assurance Plan promises that we will stick to the proposed budget and timeline as closely as we can, you can strategize your payment options with confidence.
Unlike other contractors that can surprise you with a final bill that’s much higher than the original quote, we communicate with our clients throughout the project and inform them on any changes that need to happen in materials or labor. We don’t proceed until you approve of the alterations as well.
Home Remodeling Estimate
Are you among the 58% of homeowners who want to undergo a home renovation in the next year? Then contact us for a free consultation and let us give you an estimate and design that will help you budget with confidence.