The True Costs of Remodeling a Home in Phoenix
Most remodeling contractors today agree that the cost of a home remodeling project depends on two key factors: size and scope. In other words, how large is the area (or areas) you want to change, and how major do you want the changes to actually be?
For example, remodeling a small guest bathroom is obviously a simpler proposal than adding a new extension on to a house. Similarly, updating your kitchen countertops is easier than reconfiguring the entire room – a task that could potentially include replacing cabinetry, appliances and other surfaces.
So, how much is a Phoenix home remodeling project really going to cost you? In addition to size and scope, the overall cost also needs to factor in areas including labor, supplies and materials cost in your specific area or market and whether you hire a professional team.
Here are some of our suggestions to help you better determine your approximate home remodeling cost:
- Ballpark it. Initially, it’s best to get a pretty good grasp on how much your remodeling dreams will actually cost. Typically, major upgrades, such as a kitchen remodel or a family-room addition, can run anywhere from $100 to $200 and more per square foot. If you are using a remodeling contractor, discuss your project with them to get a rough idea of costs.
- Decide the maximum you want to spend. Once you’ve come up with a solid game plan, the next question is whether you have the money. If you’re borrowing, you will need to assess how much a bank will lend you and what that loan will add to your monthly expenses. In general, homeowners tend to take advantage of three basic loan options: a cash-out refinance; a home equity loan; or, a home equity line of credit (HELOC). For the majority of homeowners, the best way to borrow for a home improvement is a HELOC – a loan that’s secured by your home equity, which means that it qualifies for a lower rate than other loan types, and you can deduct the interest on your taxes.
- Gather quotes. Before seeking bids, as mentioned above, determine exactly what you want, right down to the kitchen countertop material and the kind of sink faucet you want. By specifying these details up front, you can ensure that prospective contractors are all pricing the items competitively. Get recommendations from friends, neighbors and others you trust. Don’t forget to ask to see their recent work, check references, as well as look at online websites that provide customer reviews of those contractors.
- Set priorities and adjust plans to fit your budget. Unfortunately, dreams and budget are not necessarily always in alignment. Take time to carefully scale down your dream when necessary — chances are you’ll end up pleased anyway. Be sure to ask your contractor for suggestions on reducing costs. Possibilities of areas to cut might include: low-cost alternatives, such as laminate countertops instead of granite. Or, you also can consider making a project smaller – like cutting a guest bath addition from 90 square feet to 70.
The number one home remodeling nightmare is that the final cost on a custom remodeling project has little resemblance to the upfront cost that was presented when the initial contract was signed. At RWR, we call this “cost creep.” If your budget is not handled correctly, cost creep will become an absolute fact of your remodeling project. Contact us today. We provide a breakdown of project scope, line-by-line, giving each customer Cost Assurance.