How to Establish a Budget for Your New Kitchen Remodel

White cabinetry in modern kitchenThe dream of most homeowners is to have their kitchen remodeled, upgraded with new countertops and equipped with modern appliances without spending too much money. If you are in for a kitchen renovation, then it’s important to ensure that your dream kitchen is set a realistic budget before you start looking for kitchen ideas or shopping for appliances. Be a smart homeowner by sticking to a budget and not overspending. A kitchen can make or break a good first impression and can also greatly affect the value of your home- simply because it is the heart of a home. Use this guide to help you establish a budget for your new kitchen remodel.

Understand What the Average Kitchen Remodel Costs in Your Neighborhood

Before you set your budget, it is crucial to compare the cost of remodeling to some homes in the neighborhood that have undertaken a remodel. This will depend on whether you want a major or minor kitchen renovation. Your remodeling scope and costs should be comparable with your neighbors to give the competitive advantage on the market. The type of renovation that you intend to undertake should be in line with the type of your home. Keep the project balanced to what is characteristic for your neighborhood.

Make a List of Priorities

There is a wide range of components required in a kitchen, all of which differ in the degree of cost. Having a budget in place means you are ready to make compromises. If you want an environmentally friendly kitchen, it’s important to know that you have a limited choice of materials. It could also be that you want marble countertops but can’t afford the installation costs. If you consider yourself to be an at-home chef, then you will probably require high-end appliances and you should, therefore, be ready to allocate more money towards these appliances. Be realistic about the components that you need and those that you want. In addition, you should know the varying proportions in the costs of these appliances.

Prepare for Unexpected Costs

Unexpected costs are inevitable in a kitchen remodeling project and can come up at any time. You, therefore, need to allocate about 20% of the total amount for unexpected expenses. These costs will cover for bad electrical wiring, water damage, plumbing challenges or any unforeseen that will require additional labor and workarounds. Budgeting for these unforeseen costs is crucial if you want to achieve what you wanted without sacrificing some crucial plans.

Choose How You Will Finance the Kitchen Remodel

You should be able to determine the right course of action for paying for the project. This can be done by sitting down with your family and even your financial advisor. Getting a big loan is not always the only way to finance such an important project. It is smart to save before you spend. However, if you don’t have this option, speak with your mortgage broker to understand the best way to finance your kitchen remodel. Before you meet these parties, have a general idea of the overall budget amount, your home’s valuation, your income, and other expected costs.

Whether you are just adding new appliances or completely remodeling your kitchen, developing a budget and sticking to it will keep you accountable for unplanned costs and also, enable you to avoid losing control of the project. In this way, you will be on the right path to achieving the kitchen of your dreams. Get out of your comfort zone, and do your research to find out the costs of different products and services that you’ll need.

Use our Pricing Calculator to get a quick snapshot of your estimated custom cabinetry cost