A new year is just around the corner, so the time to start creating your 2022 remodeling budgets is NOW! Whether you have a whole house remodel, kitchen renovation, or master bathroom makeover in mind, it’s important to create a budget from which you can operate during the entire process.
Why do you need a remodeling budget?
The ‘B’ word often makes people cringe, but having a remodeling budget is really just telling yourself, and anyone else working on your project, where you want your money to go. Without it, your home renovation could take a significant turn in the wrong direction.
Here’s why creating a remodeling budget before the start of your project is so critical:
- Plan a project that you can actually afford – When you know how much it will cost upfront, you’ll know if the project you’re planning will fit into your overall finances.
- It will help you choose appropriate materials – You’ve probably heard the expression “champagne taste on a beer budget.” This certainly applies to remodeling. Having a realistic budget will help you know whether your tastes and finances are in sync.
- A budget helps you set realistic limits – You may be tempted to go all out on your kitchen renovation. But, it’s important to understand how much your remodel will actually increase your property value and spend accordingly.
- You can plan ahead for unexpected costs – By planning everything out on paper first, you’ll be able to put aside some money for hidden costs. These are the expenses that come up that no one can predict ahead of time. Take the stress out of unforeseen costs by accounting for them in your remodeling budget.
What’s included in a typical remodeling budget?
Now that you know a remodeling budget is a must, let’s take a look at what’s actually in one. Here’s an example of what you can expect to see in a typical kitchen renovation budget, along with the approximate percentage of each item compared to the total budget (individual budgets will vary):
- Design (5%) – Planning the perfect kitchen is more than just gathering a few ideas from Pinterest. A professional kitchen designer can help you incorporate those ideas with modern kitchen design trends and your own personality to create a beautiful, personalized space.
- Countertops, Cabinets, and Hardware (38%) – Sometimes, materials straight from the manufacturer will do. Other times, however, custom cabinets or countertops will be needed to either meet your needs or create the look and feel you want.
- Appliances (10%) – Your designer can help you decide whether you need all new appliances or whether the ones you already have will fit with the new design.
- Flooring and Lighting (10%) – These two items are key features in any kitchen design. Look for flooring options that will hold up to the amount of traffic your kitchen gets and choose lighting that will enhance the space.
- Plumbing, Faucets, and Fixtures (5%) – There are plenty of options to choose from but your designer can help you decide which ones will fit your budget and overall style.
- Windows and Doors (5%) – Depending on the extent of your renovation, you may be able to utilize existing windows and doors. However, new ones may be needed to improve function or to fit with the new design.
- Labor and Installation (17%) – Renovating a kitchen is hard work and not likely a task you want to tackle yourself. When you hire a professional remodeling company to do the job, you spend more money upfront but save money in the long run.
- Other (10%) – Remember to plan for contingencies so a surprise expense doesn’t become a stressful one.
Putting your home renovation budget to work
Now that you know what you will be spending your money on, it’s time to choose who will make your remodeling visions become a reality. If you’re looking for a remodeling contractor in Orange County, we’re happy to help!
Sea Pointe Construction has been meeting the remodeling needs of Orange County residents for over 30 years. From outdoor living and California rooms to whole house remodels and bathroom renovations, our design-build team does it all! When you’re ready to start planning your 2022 remodel, give us a call at (949) 861-3400 or fill out the form below to schedule your complimentary design consultation.