Keeping Your Kitchen Renovation Under Budget
The industry experts will say that a kitchen remodel yields the highest return on investment of any room in the house. The problem is when you are doing any remodeling project, especially a kitchen remodel, it is very easy to get carried away and go way over your estimated budget. The average kitchen remodel costs somewhere around $40,000 but can be as high as $100,000+. So how do you know if you are over spending on your kitchen renovation?
The first step is to take a look at comparable houses in your neighborhood. Try to determine the value of your house relative to the other houses in your neighborhood. If comps in your neighborhood are worth $300,000 putting in a $100,000 may not be the smartest idea. So it is important to know the value of your house and the average selling price in the neighborhood. While a high dollar kitchen may work well for you now, it may end up costing you money when you go to sell the house.
Make sure you do your research. Labor is going to be one of the most expensive components of your kitchen renovation. Price it out to several different reputable contractors and try to bundle projects were possible to maximize the savings. Any work you can do on your own will just add money to your bottom line. Depending on how high end you are planning on going, the cabinets and countertops are going to be the next biggest investment (really high end appliances can also be up there). Shop around for your cabinets, and don't snub your nose at lower priced cabinets. Focus on the features and the quality of materials. Ironically, some of the lower priced cabinets will have the same, if not better, quality as the name brand (the difference is, you are not paying for the high overhead).
When all else fails, call in an expert. There is nothing wrong with calling in a real estate agent to get an idea of what your house is worth and what a remodel will do to the value. A good real estate agent will be able to tell you a ballpark of what you should spend to stay within the price range of your local area.
So before starting your kitchen remodel, take the time to do some research, come up with a solid plan, and stick to your budget. If you can do that, you will not only get a great kitchen, but you will also add value to your house.
The first step is to take a look at comparable houses in your neighborhood. Try to determine the value of your house relative to the other houses in your neighborhood. If comps in your neighborhood are worth $300,000 putting in a $100,000 may not be the smartest idea. So it is important to know the value of your house and the average selling price in the neighborhood. While a high dollar kitchen may work well for you now, it may end up costing you money when you go to sell the house.
Make sure you do your research. Labor is going to be one of the most expensive components of your kitchen renovation. Price it out to several different reputable contractors and try to bundle projects were possible to maximize the savings. Any work you can do on your own will just add money to your bottom line. Depending on how high end you are planning on going, the cabinets and countertops are going to be the next biggest investment (really high end appliances can also be up there). Shop around for your cabinets, and don't snub your nose at lower priced cabinets. Focus on the features and the quality of materials. Ironically, some of the lower priced cabinets will have the same, if not better, quality as the name brand (the difference is, you are not paying for the high overhead).
When all else fails, call in an expert. There is nothing wrong with calling in a real estate agent to get an idea of what your house is worth and what a remodel will do to the value. A good real estate agent will be able to tell you a ballpark of what you should spend to stay within the price range of your local area.
So before starting your kitchen remodel, take the time to do some research, come up with a solid plan, and stick to your budget. If you can do that, you will not only get a great kitchen, but you will also add value to your house.
