In the last two blogs we reviewed eight factors to consider when establishing a kitchen remodeling budget. This blog will review putting it all together.
One of the first keys is finding the percentage of your home value you should use as a budget guideline. A typical range of percentage, kitchen cost to home value, is 10% to 25%. To maximize your investment 15% to 25% is a good range. For a kitchen remodel of the size and scope that includes new appliances, cabinets & counters, plumbing & electrical, and finishes such as painting, wood trim, and flooring anything less than 15% is probably not realistic unless you live in a high value home (such as a million dollar home). If resale value is important it is probably best to keep the project within 20% of current home value.
Cabinet and counter selections vary significantly. The more custom design and more unique materials you are using, the higher your percentage base should be. Appliances also vary significantly and if you can reuse some of the existing appliances this is a good savings. You can also adjust the percentage up or down on the basis of electrical, plumbing, structural changes, size of the kitchen and the other construction and design factors discussed in the earlier two blogs.
Your goals and priorities are also factors in the cost adjustments. Obviously, if having a commercial style gas range, room for two cooks, more windows and natural light, or other luxuries are priorities, than construction costs will increase. If the floor plan is changing significantly and electrical and/or plumbing services are being relocated, again a higher percentage is called for.
Finally there is item #8 in the last blog, funds available. The kitchen remodeling budget has to work with the funds available. Most professional remodeling companies can help you work with any reasonable budget making suggestions to maximize your goals versus budget and your return on investment.
And last but not least, consider doing the remodeling for yourself, not just for resale. You are going to live there, you are bearing the current cost, you should construct a project that you enjoy and are satisfied with. That being said, don’t go crazy. Remodeling your kitchen, or your home, well beyond the values in your neighborhood is not a good long-term financial decision. Of course, if this is your dream house and you plan to spend your life there, you might want to make it all it can be. This obviously is a contradiction. One solution does not work for everyone and you have to resolve what is best for you and your family.