Can I Afford to Remodel My Kitchen?
If your kitchen is looking tired and you’re ready to make a change, this is most likely the first question on your mind.
We believe the answer is almost always yes, although some thinking ahead and planning will help to clarify how you can get there.
It may not be a total overhaul of your kitchen, but we believe most people can refresh their kitchen within your budget! It all begins with thinking through our suggested steps. Here’s how to start:
1. Think about your five year plan.
If you’re planning to sell your home within the next five years a total overhaul of your kitchen may not pay off. According to the Remodeling 2016 Cost vs. Value Report (*www.costvsvalue.com), a minor kitchen remodel replacing countertops, flooring, appliances, hardware, sink and faucet along with refacing cabinets will cost an average of $22,775. With this project a homeowner may be able to recoup an average of 74.8% or $17,044 when selling their home.
If you are planning to stay long term it may be worth it to spend more and make your kitchen your own. Keep in mind that your needs may change in the next ten years and go for styles that are classic and more likely to stand the test of time.
2. Decide how much you are willing to spend.
Take a look at your finances and explore your options for loans. Maybe it makes sense to use savings or a low interest rate loan may make the most sense for your family. Either way, you want to be prepared and know how and how much you are going to pay.
3. Set aside at least 10% of that budget for unexpected costs.
Inevitably unforeseen issues will arise. No matter how experienced the contractor may be, the ability to see through walls or into the future is not in the job description. Setting aside between 10-20% of your overall budget will help protect you from expensive surprises along the way.
4. Make a plan with your contractor.
Be clear about your goals, priorities and must-haves. Spend your money on what matters to you while understanding that some of the most important pieces of your remodel are things you cannot see. Structural changes, electrical and plumbing are costly but cutting corners will most definitely cost you more in the long run.
5. Stick to your budget.
It is easy to be excited by all the possibilities when you start selecting finishes for your new kitchen. We can all be tempted to try the next new trend. Individual changes may seem small at the time but a few can quickly add up to more expense than anticipated.
While no project is stress-free, following a budget plan will make the outcome happier for you and your contractor.
*© 2016 Hanley Wood Media Inc. Complete data from the Remodeling
2016 Cost vs. Value Report can be downloaded free at www.costvsvalue.com