Dec 17 2014

How to Create a Budget for Remodeling

Kitchen Remodel2015 is coming up fast and during this time, we start thinking about the things we want to accomplish in the new year. More often than not, we set too many or unrealistic goals for ourselves that we are not able to meet. Sometimes, the problem is that the goal is too big but most of the time the problem is that there is not enough guidance or advice for those trying to accomplish completely realistic goals.

One goal that many people think is not in reach can actually be accomplished easily with careful planning and budgeting. That goal is remodeling a room or section of your home. With a few months of saving, planning and careful research, you can build the kitchen, bathroom or family room of your dreams. In order to achieve this goal, follow four basic steps to end up with a remodel that is both beautiful and budget friendly.

Research Costs

Everyone knows you can spend as much or as little on a room as you want; the sky is the limit (more like the wallet.) What is important for homeowners is to consider the kinds of projects you want to complete and the costs associated with them. There are many resources available to outline the ballpark costs of remodeling a kitchen or great room or any other room. Resources include places like HGTV or DIY with their helpful websites or magazines like “Remodel” or “Better Homes and Gardens.” Looking at comparable projects¬†helps you¬†find out whether your dream kitchen will cost $25,000 or $50,000. Though these estimates can vary, they are a great place to start and to find out whether your goal is within your reach any time soon.

Consider Payment and Financial Options

After figuring out what kind of money your project will cost, the next step is to look at the finances you have at your disposal. If you intend to remodel with cash, the answer is easy. You know exactly what is available and what you need to save up.

However, for home remodels, there are other options such as borrowing from a bank in order to invest in your home. This option requires speaking with your bank about the kind of money you can borrow and what you can borrow against. Though there are many options, typical home remodel financing revolves around home equity loans or refinancing options. The amounts that can be borrowed vary according to each situation and must be discussed with your financial institution.

Regardless of which direction you go, the money you will have at your disposal is a set sum that you must stick to in order to be financially healthy and safe.

Compare Contractors and Get Quotes

It definitely pays to shop around and shopping around with different contractors can save you a lot of money if you are smart about your research. First, you can find reputable contractors through services like Angie’s List or Yelp by looking at reviews. Next, you can look at their websites to see recent work and decide whether they are the right type of contractor for you. Finally, you can contact them to receive no-obligation quotes in order to decide whether they will be able to get the work you need done at the right price.

But with all this preparation out of the way, there is one last step that you must remember and that step is the most significant of all.

Dreams versus Reality

Remodels, like other big projects can have complications. With anything as significant as a home remodel, there can be many roadblocks and unforeseen issues. This is especially true for older homes. When creating your budget and looking at the projects you want to undertake, always remember that they will cost more than you think they will and that you may not be able to get everything you want. You can help fight this by prioritizing your projects and your needs versus your wants. Also, you can engage the contractor you decide to go with to help save you costs and make them an ally in your remodel process.

With these steps you too can achieve your new year’s resolution of a home remodel. Just take the time to plan, research and stay realistic in order to realize your dreams.

Posted by: Reliance | Categories: Home Design, Inspiration