You have a dream of remodeling your home to add new functionality and to give it a completely different look. But, every remodeling project comes with a price tag. When you are budgeting for a remodel, you need to consider several things before coming up with your final amount.
Determine your budget before the remodel begins. This might seem counter-intuitive, but many homeowners start remodeling projects without knowing how much they want to spend. They get into the project and then try to decide on their final budget numbers. That can actually slow down a project or stop it all together.
Getting the Numbers Together
The first number to come up with is how much you are comfortable in spending. You may have to come up with the cash to cover the project or find a way to finance it. Either way, you need to know how much you are willing to spend before you start spending anything. That way, you know what you are getting into before you start ripping down walls and moving pipes.
Next, talk with a contractor like Alair Homes Delta. They can look at the extent of your project and give you a rough ballpark estimate of how much it will cost. Don’t be surprised that their estimate is higher than what you thought it would be. While the prices may be higher than you expect, a reputable contractor can help guide your project and alleviate stress.
Once you know what you want to spend and what your project would cost, you need to make some decisions. Are you comfortable increasing your budget to what the contractor estimated? If not, do you want to wait to save up the money or do you want to reduce the scope of the project to make it more affordable?
Plan for Contingencies
Almost every remodeling project is going to have unforeseen situations which can impact the budget. It can involve making structural changes to the building, adding new electrical circuits, or needing to replace something that was not in the plan. That is why every remodeling budget needs a 20% contingency fund in place. That fund should be used only for unexpected issues and not for upgrades.
Now, do you add 20% to your budget or set aside 20%? The answer is completely up to you. Let’s say you have a budget of $100,000. You can add an additional $20,000 for the contingency, making your final budget $120,000. Or you can set aside $20,000 for the contingency, using the $80,000 as your starting budget. That would make your final budget $100,000.
Make Sure Everyone Is On the Same Page
You need to have a clear idea of what your budget is covering when it comes to a remodel. You may think your budget covers the renovation costs plus the costs of new furniture and appliances. Your contractor may only be talking about the costs of renovations with nothing left over for furniture or appliances. Taking a few minutes to ask questions about the scope of the project will clear up any misunderstandings down the road.
Some of the conversations you will have about your budget may be awkward or uncomfortable. But, having those conversations will prevent headaches down the road and make your project a success.