How to Set a Realistic Budget for Your Home Renovation
Often times when homeowners are asked what is your budget, this question sends them into deep thought. Hmmm, what IS my budget and how do I set a realistic budget for my home renovation?
Your home is your sanctuary… a place of retreat.
If it has not been updated in the last 15-20 years or getting ready to tear down and start fresh, you may be scratching your head and unsure where to begin. The questions are what to tackle, when to tackle, where to improve and how much to spend on this venture?
So back to the initial question, the answer is almost always not a realistic one. This is completely understandable whether it’s a first time renovating or not. The cost of construction, materials and professional help does fluctuate.
La Casa Azul Design
1. Set Some Priorities
Among the obvious first steps are your priorities.
If your home is dated, you probably want to take a sledgehammer to the whole first floor. Prioritizing where money will be spent is your first move.
Think of the areas you spend the most time in and create a list of rooms and changes you wish to renovate within that space.
It seems simple enough, right?!?
2. Categorize Your Costs
Cost categorizing is a little more complex.
This is where you assign an estimated number to the items you are looking to remodel or have re-built. The kitchen most always has the highest price tag, so start there.
On average a high-end Kitchen is going to be in the $100k and beyond range.
An easy way to determine where you may end up is to get a rough estimate for appliances. Those are the most accessible items to obtain pricing for and on average should consist of 20% of your overall budget.
An example would be if you are spending 35K on appliance packages from Sub Zero Wolf then be prepared to spend in excess of $100k to have a high-end kitchen depending on the size of course.
To move on to the not so obvious places of your home like painting , flooring and millwork , and those architectural details that make a remodel so amazing , it can be a little more challenging.
Contractor prices are going to vary and depend on your project location.
These prices can be anywhere from cost per square foot and or linear foot for the labor only. As well as a linear foot cost for some millwork. This can often only scratch the surface of items that need to be covered in a remodel, however it can start to act as a jumping-off point when gathering quotes and hiring your team for your renovation.
If you are working with a professional designer and a builder, they are usually working behind the scenes to estimate these costs based on the design. Often the designer can make adjustments to achieve the desired results at a more cost-effective price.
Estimated labor costs will be difficult without a design in place. Often times client contact the contractor first , but this is in effect working backwards.
3. Prepare for the Unexpected
As you continue on with your planning, gathering information, getting a better understanding of what is required, there are some expectations that will translate to unexpected costs.
There are two major things that are generally missed in creating any budget for your renovation. The first is a contingency budget.
This should be at least 5-10% of your budget at a minimum to account for the unforeseen events that occur during construction.
The second would be costs to vacate the property. More often then not, you will be required to move out of the residence for a period of time during the renovation process.
The demolition is usually so messy and unbearable that no one wants to be present for it.
After your kitchen has been removed, you will not be able to prepare food for 3-4 weeks at minimum. Furthermore when the paint crew arrives, the fumes will not be something you want to deal with.
The cost would need to be estimated for your stay at another residence, as well as the cost of removing your personal belongings from the residence.
These are some of the tools that will be required to set up a realistic budget.
Renovating your home should be fun, even through some of its challenges with setting a realistic budget and keeping it, which is why we exist here at La Casa Azul.
Here at La Casa Azul we specialize in custom home interior design and renovating older spaces and turning them into your dream. If you’re looking to start new build or a home renovation project and don’t know where to start, we’d love to help!
We offer complimentary calls to anyone looking to begin a project that doesn’t know where to start. We’ll talk with you about your vision and the goals for your home, and offer our best services to get you on the way to your well-appointed home.
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Exclusively for homeowners in Southern Orange County, California