Budgeting for a kitchen or bath remodel can be challenging. One reason is that we don’t do projects of this magnitude very often, so it’s sometimes surprising to see how much prices have changed since the 1990’s! Add to this the fact that most of us are not experts in kitchen and bath design. We are not familiar with today’s design trends, products, and construction costs.
In this blog, we are going to give you some useful guidelines to help you start this process. But before we start, here are two important considerations that will influence your budget:
So now, let’s dig into the budgeting process.
One way of establishing a budget for your kitchen remodel is to base the budget on a percentage of the value of your home. Our experience has shown that a good range to start with is between 10 – 25% of the value of your home.
Another way of budgeting for your remodel is to look at historical data, as gathered by the National Kitchen and Bath Association (NKBA). According to a recent presentation on 2021 design trends, seventy percent of kitchen remodels involve medium sized kitchens (150 – 350 sq-ft). Of these medium sized kitchens, 63% cost between $25K – $75K. For large kitchens (350+ sq-ft), homeowners tend to spend more: often between $100K – $150K.
Ultimately, your project budget should be based on your neighborhood and comparable homes in your area, balanced with your goals for the space. Essentially, putting too much into a home improvement project can affect the rate of return on your investment. Likewise, underspending may not give you the results you were hoping for.
Once you decide what your budget is, we strongly recommend that you set aside 10% of that amount as a contingency. If you have decided that your budget is $90,000, set aside $9,000 for contingency, resulting in a net budget of $81,000. Once walls start coming down, there is no telling what surprises you may find behind them – and some of those surprises can be expensive to address. It’s always best to be prepared.
If you’re fortunate enough to avoid construction-related surprises, those contingency funds can come in handy for something that is high on your wish-list, whether it’s an appliance with features that you’ve always dreamed of or a stunning (but really expensive) light fixture for over your island.
If you remain disciplined enough to save your contingency until the end of your project, pat yourself on the back and treat yourself to some new dishes, cookware, or home décor. Or save it for your next project!
Once you have your gross budget firmed up, the next thing we recommend is educating yourself on how much each element of a kitchen remodel will cost and choose products that meet your goals while staying within your budget.
There are many models available for helping you arrive at a cost breakdown for your project. Of course, every project is unique. For example, not every project will involve moving walls – be we are pretty sure most projects will require at least some repainting of walls or ceilings. Best to account for this ahead of time!
Additionally, these are only guidelines – you may choose to spend more in one area or another. The point of this exercise is to make sure your budget includes all the typical elements, within a reasonable price range.
Design*, Cabinetry, and Hardware: 35%
Labor/Contractor fee: 20%
Appliances and Ventilation: 12%
Floor Covering: 7%
Walls and Ceilings: 5%
* A certain number of hours of design time is often included with the purchase of cabinets. Check with your design center for details.
Our certified designers understand your budget and priorities and will ensure that your project meets your goals and stays within budget. Not only can our designers assist you with selecting cabinetry and associated elements such as countertops, backsplash tile, cabinetry hardware and appliances, but they are also conscious of your budget and work to save you money on the overall cost of your project.
At Studio M Kitchen & Bath, we work with clients on a wide range of project sizes and budgets. We deliver excellent design services, high-quality products, and an outstanding customer experience on every project, regardless of size and scope.
Armed with all this information, we want to remind you that we can help! Take a look at our process blog and set up an appointment with a designer, who would love to make your remodel project stress-free and fun!
Stay tuned for upcoming topics in this series such as how to prepare for your remodel and how to live through a remodel.