Budgeting for a Gainesville Home Remodel: Costs and Financing
July 13, 2020
In part one of our series on budgeting for your Gainesville home remodeling project we explore the value of a remodel, the key factors that influence your costs, and how to seek financing. Follow our blog to learn more about budgeting in our upcoming articles on kitchen remodeling costs and bathroom remodeling budgets.
If it is time to remodel your Gainesville home, you are probably thinking about styles, color schemes, and better storage. Have you considered the cost of remodeling and how you will finance it? This can be a daunting task, but if you do your research and partner with an experienced remodeling company you will be prepared and get the best value out of your home upgrade.
First decide why you are remodeling.
Before you start thinking about costs, it is important to consider your goals. There are several reasons why you may want to update your kitchen or bathroom and your final budget will be influenced by this.
Do you hope to increase the value of your home, either to bring it in line with other homes in your area or with a more immediate plan to resell? If so, it is important to consider how much value you will add to your home with this remodel. According to Remodeling.net, you can get a return of up to 78% on a kitchen remodel and up to 64% on a bath remodel, though this can vary depending on how much you spend and the value of homes in your area. If you are planning to resell, check with realtors in your area to see what items affect the resale value the most, and be sure to prioritize these updates. Likewise, make sure you do not spend so much that you price yourself out of your local market.
Are you considering a kitchen or bath remodel to enhance your lifestyle? If this is your “forever home” or even your “for a long-time home” then you may be planning a kitchen or bath design for your own enjoyment. In this case, it is time to think about what is important to you. If you plan to stay long-term, it is best to spend as much as you can reasonably afford to get the best space that will last you into the future.
If you are thinking about a partial remodel, then your budget requirements may not be as high. However, make sure you will be happy with this limited upgrade before you get started. Once you are going through the process, picking out products, allowing your home to be in a state of upheaval, and finding financing, it makes more sense to do a larger project than doing work piecemeal if you can afford it.
How much will it cost?
Your goals in remodeling will greatly influence the key factors that affect cost: the size of your space, the scope of your project, and the materials you choose. Take time to consider your goals and what works best for your family before embarking on your project, and then build your budget around your requirements. According to the National Kitchen & Bath Association (NKBA) you should spend 15-20% of your home value on a kitchen remodel and 5-10% on a bathroom remodel. These figures vary depending on your own requirements and your available funds, which we will explore in more detail in later blogs.
How to finance.
Once you know what you want, what your priorities are, and have an idea of how much it will cost, do you know what your options are for financing your remodel? Unless you have sufficient cash to hand you need to consider the option that provides the best rates and allows you to have the money available when you need it.
Examine all the options to find the best one for you. There are a few options available to most homeowners depending on your personal situation, with different pros and cons and varying rates. These include a home equity loan, refinancing, or personal loan.
Get your financing worked out in advance. Once you are ready to start your remodeling project you want to know that you have your funding ready to go. Find out when your funding will be available and make sure it matches up to the date you need it to pay for key stages of your remodel.
How to control costs.
When budgeting for a kitchen or bathroom remodel, it is important to understand how to keep your costs under control no matter how big your budget is. Here are a few tips.
Figure out your budget, set limits for yourself, and stick to it.
Base your remodeling budget on your finances and do what you can with it. Extra items that go beyond your budget can be left to complete later, or you can decide to do some work yourself like painting.
Decide what you need vs. what you want. If you have more bandwidth in your budget, then go for it and get your dream kitchen or bath. If, however, your available budget is more limited, focus on the items you need.
Prioritize what is important to you so you know what to keep and what to drop if you must make difficult choices to stay within your budget. This could be different for every person — for you it might be a must-have granite countertop but for another person, it could be a custom cabinet line.
Do your research to make sure you are happy with the design and budget. Look at products in person so you see differences in quality, which will help you understand where your money is going.
Changing your layout significantly increases costs, so if you feel your existing layout still works maintain it to keep a lid on your budget.
Keep items that are in good shape and refurbish some items like appliances.
Consider some open shelving in place of upper cabinets. Open storage is very on-trend and costs less than installing floor-to-ceiling cabinetry. Just make sure you are happy to maintain the shelves by keeping everything neat and dust-free.