Before you start a remodeling project, it will be important to determine the budget. Setting a budget will help you plan your project more efficiently. It will stop project costs from getting out of hand too quickly. It will also help you choose the best financing option for your home remodel. But, before you set out to determine a budget, make sure you have your remodeling priorities in line. Write down specific goals you have for your project, like adding more space to a room or increasing the room’s natural lighting. Once you’ve outline your remodeling goals, you can start determining your budget.
Estimate the Cost
To establish a good ballpark estimate for what your remodeling costs will look like, consider the design, materials, cost of a contractor, and the average cost of remodels in your area. You’ll also want to add and additional 10-20% to your budget for unforeseen costs during your project. Need help determining an estimate for your project? Houzz Real Cost Finder uses real project data to determine the average cost of a remodel in your area. Remember budgets for remodels may differ.
Get a Quote
Next, you’ll want to ask your contractor for a quote. Be as specific as possible when describing your remodel. If you have a portfolio of designs and materials you’ve collected regarding your remodel, it’ll be important for the contractor to look over that in order to produce a more accurate estimate. If you’re worried about your budget, don’t be afraid to ask a contractor for an itemized bid. Also, remember the lowest bidding contractor may not be the best contractor. Look at their past projects online, check out their most recent work, and ask to see a list of references.
Determine How Much You Have to Spend
You may have enough money to pay for a remodel out of pocket. However, if you’re a little short on funds, you may want to check with your bank to see what kind of home equity loans they offer.
Consider Low Cost Alternatives
Once you receive an estimate from the contractor, you may discover that you’ve gone way over your ballpark budget for the project. If you think you can finance the remodel, great! But, if you’re concerned about the cost, speak with your contractor. They’ll be able to recommend better low cost alternatives on materials and design.