6 Useful Tips when Budgeting for Your Remodel

This month on the blog we’re talking about one of the most important parts of planning your remodeling project: budgeting.

It’s not as fun as picking out your cabinets or new appliances, but it’s important to know what a project is going to cost before you get started – and what you can afford. As part of our design/build process, ELM Construction is going to make sure we create the best project for your budget, working with you to make your dream a reality!

Read on below for six tips on how to manage the budgeting process.

1. Get a rough idea about what it’s going to cost

Unfortunately, it’s not as easy as saying “X dollars per square foot.” There are some online resources that can be helpful when setting an initial rough budget, but take them with a grain of salt.

One of these is the annual Cost vs. Value report produced by Remodeling magazine. It offers estimates for the average project in 22 categories in more than 100 markets.

Recognize that those are averages and every project is different. That’s especially true when it comes to remodeling. There are demolition costs, unique situations of the property or home and other challenges that aren’t present in new construction.

2. Know how you’re paying for it

Now that you’ve done your initial research, it’s important to have at least a rough figure in mind of what you can afford. You also should know how you intend to pay for the project. Are you paying cash, taking out a home equity line of credit or some other type of loan? How much are you comfortable spending on the project?

3. Get the right remodeler

A professional, experienced remodeler is going to be able to identify potential challenges ahead of time and help you accurately plan for your project. Our consultative approach will help you accurately plan for your project. We can help you figure out if the budget you’ve set is realistic or if the project needs to be adjusted.

Make sure when you are looking at proposals/estimates from multiple remodelers that you are comparing apples to apples. Some contractors might leave costs out of the initial bid in order to try to win your business. If you see something in one estimate, but not another, ask why!

4. Think design/build

The best way to avoid problems is to work with a design/build remodeler like ELM Construction. With the design/build model, the designer and remodeler are on the same team, working together throughout the process. That means more efficiency and practical designs that can be built to fit your budget.

5. Establish priorities

Know what is important to you. Our goal is to get you everything you want, but you may have to make some cuts to hit your budget. What is going to be essential to your happiness and what can you live without? Our designers are also probably going to be able to help you come up with some alternatives to save money.

6. Set aside money for surprises

No plan will capture everything. As just one example, a kitchen remodel may discover mold hidden in the wall behind the sink. Older homes often will have other surprises hidden in the walls, such as poor insulation or bad wiring. A general rule of thumb is to set aside an additional 10 to 15 percent of the project cost for these unexpected expenses.

Ready to plan your project? ELM Construction is here to make sure you get the best remodel to meet your needs, at a fair price. Contact us today to discuss your next remodel!