Budgeting is a key step in any home improvement project. We are often asked “What will my project cost?” or “Can you provide a bid for our project?” This can be a challenging situation as it is much more efficient to assess and develop a project to fit your budgetary needs rather than get multiple opinions on what an unspecified remodel will cost.
While you may not know where to start when developing a renovation budget there are tools available. Our goal is to help offer some guidelines and information to help develop your project budget.
Average Remodeling Costs
We have found Remodeling Magazine’s National Cost vs Value Report a helpful resource. This report breaks down specific projects and gives an average cost for those projects in a particular region. For Example a bathroom remodel in the Salt Lake City area in 2020 ranges from $19,000 – $62,000. A kitchen remodel ranges from $22,000 -$65,000. While those ranges are wide, the difference is almost always predicated on selections of finish materials (counter tops, tile, cabinetry, fixtures and accessories). In our experience those prices are fairly accurate.
Another resource is the NARI – 2019 Remodeling Impact Report that was put together with the cooperation of the National Association of the Remodeling Industry and the National Association of Realtors. This research gives typical cost for 20 remodeling and replacement projects as estimated by NARI members and estimates the impact of those projects on appeal and return on investment.
Percentage of Home Value
Using your home’s value can also be a mechanism for budgetary planning. A good starting place is to plan on spending 20-25% of your homes’ value on a kitchen remodel and 10-15% on a bathroom remodel. While these numbers can move in either direction based on the multitude of variables this will provide some basic perimeters of budgetary needs.
With some realistic budgetary perimeters in place, it is possible that your needs and expectations will not be in line with what you have to available to spend. That is where we can help! Often by reducing the scope of a project and prioritizing areas of need or choosing less expensive selections we can bring the design in alignment with budgetary restrictions. Financing is also a way to spread the cost of a remodel while enjoying the benefits. It is also possible to develop a master plan for your home and develop the project in phases in order to lessen the initial investment.
Our goal is to build what you want and we can strategize ways to do this together with a clear budget in mind.