How to Budget for a Kitchen Renovation

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Home renovations can quickly spiral out of control if you aren't organized and don't have a budget to follow. Costs suddenly have add-ons, and there are tasks or permits you didn't account for. If you are planning a kitchen renovation, budgeting can save you a lot of money. At Wholesale Cabinet Supply, we can help you budget for your home renovation.

Assess Your Needs and Set Goals

The first step you should take is to assess your needs and set goals. This will ensure that your renovation is realistic. Look at the current state of your kitchen and identify what areas you would like to renovate. Make a detailed list, such as adding our Stonecreek SPC click flooring or a tile backsplash.

Then, set your goals. Is your objective to open up the space or modernize the room? Setting goals will guide you throughout the process. Consider what your lifestyle is like when setting your goals — your cooking habits, the size of your family, and how often you entertain in your kitchen.

Once you have a list of what you'd like to renovate and your goals, prioritize that list. You may not be able to renovate everything, so create a list of must-haves and what would be nice to have. This way, if you're constrained by budget later, you know exactly what to cut out.

Research Costs and Gather Quotes

Having a renovation list is a good start, but you will need to research how much each renovation on your list will cost. A structural change has a different price tag from a full remodel or a small cosmetic update. Plus, there will be a variety of costs to add in, such as material costs, labor costs, and permit fees.

When you research material costs, again, make sure to have your must-have costs versus "what you can settle for" costs. Marble is very expensive, for example, and you may have to compromise on your marble countertops. There are a myriad of cabinets to choose from, such as our basic white cabinets or stained cabinets. You could even opt for simpler RTA cabinets. Prices will differ and, sometimes, by a lot.

Labor costs can vary from company to company, so try gathering quotes from as many highly rated companies as possible. You can also talk with contractors, architects, and interior decorators about what you would like done. They can point out the hidden costs that you may need to budget for. They can offer great advice on affordable alternatives or even provide new ideas.

There are online cost calculators that can give you a rough estimate of what your kitchen renovation will cost. These may not factor in all the details, but they can certainly give you a ballpark figure.

Besides getting quotes from different contractors, make sure to read reviews and get references. You will be spending a lot of money and want to make sure that you're going with the best contractor available.

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Create a Detailed Budget

Now that you have gathered quotes from several sources and have an estimated cost using an online cost calculator, it's time to create a detailed budget. Return to your must-have and "would be nice to have" lists. If your budget can cover everything, great. If not, think about tossing the non-essential improvements.

Your budget should be categorized — materials, labor, permits, appliances, interior design fees, and contingency funds. There may be changes in plans due to extreme weather or even unforeseen accidents that could result in an additional expense. If you have a contingency fund, you'll be better prepared for these kinds of expenses.

This detailed breakdown will allow you to keep better track of everything, too. Furthermore, it gives you a good idea of what categories you may be overspending in or where the hidden costs lie.

As the renovation progresses, review your budget regularly. You may need to make adjustments periodically to stay within the limits you set.

Research Finance Options

If you have all the money in your bank account, then researching finance options won't be necessary. However, many people may need to combine a few finance options to complete the renovation.

Start with your savings. If your personal savings can cover everything in your detailed budget breakdown, you're in a good place. You won't have to worry about debt or making interest payments.

If you don't have all the money in your savings account, consider a home equity loan. This lets you borrow against the equity you have in your home. Remember that your home serves as collateral, so if you are unable to repay the loan, you could lose your house.

You can also apply for a home equity line of credit (HELOC) which is similar to a credit card. Again, your home serves as collateral.

If you are hesitant about putting up your home as collateral, consider a personal loan or a credit card with a low APR. You may want to check with your contractor. Some contractors offer financing options.

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Let WC Supply Help You Build Your Dream Kitchen

Renovating your kitchen can be an exciting project as it may breathe new life into your space. However, it's important to be fully aware of the costs before taking the plunge. By following the above tips and checking out our inventory of cabinetry and flooring, you'll be on your way to an ideal kitchen.