Project Investment planning is a key part of any renovation project.
Whenever we start planning a renovation project, the excitement comes first. We anticipate the beauty of our new space, the new cabinets, appliances, and all the features that we would love to have in the future.
A very human response!
Excitement at the opportunity for our space to be beautiful but also suited to our needs in a way our current space is not.
Excitement at the prospect of new cabinets, new countertops, new flooring, new appliances.
Excitement at the idea of our home truly being reflective of our lifestyle and our family.
We dig into all those pictures and ideas that we have saved on our phones. Because we have been planning a renovation of our space in our head for a long time.
Sound familiar?
Then comes the reality….
Planning a renovation can be a huge task. The number of questions to ask and decisions that need to be made during the planning phase can be daunting. Decision fatigue is real.
What is our style? What aesthetic do we relate to? Who can we trust to work with? What can we do to make the space feel like “us”? How long is the project going to take? Who is managing the process? How are we going to live in our space while the project is on-going?
And then, the BIG QUESTION.
What is our budget? What are we going to invest in this project?
Budgeting for renovations can be the biggest decision of any home renovation project.
“What is your expected investment in the project” can be one of the most uncomfortable questions we can hear and respond to.
We have concerns, right?
- Concerned that it may not be enough to create the project we would love.
- Concerned that the price isn’t fair or equitable.
- Concerned that our team of professionals will be good to work with.
- Concerned that we are, or are not, adding value to our home.
Clarity in your investment helps your renovation team provide and suggest the materials that will most fit your needs, as well as your budget.
The Numbers
Averages for kitchen renovations in the United States range from $10,000 – $150,000, or 5 to 15% of a home’s value, according to The National Association of Home Builders.
That’s a huge swing, right?
Let’s dig in and discuss why being open and honest with the budget to your renovation team will assist them in steering you toward selections that fit into your needs and expectations.
Cabinetry
Cabinetry should be expected to be 30-45% of your budget. 80% of the cabinetry costs can be reflected in your selection of door style, finish and cabinet line. Budget lines can range from 3k – 15k. Semi-custom lines can range from 10k – 50k. Full-custom lines can be 35k – 65k, or more. Cabinet lines have a variety of door styles and finishes, as well as many options in cabinet sizes, and storage options. Selection of cabinet line does impact costs. Qualified Designers, Contractors and Builders can assist you with narrowing down your selections.
Countertops
Countertops can range from $60/per sq ft installed, to $200/per sq ft installed, or more. As with cabinetry, countertop costs vary based on the material used, as well as the amount used. Did you fall in love with the full-height backsplash look you saw on your favorite social media account? Beautiful, both in look and maintenance, but it will add to your material and installation costs. Materials range from Laminate to Quartz to Marble and Quartzite. Engineered or man-made quartz dominates the market.
Appliances
Appliances can be costly, but with the number of options to select from, you can purchase great, reliable appliances without breaking the bank. Mid-range packages average $3k – to 6k. Luxury packages can hit $20k-60k. Also, keep in mind that the panel-ready appliance visual that you fell in love with on social media adds additional costs to your cabinet budget. Appliance panels are most often custom made to your specific appliance specifications. Also, some low-to-mid-range cabinet lines do not offer appliance panels in their line. Your project team will have preferred, trusted appliance businesses that they work with, and ask them for a referral!
Labor
Installation and labor [trade] costs can be another large part of your budget. Costs can account for 30% to 40% of the budget. Costs will vary by the region that you live in. Availability of good tradespeople can also vary by region. In the renovation industry, we have a saying: “If the quote for labor seems too low, or the contractor is available to start your job TODAY, it’s probably not the best choice for your renovation.” Skilled trades, talented contractors and designers are busy people. They bring training, experience and skill to your renovation. It does indeed pay to wait for the team that will do your job, do it well, and within an acceptable timeframe.
Layout Changes
Moving plumbing, electrical, gas lines and venting systems not only cost time and money, but materials. They can add 3K to 10K to your project per structural change. Deciding early in the process that the sink is moving from the outside wall to an island, or the hood that vents outside must move will not only provide you with cost estimates upfront but allow your team to fully plan and implement those changes.
Change Orders
As with Layout changes, change orders can cost you money, and a lot of it. In the trades, change orders are items that a homeowner wants to change midway through the project. After budgets have been decided, contracts have been signed, materials ordered, and trades people scheduled. Change orders disrupt the plan that your team has established for your project, and costs of additional/replacement materials and labor will be passed on to you.
Miscellaneous
Miscellaneous items in your renovation can include:
– Tile. Are you using tile for your backsplash but also your flooring? Plan a larger part of your budget for the tile allowance if using tile on the floor.
– Plumbing. Plumbing fixtures, i.e.: faucets, sinks, reverse osmosis systems, and the like also need to be accounted for within the budget. As with appliances, most renovation professionals work with trusted partners for your plumbing needs.
– Hardware. Cabinets need hardware! Hardware keeps the natural oils from human skin transferring to your beautiful cabinetry that you spent hours selecting. Again, your renovation team can be a great resource for quality hardware options.
Creating your renovation budget can be overwhelming.
But it is, by far, the important part.
It helps eliminate surprises for every part of the project team, whether that is you as the homeowner, your contractor, or your designers.
Being honest and upfront not only with your wishes and needs but also your expected investment not only protects you, but also the team behind your renovation.
Multiple revisions to plans, quotes, drawings and renderings because the budget has not been established or provided costs money to both you and the team you have trusted to create your dream space. Respecting the time and effort of the team involved in your project includes providing budget numbers that reflect what you are willing to invest in your project.
