Now that I knew it was time for a Kitchen Remodel, as established in Part 1, the next step is to establish a budget.
As a realtor, I have seen many updated kitchen and know the value of it when selling a home. This is often the center of the home and people highly value updated kitchens and bathrooms. But you need to consider your budget.
According to Cost-vs-Value kitchen remodels can cost anywhere from $23,695 to $69,723 depending on the amount of work needed. However, again if you are moving in the near future you will want to keep in mind that a minor kitchen remodel nets almost 96% of the cost and a major kitchen remodel only nets 75.1% of what was spent. On the other hand, if you plan to remain in your home and enjoy the updates for a while, then you can add those special personal touches that can add up. Otherwise, you want to research options for updating without gutting the kitchen, such as refacing cabinet doors, replacing only counter tops, removing ceiling mounted cabinets, paint versus expensive back splashes, reusing matching appliances that are only a few years old versus new, etc. This is when a realtor and/or a kitchen contractor can help advise you.
One thing to keep in mind for your budget is to add 20% for additional change orders. As the contractor begins to peel away things, your plans may change. You may find that you need to add an electrical plug, add a gas line behind a wall, replace recessed lighting, etc. Best to project extra these potential extra costs in the budget, so you don't find yourself short and unable to do the extra things you needed done while the opportunity presents itself.
The contractor will expect about 25%-30% upfront to buy materials and as the job progresses, they will expect partial payments and then a final payment at the end. This should all be outlined in the contract.
Written by Virginia Hall
Keller Williams Realty