Determining a Budget
Renovating or designing a new build kitchen is a really big decision! The kitchen has risen in prominence, as most consider it to be the heart of the home, and in today’s terms, the core of the family’s command center!
The National Kitchen and Bath Association (NKBA) has a recommendation for the value of a kitchen remodel to help homeowners set an appropriate budget.
Breathing new life into an outdated kitchen adds value to a home in numerous ways. Choosing to do a kitchen remodel or renovation is one of the best decisions homeowners can make, regardless whether your goal is to increase the value of your house or you’re simply wanting to make it a more enjoyable place to live.
But there’s more to consider than the amount of money you can afford to spend as you create a budget. Essentially putting too much into a home improvement project can affect the rate of return (ROI) on your investment. But an appropriate kitchen remodel investment can offer a reward of up to 78% if budget is maximized and costs are kept in line.
The NKBA recommends budgeting 15-20% of the value of your home.
$250,000 home = $37,000-$50,000 kitchen remodel budget
$500,000 home = $75,000-$100,000 kitchen remodel budget
Once your budget has been determined, cut it by at least 25%. Unexpected surprises will be much less stressful if you’ve set money aside upfront as a cushion to deal with them.