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Kitchen Remodel Cost: How to Budget Correctly

Your Approach is The Basis to Define Your Kitchen Remodel Cost

It’s a good idea to choose Plan A and Plan B options for appliances, countertops, tile—just about everything. If you keep a running list of alternatives, a designer can add or delete items to meet your budget. If you can stay flexible about the final choices, you’ll have maneuvering space if unexpected costs arise, such as replacing rotted lumber or non-code-compliant electrical wiring.

Set a Budget and Stick to It

Do your homework

The more research you do before making decisions, the less likely you are to change your mind. And those last-minute change orders can really pump up the kitchen remodel cost if you aren’t careful.

Most times, unless there is an unforeseen structural, plumbing or electrical problem, material and finish changes are the biggest cause of cost overruns. And those costs are controlled mostly by the homeowner. Beware: Last-minute design changes or an incomplete design at the onset of the renovation guarantees kitchen remodel cost overruns.

For example, cabinets that are estimated in a paint-grade maple and changed at the last minute to Ceruse oak will add a huge cost to the budget. Same goes for deciding to include eight drawers in your island rather than two, or adding recessed puck lights under wall cabinets instead of a simple light strip.

Don’t wait until later to plan your backsplash. Tile is not just tile, the size, pattern and material all impact installation cost.

Set limits

How much can you really spend on this kitchen? You can have a wish list, but the important thing is to be honest with (your contractor) and we can value engineer a project to fit your budget. Get an idea of where your money goes so can plan appropriately. Download the Kitchen Budget Worksheet to help you manage your kitchen remodel costs.

Depending on the scale of your project, you can plan to spend between 6 and 10 percent of your home value for the best return-on-investment. If a house is worth $1 million and you put in a $50,000 kitchen, it probably isn’t good enough. On the other hand, if you drop $60,000 on a kitchen for a $300,000 home, you’re doing it for love—not the money you’ll get back when you sell.

Expect the unexpected

You never know what you’ll find during demolition. Homes constructed in the 1970s and earlier can contain lead or asbestos. Testing and removal can cost thousands. A home built 50 or more years ago could require electrical upgrades in the kitchen to support new appliances and lighting. Plan for a contingency of about 10 to 20 percent to cover hidden conditions, substitutions and other surprises. It will cost more than you think, and the corollary: It’s unlikely to cost less than they say.

Where to Splurge, Where to Save

Ultimately, your kitchen will reflect how you live. Because there are no hard-fast rules on where the budget must be spent in the kitchen, how you splurge and save your money will depend on what’s most important to you.

The gourmet cook can justify an inflated budget for appliances and the splurge on a professional range. The entertainer sees a warming drawer and wine cooler as necessities. The busy family needs storage, storage … and more storage in those cabinets. And then there’s the question of resale: How important is it for you to get a nice return-on-investment for your project? Or, are you designing a kitchen for the home you plan to live in forever? Think about how you use the kitchen, and put your money there.

If you’re planning a kitchen you’ll live in for the next decade and you can’t afford certain materials you want today, consider placeholders. For example, rather than installing a granite countertop today, choose a laminate look-alike for at least half the cost that can stand in as your work surface until your budget allows for the upgrade.

What do you value in the kitchen? Refer to your completed Day in the Life of Your Kitchen Questionnaire and Kitchen Goals Worksheet. Then get a sense of how expenses are distributed with the Kitchen Budget Worksheet.

Here is some general advice on where to save and splurge:

Appliances

Be practical and look for energy-efficient appliances with warranties—arguably, you’ll use appliances more than other features in your kitchen. But be sure to maintain a balance between what you spend on appliances and cabinets. If you choose appliances first without considering cabinets/hardware, countertops or other features, you can box yourself into a floor plan and end up without enough money to spend on other features.

But be careful which appliances you spend on. For example, a refrigerator may need replaced in 15 years or sooner, but a cooktop will last longer. Spend there. If you have children and dirty dishes are a way of life, invest in a quality dishwasher or dishwasher drawers that make your life easier.

Across the board, stainless steel is the most popular choice and what buyers look for in a home.