When you decide to remodel your home, most (if not all) of the project will hinge on your budget. If you’ve never had to set a budget, however, it can be hard to decide on a number. Obviously, you’d like to get the best quality possible, and ensure that all of your main renovations are included. So how do you know what is a reasonable amount to spend on a project, and how much should you prepare to pay your remodeling company in Phoenix, AZ?
What determines the cost of a renovation project?
Your renovation costs are determined by several factors, including where you live, what kind of room you plan to remodel, the materials you want to use and how large the room or home is. If you’re hiring a remodeling company or general contractor to do the work—and you should, unless you’re a licensed contractor yourself—your renovations will be more expensive.
Typically, you can expect that renovating a room in a 1,000 square foot home will cost anywhere from $10,000 to $60,000, and a 2,000 square foot home will double that range. That’s a lot of money, so it’s key to create the budget and verify it with your contractor before you take out a loan.
When you’re determining how much you want to spend, be sure to keep in mind how much your home is currently worth, and whether your renovations will actually add value. (Many renovations won’t add enough value to make them worthwhile solely to sell it, so choose wisely.) Picking projects with a high ROI is a smart way to get the most out of your budget, no matter how big or small it is.
Creating a project budget
Here are some tips to keep in mind as you’re setting a budget for your project:
- Set your priorities: Why are you doing this remodel? Is it to get more enjoyment out of your home, or to make it more attractive to potential buyers? Once you have the answer to those questions, you can start setting your priorities. Decide what the “must haves” are versus what’s “nice to have if it fits in the budget,” and determine where you can be flexible, both structurally and in terms of design and materials.
- Estimate costs: Next, you’ll need to estimate your costs. There are plenty of online tools that can help you estimate how much it will cost to redo your kitchen cabinets, add an island and replace all of your appliances, for example. Be sure to consider the cost of labor and materials.
- Get contractor bids: Finally, you can start talking to contractors. Research reputable general contractors in Phoenix, AZ, then call them to interview them and get bids on your project. Keep in mind that you don’t necessarily want to go with the lowest bid, unless their reputation is stellar and they can do your renovation on your desired budget.
Ultimately, your home renovation budget is determined on a case-by-case basis, so be prepared to do plenty of research, and talk to your contractor about how you can cut costs. Call White Builder, Inc. to learn more about our services!