A renovation project that has managed to stay under or on budget is a great success in the world of home remodeling. One of the keys to achieving this much sought after outcome is a well-researched home remodel estimate. As homeowners commission and complete multiple remodels over time, they may develop a method to creating an estimate for their projects and will likely utilize the same trusted resources each time. If you are in the planning phases of your first remodel, you may not have the benefit of this experience just yet, but the good news is that there are a few tips and tools already at your disposal.
Resources for informing your estimate To start, a skilled home remodeling contractor can be an excellent resource in terms of outlining region- or locality-specific costing, such as materials that may be cheaper due to their abundance in or convenience to your area. Additionally, your choice of contractor might be informed by the cost-reducing benefits they bring to the table, for example, lower prices for materials or lower rates for subcontractors due to their strong professional relationships, all of which can significantly impact your estimate. Beyond mining the area general contractor for information, there a few rules of thumb you can account for in your estimate. As a budget guide, it is advised to spend on the renovation project the same amount as the room being remodeled is valued at, in terms of its percentage of your overall home value. For example, if your home is valued at $300,000, and a kitchen generally accounts for 10-15% of a home’s value, then you should spend around $45,000 on a kitchen remodel. This metric also relates to the trends in various home renovation returns on investment (ROI). On average, home remodel projects ROI can be 64%, meaning for every dollar you spend on your remodel, you will get 64 cents back if you sell your home. Keeping in mind these general guides of how to cap your budget and how you can anticipate the remodel to impact the value of your home, you can continue to work with your contractor to find the design, materials, and fixtures that fit your needs. Things to keep in mind In addition to the rote work of listing what type, how much, and what price for all the components involved in your home remodel, it is important to keep a few other expenses in mind. In addition to the other costs, anticipate 10 to 15% of the total cost going to the contractor you’ve chosen to partner with on your project in payment for their services. Further, when contacting general contractors for bids to determine who will be the best fit for your project, it may serve you better in the long run to toss out the lowest bidder – it can be a red flag that corners may be cut that will cost you later. Lastly, if you are doing the project yourself, it is also a good idea to pad your budget by ten to twenty percent, to accommodate those unforeseen expenses that tend to come up in any home remodel. Since 1983, Mares & Dow Construction has been serving the San Francisco Bay Area as general contractors and home remodeling experts. We will work with you as you prepare the budget for your next remodel and can help you make strategic decisions to keep the project on budget. Before you get started on your next home remodeling project, contact us today!
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