KITCHEN COSTS: Budgeting For Your Remodel

How much should I spend? Will I be able to afford it? These are questions that are at the core of any remodel. We want the biggest bang for our bucks, especially when it comes to the kitchen, a room full of big ticket items with costs of up to $15,000 for a single, high-end French range. For some, where money is no object, choosing this cooking appliance can be made without blinking an eye but most homeowners are not that lucky.

As part of the important planning I wrote about in the first ideabook in this series on kitchen remodeling ( http://www.houzz.com/ideabooks/4008), I mentioned the need to determine your budget. The money you will need to tackle the work will affect the layout of your kitchen, the topic I covered in the previous ideabook ( http://www.houzz.com/ideabooks/4128). In this ideabook I will delve more into the issue of developing a manageable and realistic project budget.

During the planning phase you will determine Scope of Work or the work that needs to be done and what work you would like to have done as part of the remodel. The result will place the project into one of two remodel categories that differ greatly in average costs.
• Minor Remodels
o Average costs: $17,000 to $25,000*
o Scope of Work: Some kitchens can be laid out well and/or existing plumbing and electrical can already meet current building standards but the finishes are simply outdated and need to be updated. The layout of the space virtually remains identical to the original one.

• Major Remodels
o Average mid-range project costs: $50,900 to $59,700*
o Average high-end project costs: $103,500 to $115,500*
o Scope of Work: Some kitchens, due to poorly planned layouts and/or need major updates and/or repairs, will result in an overhaul with possible structural changes, new layout or expansion in size.

When you have determined which type of remodel your kitchen will go through, you now have a general idea of the budget range. In order to get a more specific number, take into account the components that a budget needs to cover in revamping any kitchen.

• Design Services: If you choose to use the services of a design professional, he or she can take the project from design concept, to selection of the finish materials to project managing the construction process.
o Average costs
Architects: $150 and up her hour, flat fees from $500 to $5,000
Interior designers: $100 to $150 per hour, flat fees from $500 upward to $10,000
Kitchen designer: $50 and up per hour

• Permits: Check with your local building permit office to find out what current fees cost for work such as demolition, building/construction and inspections. Some areas will charge a percentage of the total project and others determine the fees by the specific work that is planned. Fees can cost from a few hundred dollars for minor remodels while major ones could be in the thousands.

• Finish Materials: Here are the elements that impact a budget with details on major expenditures :
o Appliances
Typical types
• 5 piece suite: range, microwave, ventilation, refrigerator/freezer, dishwasher
Average costs
• Good: $2,250 to $3,500 (usually black or white)
• Mid-range: $3,600 to $8,100
• High-end: $12,400 to $35,000
o Cabinets: 40% to 60% of total costs
Material type: Materials used to construct storage (listed from least expensive to priciest) include laminate, veneer, solid wood and painted wood.
Average costs
• Pre-fabricated/in-stock lines: $4,000 to $5,000*
• Semi-custom: $8,000 to $10,000*
• Custom: $16,000 to $30,000*
o Counters:
Material types: Nonporous material types should be used like laminate, ceramic tile, solid manmade surface of corian and quartz natural stone(slab and tile), wood, stainless steel and copper..
Average costs
• Pre-fabricated: $360 to $2,000*
• Custom: $450 to $18,000*
o Flooring
o Plumbing Fixtures
o Lighting
o Furnishings: furniture, accessories
o Hardware
• Labor: Once the finish materials have been selected a qualified, licensed and insured general contractor (GC) will be needed to oversee and/or install them. Make sure that the GC and his/her sub-contractors are familiar with installing the types of finish materials you have chosen. Costs will differ from contractor to contractor but one formula that one of my own GC’s use is simple: 3 X (cost of the finish materials) = construction costs.

If the sight of these average costs has you thinking twice about working on your kitchen, or any other part of your home, there are ways for you to make the financial burden lighter. We are familiar with tax deductions that you can make on work done to your home but these are not the only programs available. Public utility companies and government agencies offer incentives to homeowners that plan and install eco-friendly items such as energy efficient fixtures and equipment. In California, PG&E offers rebates on cooling and heating equipment, lighting, appliances and even insulation that meet their high standards of energy efficiency. The benefits are both long term where you can lower your energy consumption resulting in lower utility bills, but also immediate where you can receive hundreds to thousands paid directly to you for making smart choices.

Hopefully I have provided information that helps you form a financial strategy to move forward now or wait abit longer before beginning your kitchen remodel. Now you have some helpful tools to confidently answer those two nagging questions.

*The average costs above were compiled by www.remodelingonline.com, and are based on using a 200 square foot (10’X20’) kitchen as a standard.