Estimating Your Kitchen Remodeling Costs

The first question most people ask is: How much is it going to cost?

What you end up paying depends on three things that you can choose and one that you can't.

First, the material you select for your kitchen plans will have the biggest impact on the price; it's also where you have the most choices.

Then there is the cost of installing the materials you have selected. For this you can take the lowest bid.

Finally, how much you pay will vary with where you live. You can't do much about this! Construction costs vary widely throughout the country so the geographic location you are in will pretty much dictate the going rates.

When doing a remodeling project figuring out how much to spend can be the big question.

Some things to consider would be:

What condition is the house in and what era does the current style suggest and what would you like it to be?

What is the current market value of your house before remodeling and what is the average market value of comparable sized homes in the neighborhood? How long do you actually plan to stay in the home? Is it a flip? Are you planning to live there for 2-4 years? 10 years? Forever?

Whatever amount you feel comfortable spending or that your budget will allow, you should keep in mind that your home is still an investment, possibly your biggest investment and you want to have the highest return possible on your investment, especially if your turn around time is sooner rather than later.

You don't want to remodel all of your equity away. Some projects add value to the home and others just eat away your equity with no return at all. Fortunately a kitchen remodel is something that recaptures nearly 100% return if you stay within the maximum 15% of the home's current market value.

It's always a good thing to check out other homes in your neighborhood and see what the competition is with comparable homes so you can stay in the game and even have an edge when it comes time to sell. You want to make sure yours compares best to others in the same price range, however, your net profit is still the end game.

But on the other hand, if this is the home you plan to be in for many years to come, the pleasure you would receive from having your perfect dream kitchen, experiencing delight and appreciation on a daily basis, should never be underestimated either.

I personally believe we should all do things that bring us pleasure and joy into our lives on a daily basis but it's all a balancing act so the purpose of your remodel needs to be taken into definite consideration.

The 5% to 15% Rule is a handy tool to help determine how much you spend on your kitchen project.

Basically, the rule states:

The entire kitchen project (including cabinets, appliances, Countertops, flooring, lighting, trim molding, & wall coverings) should cost no less than 5% and no more than 15% of the current value of your home with approximately 50% of the total cost allocated for kitchen cabinets (including accessories and trim).