5 Factors That Will Help You Decide Your Budget For Kitchen Remodeling in Denver Colorado
It goes without saying that you should have a budget for your kitchen remodeling project. And for anything else as well, whether that be shopping for a new car or just buying a new perfume, you should always have a budget so you can make the right decision for YOU. Funny thing is, when I was doing the research for this article, a lot of websites just gave a simple formula to calculate how much you’d end up spending – something like a fixed price per square footage. I think that is an inaccurate way of calculating what your expense will be because when it comes to remodeling your kitchen, your budget depends entirely on what your taste is as a homeowner and the current condition of your kitchen. You cannot calculate that just based on square footage.
So, in this article, I wanted to focus the 5 most important factors that you should consider when coming up with a budget. These are real-world factors that we used when we were doing our remodeling (yes we like to remodel our kitchens as well and it’s the best thing because we can show it off to our friends. And it’s also a great way to show what we can achieve). So, without any further ado, let’s just jump into it:
Your Goal With the Kitchen
You gotta have a vision in mind before you even start with this. Obviously you are unsatisfied with your current kitchen. That’s the reason why you want to remodel it, so that it suits your needs and you love spending in it.
So how will you create this vision?
Simple, you figure out what are the current bottlenecks you are facing in your kitchen right now.
You love cooking different cuisines but your current layout is stopping you from being more efficient? Maybe you love having guests over but they all have to wait in the living room while the food is being prepared which gives you a restaurant-y feeling? You’d rather have them up in the kitchen while you cook the food so they can participate?
In that case, an open kitchen would be the best option.
Or maybe you are just getting ready to sell your house but a couple of buyers have said that if your kitchen would be better, they would’ve bought it. Then your kitchen is a huge sticking point.
In that case, you want to go for a mix of aesthetics and functionality.
Remember, your current bottlenecks will decide what your future kitchen will look like.
Now that you have identified those bottlenecks, it’s time to list them based on your priority.
You gotta be honest with yourself here.
Maybe entertaining your guests is a higher priority for you and so you want to have an open kitchen that also looks good. In that case, you would want to spend as much as possible so you can have the flexibility of choosing the best materials that will last for years to come.
Or maybe you just want to remodel the kitchen so you can sell your house. In that case you can come up with a lower budget that would be just enough to make your kitchen look just a little bit better so that it gets your buyers over the fence and pull the trigger.
Value of Your Home
This is a big one. You want to identify what your home is worth. And not just that, you also want to determine what other homes in your neighborhood are worth. Best way to find this out is Zillow. Asking your neighbors about their home value is the easiest way to have the most awkward conversation ever. You want to avoid that.
Now, this step is an important one. You want to figure out if any of the homes in your neighborhood were recently sold. And if they were of a similar size as yours, but they were sold for a higher value, you might want to start making friends with the new family that moved into that home.
Perhaps introduce yourself, cook a nice dish for them as a welcome gift and ask for a quick tour. Obviously you want to make sure that you calibrate this based on the situation. But yes, most people are more than happy to show around their house if they think they got a great deal and their house is beautiful.
Once you get that tour, take a note of how their kitchen is built (mental notes, you don’t want to whip out a notebook in the middle of the tour lol). You kind of want to replicate that and see if you can make things better in your own kitchen while keeping your spending down.
Changing the Layout?
If you’ve been following these steps, then you would already know whether you are going to changing the entire layout of the kitchen, or if it will just be a facelift. This is an important part because if you’re planning on changing the layout, then your spending will go up significantly.
For example, if you know you’re going to move the kitchen sink to a an island sink, then you have to consider costs related to plumbing, carpentry, etc.
Again, this all depends on what your initial motivation is to remodel your kitchen. Usually, sinks that are attached with countertops are better because that makes it easier to do the dishes. If you’re going for an island sink, then you might also want to add another sink somewhere for functionality.
Are You Planning to Sell?
This goes back to my first point. If you’re planning to do just a facelift so that you can make the kitchen look good for your prospective buyers, then you want to spend as little as you can. Because you’re not planning to stay in that home for long.
But if you know you’re going to live in that house for years to come, then it is better to spend more now so you can have a better kitchen for a long time. Again, you literally are going to live with the decisions you make for your kitchen today.
My personal opinion on this is that you should go for a balance of both – aesthetics and functionality.
You want the kitchen to look attractive enough to you so that you enjoy working in there and cooking great food. But it should also look attractive to other members of your family so they can have a good time in there as well.
And when it comes to functionality, it all comes down to how you prefer having the layout of the kitchen and what you think would make your workflow more efficient.
Where Will the Money Come From?
Most people don’t talk about this one but this is the most important factor. You want to decide what will be the funding source for this project of yours. That will decide how much you can actually spend on this remodel. If you have cash available, then that amount will decide how much you can spend.
But if you’re going for sourcing options like credit cards, loans, etc. then that depends on your debt to income ratio (DTI).
How do you calculate your DTI?
Simple, you add up all your monthly debt payments like credit cards, auto loans, mortgage, etc. and divide that by your income. That’s your DTI. Now you can decide from what’s left and decide how much you can spend on remodeling your kitchen.
You can also take on a loan for this but I would suggest you talking to a remodeling company and asking if they offer any payment plans. If you can pay off the entire amount in 3 to 6 months, then you can go for that without having to take out a loan.