1. Decide how much you want to spend, and stick to it.
Setting a budget for your kitchen remodel and staying within it sounds so obvious and simple, but it's harder than you think.
The average cost of an upscale kitchen remodel is more than $80,000, but three factors should determine whether you want to spend that much. The first is how much you can afford to spend. Take a look at your finances to determine this number.
The second is how long you plan to stay in your house. If you are planning on selling the home within five years, then your kitchen renovation should be viewed as an improvement on a real estate investment. Only spend what you think you will get back when you sell the house. If you plan on living in your home longer than five years, you should do a remodel that will make you and your family the most comfortable.
The third factor is your neighborhood. Is it modest, or upscale? If you put a ruling class kitchen in a middle-class neighborhood, you'll lose money on your investment when you sell your house. Don't over-improve.
2. Know how the costs will break down.
Labor will consume anywhere from 20 to 35 percent of your project costs. Cabinets can also devour a big chunk of your kitchen remodel budget.
Here's how it breaks down, on average:
35 percent: cabinets
20 percent: labor
20 percent: appliances
10 percent windows
5 percent: fixtures
3 percent: fittings
7 percent: other
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