Determining the Cost of Home Remodeling Project

Starting a home remodeling project and working on its budget is certainly an overwhelming task. Well, if you are doing this for the first time, you most probably have no idea about costing and budgeting of the project.

Here is a home remodeling cost guide for you to understand how you can figure out the budget of your project. No matter whether you want to remodel bedroom, living room, kitchen, bath or garage, this guide will help you determine how to get most out of your money.

How to start:

First of all, make a wish list. Yes, this is your first step. Once you have it ready in your hand, rule out all those things, which are practically unaffordable. Now, rule out those things, which are practically unnecessary. This will leave you with a list of things that you actually need and can afford.

In a remodeling project it is quite important to figure out what you can afford and what exactly are your necessities. This will help you spend sensibly as well as help you get exactly the things which are important.

Now, here we have listed the top 4 points, which will help you figure out the cost of your remodeling project. These steps are:

Estimate a cost: Generally, most of the projects, which upgrade rooms like bath or add an additional family room may cost around $100 to $200 per square feet. If you are going to involve a qualified and experienced contractor, it is good to discuss your project in detail with them and get a rough idea of home remodeling cost estimate.

Decide a spending limit: Once you have the estimate on your hand, the next thing to figure out is whether you have money or going to take up a loan. If you are planning to pay by cash, the answer is pretty simple. However, if you have to arrange the amount, figure out how much the bank will lend and at what interest rate. The three basic types of loans are:

  • Cash-out refinance
  • Home equity loan
  • Home equity line of credit

The best of all the above mentioned loans is the home equity line of credit. These loans qualify for a lower interest rate as well as you get to deduct the interest amount from your taxes.

Getting quotes: Before you start getting quotes from random contractors, it is ideal that you take references from family and friends. Also, shortlist a few contractors and ask them to give a quote on specific things. Like, let them know the type of plumbing pipes, wires, tiles, etc. you want to use.

Once you have the quotes, go through the past works of the contractor and if possible get in touch with his/her past customers.

Set priorities: Convey your contractor about your priorities. He/she can recommend you on how those points can be incorporated in your project while sticking on the budget. Your contractor can recommend you:

  • To go for some low-cost alternative materials
  • To use some of the older items which are still functioning
  • To cut short your project size a little

Lastly, when everything is sorted out, and the project is about to start, it is strongly recommended that you make all the purchase yourself. This will help you understand exactly for what are you paying and you can easily save up to 20%.