Unlike Julia Roberts’ character in Runaway Bride, a Runaway Budget is harder to make peace with, once your money is gone and certainly, it is less romantic.
When I am contacted by a new client, I have a standard list of questions that I ask, in order to get things started.
The most critical question on my list is, “What is your budget?” followed by
“How long do you plan to stay in your home?”
The answers I get help me to gauge how realistic a person’s expectations are,
but oftentimes the answer concerning the budget is, “I don’t know”.
That’s a reasonable response, given that most homeowners are not design or construction professionals. Moreover, most people don’t know what to base their budget on. And this is an important sticking point.
Logically, your budget should be based on something more than money you have saved for a rainy day.
Your home is your most valuable asset, so shouldn’t the cost of a renovation be based upon facts that tell you how much value improvements will add to your home?
My answer to that is a resounding YES!
There are guidelines that homeowners can follow, in order to ascertain the cost of their renovation and it starts with the current market value of the home.
If you aren’t sure of your home’s value, invest in an appraisal before moving forward with the budget for your renovation.
In addition, a simple internet search of your home’s current, market value in public tax records such as NJ Tax Records Search will unearth some numbers as well.
When determining the total budget for kitchen and bath renovations, the value of your home is the best place to start and here’s why:
The National Kitchen & Bath Association suggests spending no more than 5 to 10 percent of your home’s value on the total cost of your project.
This recommendation follows closely behind industry experts, who suggest that consumers can expect to recoup 75 to 80 percent of the total cost of a bathroom or kitchen renovation, if the remodel is done right.
In broad terms, that means that a home currently valued at $550,000.00 can sustain the aforementioned remodels costing anywhere from $27,480.00 to $54,960.00 with a return of approximately $21K to $43K respectively.
So reign in your budget and start from a place of knowledge.
There’s nothing comical about losing your shirt, in order to have a prettier shower.