Budgeting a Home Remodel Project: A Step-by-Step Guide

Creating a budget for a home remodel project can be a daunting task. But with the right plan, you can make sure that your project stays within your budget. Here is a four-step plan to help you budget your remodel project: Ballpark the Costs. The first step is to estimate how much your remodeling dreams will cost.

Get bids for each individual project, then rank them according to their priority and start a detailed budget for the project you want to do first.

Calculate How Much You Have to Spend

. Sit down with your contractor and be realistic about your budget. To get a rough idea of what your remodeling budget should be, consider the value of your home as a whole.

Set Priorities and Trim the Project. Homeowners must budget at least 20% above the estimated cost of the renovation. Set a contingency item for 20% of the projected costs and work with your contractor (and with the architect, if you use one) to help you maintain a realistic view of the detailed costs and the projected schedule. Start Your Project.

Once you have determined how much you have to spend, you can start your project. Make sure that you stick to your budget and prioritize the projects that are most important to you.