What Will Your Kitchen Cost? - Part 1 - Keidel Bath, Plumbing, Kitchens

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Allowances, Budgets, Costs - Part 1
Determine Your Budget

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How much will your new kitchen cost?

That depends on many factors:
whether the cabinets are standard (stock), semi custom or custom; whether the appliances are standard or professional grade; whether the Countertops are laminate or stone; what type of options or accessories you choose and what materials and type of construction is used.

More importantly, the answer lies in how much you want to spend ... whether you are using a builder's allowance, setting up a remodeling budget, or planning a custom home.

While you can spend as little or as much as your finances will allow, you should consider the return on your investment when it's time to sell your home, especially if you plan to sell within a few years.

Spending too much might mean not getting back part, or even all of your investment.

Spending too little might actually lower the resale value of your home when buyers compare your home with others in the same price range.

On the other hand, if you plan to stay in your house for a long time, then spending whatever it takes to get what you want is not unreasonable.

A properly developed budget can help you determine what you can and should spend and help prevent sticker shock and cost over runs.

The article addresses the many factors that affect budgets, and will give you some guidelines to help you determine what you can and should spend on getting the kitchen you want.

New Construction Allowances
If you are having a new home built in a development, your builder will have a pre-set allowance for your kitchen.

An allowance is nothing more than a budget which the builder has established based on the neighborhood, size of the house, price of the house based on the final blueprints and/or product availability from designated suppliers.

Upgrades to appliances, cabinetry, and fixtures are determined by the builder. Make sure you understand what the limits are, and what options (if any) are available to you.

If you are having a custom home built your architect or builder will help you establish your budget before the final plans are drawn.

If you have not done so, we encourage you read, Know Kitchen Allowances, Budgets, Costs . This article contains important information on the various types of builders and what you can expect in the way of allowances, budgets, standards, upgrades and options.

Remodeling Budget
If you are remodeling, determining how much you should spend is harder.

Factors that must be taken into consideration are: the age of the house; current value of the house; and whether you plan to stay in the house more than a few years.

The 5% to 15% Rule
The 5% to 15% Rule is a handy tool to help determine how much you spend on your kitchen project. Basically, the rule states:

The entire kitchen project (including cabinets, appliances, Countertops, flooring, lighting, trim molding, & wall coverings) should cost ... no less than 5% and no more than 15% of the current value of your home ... with approximately 50% of the total cost allocated for cabinets (including hardware, accessories and trim).

5% to 15% Rule - (Sample Kitchen Budgets)

$200,000 House
% of Value	Project Estimate
5%	$10,000
8%*	$16,000
15%	$30,000

$300,000 House
% of Value	Project Estimate
5%	$15,000
8%*	$24,000
15%	$45,000

$400,000 House
% of Value	Project Estimate
5%	$20,000
8%*	$32,000
15%	$60,000

$500,000 House
% of Value	Project Estimate
5%	$25,000
8%*	$40,000
15%	$75,000

* The typical kitchen budget is 8% of the home value

Please remember, this is only a guideline, but it does provide a fairly solid measure when trying to establish your budget.

The High-End Custom Kitchen
Those who want only the best, will find that the use of custom made cabinets, professional appliances, extensive wood moldings, granite/stone Countertops, and high-end materials along with features such as a butler's pantry will greatly increase the cost of the kitchen, rendering the typical budget percentages inappropriate.

Even at the high-end there are limits.

The adage "anything goes" does not apply. The total cost of high-end custom kitchen should not exceed 20% of the current market value of the house. Spending more could reduce your chances of getting a return on your investment.

High-End Kitchen - Maximum Budget - 20%

$500,000 House
% of Value	Project Estimate
20%	$100,000

$750,000 House
% of Value	Project Estimate
20%	$150,000

$1,000,000 House
% of Value	Project Estimate
20%	$200,000

80/20 Rule
All projects have a way of growing beyond initial budgets, no matter what the amount. Plan on spending only 80 percent of what you can afford. Put the additional 20 percent in reserve to cover changes, unforeseen problems, and miscellaneous charges.

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