Embarking on a home remodel is an exciting journey that promises to breathe new life into your living space; however, without proper budgeting, what starts as an exciting project can quickly turn into a financial nightmare. Whether you’re a homeowner ready to refresh your space or an interior design enthusiast looking to transform a client’s home, mastering the art of budgeting is crucial. Here’s everything you need to know to budget effectively for a home remodel in Chicago.
Before diving into the details, it’s essential to understand why meticulous budgeting is critical for a home remodel:
Start by defining what you want to achieve with your remodel. Are you looking to increase the functionality of your kitchen? Do you want to add a new room or simply update the aesthetics? Are you looking to undergo a remodel with the intent of listing your home for sale or to spend several years loving and living in the space? Clear goals will guide your budgeting process and help you focus on what’s most important.
Once you have clear goals, it’s time to research and gather estimates. This includes partnering with a designer who can walk you through material options and generate mood boards and an ideal layout based on your likes, dislikes, and design style. Once you have a design and layout in hand, work with a general contractor to determine labor and rough material costs based on your design drawings and material selections. Always budget for unexpected additional expenses that may arise.
Buying a home is the highest cost purchase a person is likely to buy during their lifetime. Undergoing a remodel on your most expensive asset is not to be taken lightly. Once you have obtained 2-3 estimates, create a detailed side-by-side budget comparison to ensure you are reviewing apples to apples. Create an extra column where you can list out the pros and cons of each company that doesn’t necessarily have a price tag attached to it – the company’s perceived value and offerings.
Once you have the values listed, rank them based on your personal priorities and preferences.
Does the general contractor have an in-house design team?
Do you have to project manage your own remodel?
Who sources, orders, and stores material until it is ready at the job site?
Who files the permits?
What is the warranty period for labor and materials?
What do online Google reviews say about the company?
Did you connect with prior clients for a firsthand referral?
Did you visit active job sites?
If your budget exceeds your available funds, consider various financing options. These may include personal savings, home equity loans, unsecured loans, or lines of credit tailored for home improvement.
Once your project is underway, keep a close eye on your spending. Regularly compare your actual expenses to your budget to ensure you’re staying on track.
One of the most common mistakes is underestimating the actual costs involved. Prices for materials and labor can fluctuate, so it’s essential to have a 5-10% contingency built into what you plan to spend on your home remodel.
Small details such as fixtures, finishes, and accessories can add up quickly. Ensure these are included in your initial budget.
Depending on the scope of your remodel, you may need permits or stamped architectural drawings. Failing to account for these can result in fines, delays, or even stop work orders from your local government agencies. Working with a trusted design-build firm that knows what restrictions and processes must be followed will allow you to focus on other aspects that are a more efficient use of your time. Let your contractor handle the heavy lifting of navigating approvals and permitting.
Budgeting for a Chicago home remodel may seem daunting, but with careful planning, diligent tracking, and the right design-build partner guiding the way, it’s entirely manageable. By setting clear goals, researching thoroughly, comparing costs and value, securing the right financing, and tracking your expenses, you can transform your living space without breaking the bank. Remember, successful remodeling is not just about having a beautiful end result; it’s also about enjoying the process and maintaining financial peace of mind.
Ready to start your home remodel journey? The Chicago home remodeling team at Areté Renovators is ready to talk to you about your remodel goals and get started today. Call the Areté design and build team at 773.683.3033 to schedule a complimentary phone consultation to review your project ahead of meeting for an in-home consultation. Our in-house design team at Areté The Art of Design looks forward to working with you on creating an ideal layout that maximizes your space and delivers on your authentic design aesthetic.