I was asked the other day how much a new kitchen costs. It was in a social setting so I answered by asking "How much do people spend on dinner?" The range of answers to that question can run the gamut from $4.99 for "all you can eat pizza buffet" to $2,800 Wagyu steak. My Scotch ancestors would spin right out of the graves at the very thought a single meal costing more than a coach class ticket to Paris so I relate to beer fed beef massaged by soft human hands while listening to Chopin But kitchen remodeling and home improvements can carry price tags that are just as wide ranging.
So how do you decide what it will cost? The only way to really know is to price out the design and get hard numbers. But that doesn't mean you shoot for the moon (only to crash back to earth when the job costs come back). A really good design should be based on two things: client needs / desires and budget. All great designers keep that foremost in mind while developing a plan. So how should you determine your budget?
There are a couple rules of thumb that are pretty easy to follow. We recommend that a client select all the appliances they would like to have for their new kitchen. Easy to do on-line or if you have access to a great appliance store. Every single item should be included from the refrigerator to the disposal. Add them all up.
Client Appliance Selections
Cook-top $1,400
Ovens (two) $5,200
Microwave & Trim Kit $685
Dishwasher (two) $1,900
Ref $3,185
Wine ref $1,200
Disposer (two) $285
____________________
Total $14,955
So how much would this Client's kitchen cost? It is clear that that they are using appliances at the upper (but not top) end of the spectrum. We would expect the kitchen cabinetry, counter-tops, flooring and hardware to of equal quality resulting in a target budget of $74,775. Why? Because appliances are typically 20% of the total cost of a complete kitchen remodel with special lighting and finishes provided serious structural modifications are not being made. How do we determine if this $75k budget is appropriate? The answers to these three questions will tell us:
1. What is the value of the Client's home?
2. How long do they plan to be in their home?
3. Are they comfortable with this budget?
If a client lives in a home with a typical "lot to improvements" value (meaning the value of the land vs the value of the house) then it would be expected that they would spend 15% of the value of their home a complete kitchen "gut" remodel. So with this $74k kitchen, it would be expected that it would be built in a home with a total value of $500.000
On average a kitchen remodel (nationally) will return 68% of the cost. Let's say the homeowner plans on being in their home for a minimum of 7 years. That means that if they only recoup 68% then the kitchen will have cost them $284 per month. Is it worth that to have exactly what they want? Only the client can answer that question but I believe that is a small price to pay to really love something you are going to use every single day, year in and year out. Of course, there are those that believe houses are only property and should be viewed solely as investments. In which case, I say paint it all beige, do nothing more than the minimum maintenance and wait to turn it over to the next occupants. If someone is living the kind of life that requires that they relocate every year of so, then that makes sense. For the rest of us, it really doesn't. (I am reminded of the homeowners I see on the TV show "Designed to Sell". Why do they live in such a mess only to fix things up for the next owners? Wouldn't it be so much nicer to be able to live well in a home while THEY were there? But that is a topic for another time)
"Are they comfortable with the budget?" is a key issue. If a client spends one dollar more than they are comfortable spending, there is nothing that can be done, no kitchen so wonderful, as to erase that buyer's remorse. So avoid this problem be honest with yourself and your designer /builder about how much you want to spend.
So what if you don't live in a $500,000 home? Easy, just determine what 15% of your homes value and that should be your target budget.
I have said it a million times (well almost) "No matter how large, every pile of cash is finite and must be spent responsibly" A true professional will design accordingly. Be honest about your budget to help the project along.
If you have questions about a project you are considering, drop me an email at the contact address and I will do my very best to help! Have a wonderful weekend!
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