Remodeling Budget
A remodeling budget can be a complicated thing to figure out. The main thing is of course figuring out how much can you actually afford to spend as well as how much time are you willing to be living in the middle of a remodel or if you can afford it, living elsewhere.
Some obvious things not to do:
- Do NOT cash out all of your stock and other savings.
- Do NOT borrow money you cannot hope to repay
- Do NOT count on expected income or an inheritance
Overall, look at your finances and consider what you have saved and once that is gone, ensure that you will still be ok should the unexpected occur. You can also certainly consider refinancing and pulling money out of your mortgage or securing a construction loan.
Remember that in the Bay Area, remodeling costs are higher because labor costs tend to be higher. Know also that California cities enforce some of the strictest codes because of earthquake and fire risks in the area.
After you have figured out how much money you are able to spend, I would say reduce that value by 20-30% and use this new number as a maximum with any architect or contractor you deal with. By taking a hard look at your budget, you may be able to narrow your focus of what you actually plan to remodel. A $10,000 budget is great if a cosmetic upgrade is all that's required. Expanding the house, or tearing down walls might set you back a little further.
As for time, never try to time a remodel to be done before a certain event. My goal for my project was to have the house done by Thanksgiving. Of course, I didn't say which Thanksgiving so I'm still on track... but things tend to happen that you overlook or did not know about until construction actually starts.
From beginning a project until completion, the following are typically areas you will spend time on:
-Planning/working with an architect
-Permitting/City approvals/Meeting Contractors
-Construction/Rough Install
-Finishing
Do budget time in the beginning to figure out what you want and to meet with architects and contractors to finalize your plan. I remember being quite surprised to hear someone say they planned their remodel over the course of a year! However, from my experience, it can take that long or more to understand all the details of your project. Working with an architect can save you time, but only if you find someone who will listen to you and accommodate your style. It does not hurt to talk to contractors and architects throughout the early stages of the process as you might get new ideas from each of them.
A colleague of mine once said to me that construction jobs always take twice as long and cost twice as much. While this isn't always the case, it does highlight the optimism of some contractors and how unforseen obstacles will slow things down. The best advice I can give is to roll with the punches, arm yourself with as much knowledge as you feel comfortable with, and see this whole thing as a valuable learning experience.
Some obvious things not to do:
- Do NOT cash out all of your stock and other savings.
- Do NOT borrow money you cannot hope to repay
- Do NOT count on expected income or an inheritance
Overall, look at your finances and consider what you have saved and once that is gone, ensure that you will still be ok should the unexpected occur. You can also certainly consider refinancing and pulling money out of your mortgage or securing a construction loan.
Remember that in the Bay Area, remodeling costs are higher because labor costs tend to be higher. Know also that California cities enforce some of the strictest codes because of earthquake and fire risks in the area.
After you have figured out how much money you are able to spend, I would say reduce that value by 20-30% and use this new number as a maximum with any architect or contractor you deal with. By taking a hard look at your budget, you may be able to narrow your focus of what you actually plan to remodel. A $10,000 budget is great if a cosmetic upgrade is all that's required. Expanding the house, or tearing down walls might set you back a little further.
As for time, never try to time a remodel to be done before a certain event. My goal for my project was to have the house done by Thanksgiving. Of course, I didn't say which Thanksgiving so I'm still on track... but things tend to happen that you overlook or did not know about until construction actually starts.
From beginning a project until completion, the following are typically areas you will spend time on:
-Planning/working with an architect
-Permitting/City approvals/Meeting Contractors
-Construction/Rough Install
-Finishing
Do budget time in the beginning to figure out what you want and to meet with architects and contractors to finalize your plan. I remember being quite surprised to hear someone say they planned their remodel over the course of a year! However, from my experience, it can take that long or more to understand all the details of your project. Working with an architect can save you time, but only if you find someone who will listen to you and accommodate your style. It does not hurt to talk to contractors and architects throughout the early stages of the process as you might get new ideas from each of them.
A colleague of mine once said to me that construction jobs always take twice as long and cost twice as much. While this isn't always the case, it does highlight the optimism of some contractors and how unforseen obstacles will slow things down. The best advice I can give is to roll with the punches, arm yourself with as much knowledge as you feel comfortable with, and see this whole thing as a valuable learning experience.
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