How to keep to your budget on a remodel

Before you decide to remodel, the first thing that you need to decide on is the budget. With out the budget set in stone, you are going to have some big time problems. Most people fail to recognize what the actual costs that are involved with a remodel or with most any other home improvement project. So, we will get started from the point the idea has come into your head for a home improvement project. First, what is your source for the money you will need. Next, how much will you have and last, how fast is it available to you. If you are getting a loan, what are your payments going to be for the total amount and what payments can you REALLY afford? figure out what you can afford, find out how much you can borrow with that payment and that would be your max level of budget. Now, lower that by 20% and that is your target budget. I say lower it by 20% because most home projects will and do go over budget by about 10% - 15% if you have a solid contractor doing the work. Now that you have a set budget you can interview and hire a contractor. If the project includes a kitchen, bath or master suite what you will need to do is go out and check the stores for items that you are going to replace, such as: toilet, sinks, tubs, cabinets, hardware, tile, flooring, showers ...etc. It would be very wise to tell your contractor that you will purchase the items, this will allow you to save on his markup which could be as much as 25%.
Most contractors will give you an allowance for certain items, but, keep in mind they are going to make a profit on each item. Next, get the contractors estimate in writing and make sure it lists the labor and material costs separately. This will allow you to see what you are being charged for on his labor and will help you stay on top of your budget all the way throughout the project. The costs of the permits also have to considered when figuring the budget as well, you will need to contact your local building dept to find out what it will cost for all the required permits. Then it will be advisable for you to draw up your own plans (if possible) and submit them to the town. This could save you a large amount of money. Most states allow the homeowner of a single family dwelling to draw his or her own plans and usually the local official will be very helpful in advising you what will be required on the drawings.
Now your ready to start your project. Along the way there will be some pitfalls that will cost you, but, at least you will have the extra cash in your budget to be prepared for most anything that comes up. Just remember that your contractor MUST give you a written estimate for anything that does come up before he or she performs the work. Last but not least, never pay your contractor the last payment until the town officials have passed the project on its final inspections, not only is this wise as a consumer, ITS THE LAW.

Robert Appel
www.peakimprovements.com