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Constance Shook

How to Determine Your Remodeling Budget

How to Determine Your Remodeling Budget

So, you’ve decided to remodel your home. The hardest step is over, but now it’s time to crunch the numbers. You’re probably asking yourself, how much does a remodel cost? Researching on the internet isn’t helping, only causes you more confusion. Residential remodeling is nothing like building a new home. Remodelers do not base their price per square foot due to outrageous prices. Most remodelers, like Greymark , use a fixed-price contract that allows the client to build to their budget. This helps the client stay within their budget while checking off their must-have list.

How much does a remodel cost?

Many factors go into determining a remodeling budget. Materials, labor, management, and selections are deciding the final cost. Currently, material and labor costs have doubled due to the pandemic and supply shortages. Take into consideration the climate when putting together your budget. Greymark has a base price for their major remodels shown below:

  • Kitchen $75,000+
  • Bathroom $60,000+
  • Whole House $200,000+
  • Addition $100,000+

How do I determine my budget?

Step 1: Establish investment range

Take a look at your finances and determine what investment range will better suit you. Consult your banker for loan options and financial advice. Knowing your bottom and top numbers will help you make decisions faster and give your builder a clear vision.

Step 2: Research ballpark costs

Looking into the and remodeling business fluctuations will give you a clear view of what to expect when asking contractors for estimates. Currently, labor and material costs reflect the same inflation issues the stock market is facing. Taking the economy into consideration when planning your remodel will prepare you and allow your priorities list.

Step 3: Prioritize your needs vs. wants

Realize that you might not get everything you want in your remodel due to budget restraints. Be ready to minimize your list down to the things that will determine you loving your new space. Having a needs and wants list will also help your builder identify what work is important to you. Always consider breaking your project into phases, but only if it fiscally makes sense.

Step 4: Talk to Professionals

Shopping around for the perfect contractor is the most important thing a homeowner can do when working on a remodel. Ask neighbors, friends, coworkers, and family members for a builder they trust. Having a trusting connection with your builder will make or break your remodel process. Hiring a builder that you can rely on and have faith in makes the already stressful process smoother.

How much should I spend on my remodel?

If you search for this question on the internet, you will get a range of answers. There isn’t a specific number that a project should cost. When trying to nail down that investment range, think about the area you live in, the state of your house, your equity in the home, and how much you can afford to spend. Remodeling your home should be a personalized project that should fiscally make sense.

How do I pay for my remodel?

Many homeowners decide to apply for a loan to pay for their remodel. Below are the best loan options for homeowners, aside from paying in cash.

Cash-out Refinance Loan

A cash-out refi loan is perfect for homeowners with built-up home equity. The bank grants homeowners more money owed on their mortgage, giving them the difference in cash. Using a cash-out refi for a home renovation project works because the interest rates are low and allow homeowners to pay back over time.

Home Equity Loan

While a cash-out refinance loan replaces your current mortgage with new terms, a home equity loan can be an additional fixed-rate loan. Considered a second mortgage, it allows homeowners to borrow money by leveraging the equity in their homes. The loan comes in one big lump and is paid back in monthly installments, just like an original mortgage.

Home Equity Line of Credit (HELOC)

A HELOC extends a line of credit from which you can withdraw funds as you need, like a credit card. Once you begin making payments, the available credit is replenished. You can always borrow against it again until the draw period ends. With a HELOC, homeowners are borrowing against the available equity in their homes. A HELOC often has a lower interest rate, making it perfect for larger expenses.

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Rest assured with our Greymark Guarantee. We stand by our work, offering warranties for every aspect. We warranty our work for one year for workmanship, two years for all mechanical, electrical, and plumbing, and six years for structural. However, our goal is that we’ve built your project where the only calls we get are ones where you are gushing about your home. Your investment in us is reciprocated with our commitment to excellence.

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