Charlie Nail

Home Remodeling Costs. Charlie Nail, home remodeling guru here, is it time to take a quick look at this scariest step so far?

How many of you are keyboarding with your eyes closed?

You have worked diligently on your home remodeling plan, and this is your moment of truth. In order for the numbers to make sense, have the dimensions of your projects available. If working with an existing room, go measure the length and width. If planning a new project, identify the size. In either case, jot the dimensions down on the page provided in the Home Remodeling Plan Workbook.

Let’s not postpone it any further. Without a doubt, the most reliable source on home remodeling costs nationally and locally would be the annual cost vs value report assembled by Remodeling magazine. Hop over to their site and review the national and local reports. Review the listed project descriptions to compare their numbers with your project ideas. Then come on back and we will keep forging ahead.

You are back. Good. Get out the lists you made in the home improvement remodeling - needs, wants, wishes and why fors planning session. Apply the reality of the home remodeling costs to your “why fors”.

Analyzing the Numbers

As you tackle that repair, the bathroom addition might be a better use of money than the closet. Kitchen upgrades will give you the best return on your investment when considering resale. It is possible to get the look and feel you want, just plan ahead to maximize your future benefits. For that dream home improvement remodel, you can clearly see differences between the average and upscale home improvement costs, forewarned is forearmed.

But you really need that closet? Go back to the home improvement remodeling planning session. Why were you thinking about doing that closet? Weigh that against the length of time you expect to stay in that home. If it still makes sense, then build the closet. It is important to be able to live comfortably in your own home.

The Numbers Don’t Equal the Budget. What Now?

Well, that’s great, you say, but the home remodeling costs are just too high. First of all, it is what it is. To do the kind of project you are considering, it will cost very close to what is listed in the report. There will be variables, but these will not be significant enough to change your pre-planning.

Secondly, the numbers listed represent what a full service remodeling company will charge you to do the work. I thought you were going to do some or all of this work yourself. Ok then, we need to consider this, and we will after you have completed your home remodeling plan. Get comfortable with these home remodeling costs and then let’s figure out how to make it happen. When you compiled your needs, wants, wishes and why fors list, you organized tasks into group headings. Is there a way to subdivide these group headings into smaller stand alone projects? For example, if you put “add closet” with “add basement bathroom”, separate them into 2 projects. If you have a heading that says master bedroom/bathroom suite, can these 2 rooms be remodeled at separate times. I would not recommend starting any stand alone project with the idea of finishing it as the money becomes available. This adds too much of a strain on your ability to live and function properly in your own home. Numbers are still too high? Look at different ways to get more money. I found you unbiased information in regards to home equity lines of credit and 2nd mortgages. These would be the first 2 things I would consider as a way to generate needed funds. If those aren’t going to work for you, how about using credit cards or obtaining personal loans?

Save Money with a Twist

The only other option is to save the money that you will need in order to do these projects. Instead of looking at the total project home remodeling costs and setting aside a certain amount every week, let’s break each project into smaller financial components.

There are 3 major and 1 minor components to any project. Each project will have materials, subcontract and direct labor costs. The minor component could include support services like engineering, architects, permits and other regulatory fees, dumpsters, portable toilet rentals and cleaning services.

When your home remodeling plan is complete, we will be calculating each one of these components in Cost Remodeling. I would suggest that you set aside your savings by components. Set aside the money for each subcontractor and support service that will be needed. Set aside the money for each major product you will buy. As you accumulate this money you could actually order and purchase some of these products, storing them until you are ready. That way, you can still see tangible progress toward your ultimate goal - and it will be more fun.

Finally, there is the direct labor component of your home remodeling costs. After you have calculated this number, don’t remove it from the savings plan. I know that you intend on doing this labor yourself. But, give yourself a plan b from day one. Things may change over the course of your savings plan, you may have to farm out a few more tasks than you anticipate today. You may want to take a certain amount of time off from work to do the project, and you can use that set aside money to pay yourself. Or, economic factors may cause all prices to go up. With your plan b, things like this won’t matter because you have built in a cushion for yourself.

Now review your home remodeling plans - timing is everything. How long is it going to take? When is the best time to do it? Answers are ahead, so see you at the next step in building your home remodeling plan.