Skip to main content

«  View All Posts

How to Create a Remodeling Budget

February 23rd, 2018 | 2 min read

By Michael Flory

Couple examining paperwork

Many homeowners share with us their challenges trying to establish a budget for their remodeling projects. This is completely understandable. It also make sense for a homeowner to get a good idea of what to expect as a realistic budget or budget range for their project before making decisions and or moving forward with remodeling project design.

With all that in mind let’s look at some of the reasons establishing a remodeling project budget can be changeling. And, at the same time, offer you some advice and some paths to help you determine a realistic budget for your project.

Your Budget is Your Budget

Some home owners do actually set aside a budget for their projects. This budget may be either what they are willing to spend or could be all they are really able to spend. Either way it’s a good idea to determine a budget before you meet with a Lansing area contractor.

If you do so, and you meet with a trustworthy contractor with a good reputation in your community, that contractor can help you determine whether your budget will be adequate for the project you have in mind.

Also, by sharing that budget, as well as your true purpose for remodeling, if your budget isn’t adequate the contractor may be able to help you “value engineer” your project to meet that budget. 

What that means is because the contractor knows your true purpose, and if that contractor has wide experience with building methods and various products like we do here at Custom Built, that contractor may be able to help you find alternative and or creative ways to design and complete your project, all within your budget.

Your Budget vs. Remodeling Cost Reality

Woman thinking about finances

Some homeowners may not know what their project will cost but we find most have an idea of what they are hoping it will cost. In the past some of our customers have told us they were afraid to share this budget because they didn’t want to look or feel stupid if their budget was unrealistic. 

Some even told us they didn’t want to risk insulting a contractor by suggesting a budget that proves to be inadequate. Don’t worry about that with us. At Custom Built we have helped hundreds of homeowner determine a realistic budget range for remodeling projects.

Here are three directions our customers have pursued after helping them recognize a realistic budget:

1. They decide the project is too expensive and do not go forward.
2. They decide the project is still worth it but will hold off as needed to save more money or seek a loan.
3. They decide the project is worth it and decide to increase their budget so they can go forward.

Your Budget is a Starting Point

Some of our customers have come to us with a realistic budget for their project and have decided to move forward with our Project Development Agreement so we can begin the Custom Built design process.

Using our process we manage the design by keeping the design and products selected within the agreed committed budget range. However often times during design homeowners become aware of project details and products they were not yet aware of. In these cases we can help them determine the additional costs of adding these items and details.

But, as per our Project Development Agreement, we cannot add those items to your project design unless you first confirm with us your decision to increase your project budget.

In some ways we are the keepers of your budget as we work together to design and complete your project.

Michael Flory

Michael brings over 2 decades of building and remodeling experience to his position as the Owner and Visionary of Custom Built. Michael’s passion to make an impact on the home building industry has led him to serve for over ten years at the local and state Home Builders Association, culminating as President of the HBA of Michigan in 2020.