12 February 2009

5% to 15% Rule
The entire kitchen project (including cabinets, appliances, Countertops, flooring, lighting, trim molding, & wall coverings) should cost no less than 5% and no more than 15% of the current value of your home ... with approximately 50% of the total cost allocated for cabinets (including accessories and trim).

5% to 15% Rule
$200,000 House
% of Value Project Estimate
5%$10,000
8%*$16,000
15%$30,000
$300,000 House
% of Value Project Estimate
5%$15,000
8%*$24,000
15%$45,000
$400,000 House
% of ValueProject Estimate
5%$20,000
8%*$32,000
15%$60,000
$500,000 House
% of Value Project Estimate
5%$25,000
8%*$40,000
15%$75,000

The High-End Custom Kitchen
Those who want only the best, will find that the use of custom made cabinets, professional appliances, extensive wood moldings, granite/stone Countertops, and high-end materials along with features such as a butler's pantry will greatly increase the cost of the kitchen, rendering the typical budget percentages inappropriate.
The total cost of high-end custom kitchen should not exceed 20% of the current market value of the house. Spending more could reduce your chances of getting a return on your investment.

High-End Kitchen - Maximum Budget - 20%
$500,000 House
% of Value Project Estimate
20%$100,000
$750,000 House
% of Value Project Estimate
20%$150,000
$1,000,000 House
% of ValueProject Estimate
20%$200,000

80/20 Rule
All projects have a way of growing beyond initial budgets, no matter what the amount. Plan on spending only 80 percent of what you can afford. Put the additional 20 percent in reserve to cover changes, unforeseen problems, and miscellaneous charges.

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