What You're Probably Forgetting to Include in Your Redesign Budget
Project: Newlyweds in Kensington
Photo: Kate Raines
When budgeting for a project I find that homeowners and entrepreneurs budget for all the things that are tangible—the furniture, fixtures and built-ins. But there are several other items you should be including in your budget that really do add up. But no worries, I'm going to list these items here so that you can account for those expenses. The less surprises down the line, the better!
Shipping + Freight Costs
These fees can easily add 10% - 15% to the cost of all your product. Many smaller items like lamps and light fixtures will arrive in boxes, while other items like appliances, cabinetry, large rugs, furniture, and tile will require a truck that needs to be scheduled in advance for delivery and a crew to load and unload the goods carefully.
Sales Taxes
This expense is such a huge part of our everyday lives, so it’s easy to forget about when ordering furniture, art and accessories. But if you’re ordering all the items for a living room, and your budget is $30,000, I can almost guarantee that most aren’t factoring in sales tax. If you’re in New Jersey where the tax rate is 6.625%, that $30,000 quickly turns into $31,987.50—that’s almost two thousand dollars that wasn’t accounted for.
Receiving + Storage
I can guarantee you’re not going to want your brand new, custom upholstered sofa in the middle of a construction site. When anything gets damaged on a job site, it’s a headache trying to get that issue resolved. Those involved start pointing fingers, and it often ultimately comes down to, “why did you have that valuable piece onsite in the first place?” For projects that involve furniture selection we work with receiving warehouses. We have product delivered to them, then they inspect everything and make us aware of any damages. If needed, we contact our vendor to remedy any issues. The receiver keeps the goods in their facility until we’re ready for furniture installation.
Any furniture that you plan on keeping needs to be moved to another area or completely offsite—this is the case with full home renovations. That also requires renting storage space for at least a few months.
Movers
Movers can cost thousands of dollars depending on the size and complexity of a project. They are doing tough work and they have a huge amount of responsibility, so their fees need to cover things like liability insurance in case anything gets damaged. There are also specialized movers for items like artwork and pianos. If you’re in a multi-story home with a tight staircase you’ll need a mover that has the ability to hoist or crane large pieces to a deck or through a window.
Professionals’ Fees
Whenever I see the budget tally on a home improvement show I never see a number for their fees other than materials, contractor labor, and product which is causes huge misconceptions. Major renovations, additions or new construction project often involve an interior designer, architect, and structural engineer. All those professionals need to be compensated appropriately. They need to complete their work for the contractor to have any kind of direction during construction.
Final Thoughts
The clearer you are on what to include in your budget, the more confident you’ll feel about the entire process. That’s why we’ve developed a process that includes review of the budget in conjunction with your design so you can decide where you want to save versus invest. The first step is scheduling a commitment-free 30 minute information call.
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