Hello again.

In this video - the 2nd in our remodeling series, it's time to get serious. We're going to show you the fastest and best way to take those ideas you came up with after the 1st video - and fit them to your budget so you can start enjoying your remodeled home faster than you ever thought possible.

Of course, we want you to be able to enjoy your home for years to come, so just follow these simple steps.

One. If you do not already have a budget for all your living expenses, take the time to create one. When you do, you will have a better idea of the amount you can and should spend on your remodel.

Two. Determine the method by which you would like to pay for the remodel. Paying cash is typically the most popular choice but there are financing options available. Home equity loans and lines of credit are used. Depending on the value of your home and current mortgage, refinancing could also be an option. An experienced remodeler can recommend a good loan officer to help you through the process.

Three. Plan on using the money that you have today to make the payments for the remodel. Yes, remodeling projects often do increase the value of your home and you can re-coup the money spent when you re-finance or sell your home. But, we say 'use the money you have today' because we've seen people pay more than they should for remodels and then bank on getting refinancing quickly. When market conditions change and area property values fall, refinancing or selling at higher prices is not always possible.

You may not except to hear this advice from us - as remodelers - since many others in the industry would suggest stretching your budget because real estate is such a great place to invest.

But stretching budgets does not allow for stress free living. We want to make sure every aspect of your remodeling project including the investment you make in it are as stress free as possible.

Four: When considering a remodeling project, make sure the investment makes sense for your area. If you live in an area where home values often reach $5,000,000 and you are in an older home valued around $700,000, then a major remodeling project could greatly increase the value of your home. Other the other hand, if you live in a neighborhood of homes from 1 million to 2 million and yours is already in the 2 million range, adding a 1 million addition would put your home well above the value of the others in the area. Seeing your return on investment in this situation would not be as likely. We always want to ensure your remodeling project gives you exactly what you desire while providing the maximum return on your investment.

So, now for the numbers.

We are often asked, "So how much will it cost to do this." In our industry, that is very hard to say since there can be such a huge variation in costs due to the selections.

For example, do you want $3,000 pre-fabricated kitchen cabinets or the handmade, designer kitchen cabinetry for $100,000?

Still, you can start to get an idea based on the square footage of the space you would like finished. If you have the plans for your home, you can find the square footage listed on them. Otherwise, using a tape measure may be a bit laborious, but you can find the square footage by using one. Simply measure the length by the width. If a room is 10 feet by 20 feet, you multiply 10 by 20 to know that your room is 200 square feet. Add all the rooms together and you have the square footage.

Based on the selections made, for home renovations the price per square foot typically ranges from $50 per square foot to $300 per square foot.

Basement finishes typically range from $30 per square foot to $100 per square foot.

This should help give you an idea of what type of prices you may find, but of course, all of this can be confirmed by talking with an experienced and reputable remodeler.

They will be able to provide exact pricing and be able to fit the remodel to your specific budget. They can also show you examples of past project that fit within the specified range.

Then, it's time to put all the pieces together and make it happen. That's exactly what we'll show you how to do in the next video, so work on your budget now and keep an eye on your e-mail for the link to the next video.