I have always been taught that the budget should be established right away. This way your designer or interior specialist knows what you have to work with and which products to show you. But what should the client tell their designer? What if they say too little and get embarrassed?
As far as budget goes, you should plan to spend between 5% and 15% of your current home value. If you spend less than 5% you most likely are not getting product that represents your home's true value and quality, not to mention is VERY difficult to do. This will most likely disappoint buyers and affect future resale value.
Now, to the contrary, spending more than 15% could cause you to lose money in the long run. However, a lot of people who remodel are newly retired or just want their home to be what they want. Perhaps they are never going to leave and will not settle for the basic options. For those clients, the percentage of their purchase compared to home value does not matter.
Like most things, there are exceptions to the rules. I hope this helps some of you in determining if and when to remodel!
