When you undertake a major kitchen redesign, a good rule of thumb is that the cost of the design shouldn't exceed 20 percent of the value of your home. You can typically recover up to 8 percent of that when you sell. In a challenging real estate market, a new, shiny kitchen may mean the difference between selling and not selling your home quickly. Other factors, like your local economy, can impact the potential resale value of your home, too, so use some caution when considering a kitchen renovation for the purpose of a quick sale [source: Williams].
There are some other budgetary considerations you should keep in mind. It's more likely that you will go over budget than come in under budget. In anticipation of this unfortunate fact of home design and renovation, hold some of your money in reserve for the unexpected.
Avoid paying in advance for services. If you hold something back, you'll have a bargaining chip if you need to negotiate with the contractor for changes later.