6 Hidden Home Renovation Costs That You Should Prepare For
After spending most of the past two years at home, you finally decided to give your home a makeover. You’ve set a budget, finalized the design, and hired a reputable contractor with contractor insurance. But have you taken into account the hidden renovation costs and unanticipated expenses in your budget plan?
The cost of home renovation and remodeling isn’t just determined by the materials you need or the people you hire. The expenses can add up and suddenly rise due to unexpected circumstances.
To help you stay on track, we’ve compiled a list of hidden home renovation costs that you need to prepare for.
1. Change in Scope
One of the most expensive hidden costs of a home makeover is when the homeowner changes their mind. Deciding on a different tile flooring or cabinet design when the renovation is already underway, for example, will cost you more than you think
Changing the scope of a home remodel will dramatically increase the cost of the entire project because, most of the time, while the materials have not yet been delivered, they were already ordered and paid for. Moreover, there is a lot of work behind the scenes that you may not see, but costs a lot of money.
2. Demolition and Clean-up
Most people are so focused on budgeting for the things they want in their homes that they often overlook the cost of demolition work and waste disposal.
You’ll have to get rid of things or break down walls when making substantial structural changes to your home. So, before you start any project, make sure you have enough money set aside for the demolition, dumpster rental, and the cleanup expenses after all the work is done.
3. Building Permits and Restrictions
It’s a good idea to check what permits you might need before you begin renovating or remodeling your home. Certain home makeover projects necessitate permits and the prices vary according to the scope and location of the work.
Permits aren’t free. They can cost you anywhere from a few hundred to thousands of dollars (probably even more, if you live in a large city), but if you don’t get them, you might have to tear down everything you’ve done so far and start again from scratch.
4. Surprise Issues and Structural Changes
More often than not, tearing down your home will uncover problems you didn’t know existed, and fixing them will obviously cost money. Mold, water, damage, asbestos, and insect infestation are some of the worst drawbacks you could encounter and remedying these issues won’t come cheap. Unexpected structural changes to, say for example, a kitchen remodel, can cost you 10-15% more than your original budget.
Avoid getting caught off guard by unexpected issues. Talk to your contractor and explore all the possible hitches before work begins and make sure to include possible structural changes in your budget.
5. Accommodation Expenses
If you think it’s okay to live on-site while the construction is going on, you might want to reconsider your position. Living in your home during a major remodeling will be very inconvenient because of the noise, the mess, and the dust. Also, your presence might just delay some aspects of the project.
You have to factor in accommodation and dining out expenses when planning a home renovation. You’ll also want to make allowances for the cost of moving out and storing your stuff during the build.
6. Bad Estimates
Finding a contractor with a significantly lower bid than the others can seem like you’ve found yourself a great deal, but this may be because there are factors and expenses that they have overlooked.
When planning a renovation project, always take your time looking for reputable contractors and be as thorough as possible when interviewing candidates. A good contractor should be able to set a reasonable budget and identify hidden costs that might arise during the course of the project.
By planning for the unexpected in advance, you can limit the unpleasant surprises and focus on making your dream home come to life.
Author Bio:
Rachel Porter is the content specialist for Custom Contractors Insurance, LLC, a contractors insurance company. When not writing, she enjoys reading and mountain biking with her friends.