Remodeling part of your home is a great way to increase your home’s value and make the space more functional for your family. More homeowners are finishing basements so that they can double as guest rooms, creating an open floor plan in the kitchen, and looking for ways to expand the master bedroom. Not only do these remodeling projects increase a home’s resale value, but these projects are also great ways to create more room for a growing family instead of buying a new house.
While home remodeling can save your family money you might spend on a new home purchase, remodeling projects can hold hidden costs that could make you spend more money than you intended. If you’re starting a new remodeling project, be sure to plan for the following three forgotten costs.
Watch for Change Orders and Changed Minds
You could change your mind somewhere during the remodeling process. You might choose the perfect tile sample and then decide you must have the more expensive style. You could also decide on extra design features that take more of the contractor’s time and more of your money. While these decisions aren’t necessarily bad ones if they make you happy, they can cause you to go over budget quickly.
Make sure any change orders get approved and recorded in your budget, including time and labor costs. Even if the tile and extra features are in the budget, the labor costs might put you over budget.
Be Mindful of Bulk Hauling and Dumping Fees
Depending on the scope of the project, you could create a dumpster’s worth or more of scrap. If you’re tearing up the carpet and replacing your carpeting with hardwood or remodeling a room with bulky appliances, such as a kitchen or bathroom, then you’ll have objects and junk to dispose. Many companies measure the cost of junk removal in cubic feet, and you could pay between $100 to 500 per truckful of refuse. Be sure to research special objects such as refrigerators and paint before dumping them, as some companies won’t haul away these types of products.
Create a ‘Bad Surprise’ Budget
Even if you account for other hidden costs, you could discover a negative surprise to arise and drive up the costs of a renovation. For example, you might discover mold in your bathroom that you need to treat or asbestos in your attic that needs you need to remove. Termite damage and plumbing leaks are also common problems in the home that won’t show themselves until the project starts. To account for unexpected discoveries, set aside 10 percent of your budget for “mystery problems” or “bad surprises” that could occur during remodeling, so that termites or mold don’t cost you more than you planned to spend.
Close to a million minor expenses can drive up the cost of your renovation plans. These expenses can include an increased electric bill from all the appliances at work to an increased food budget if you’re dining out often during the remodeling. By keeping an eye on your daily expenses and following the tips above, you can finish your remodeling project closer to your budget.
Image via Flickr by Brock Builders