Choosing to remodel your home is an exciting decision, but one that must come with proper budget planning. Remodeling can have many planned and unplanned costs; some you may have never considered before. That’s why it’s crucial to hire a contractor with experience, transparency, and a great reputation. Thankfully, managing budgets and planning for these unexpected costs is what the Lynch team does best. Our goal is to make the budget planning phase as smooth and stress-free as possible!
Here, the professionals at Lynch Design | Build outline the hidden costs of a remodel that you’ll want to budget for before starting a project, as well as common mistakes people make in an effort to save money. We will also outline ways you can navigate these obstacles so you don’t blow up your budget.
Revealing the Unseen Expenses of Home Remodeling
Demolition Costs
The demolition phase of remodeling projects creates debris. Debris can range from a few scraps of sheetrock to a dumpster full of old cabinets and appliances. Discarding demolition debris is a necessary part of the remodeling process, but it can come at an extra cost for remodelers depending on the type of project. We recommend discussing the debris remodel process with your project manager so you can accurately allocate funds toward this potential expense.
Storage
While renovating your home, you may find that your basement or spare bedroom can serve as a convenient storage solution for some belongings. However, when the volume of items to be moved exceeds your available space, it’s essential to consider budgeting for temporary storage fees at a nearby facility.
Temporary Living Accommodations
If your home remodeling project involves extensive construction that renders your home temporarily uninhabitable, you might need to find alternative accommodation during this period. If you can’t rely on the hospitality of friends or family, you should consider budgeting for a hotel or Airbnb stay while your home is undergoing renovations.
Convenience Expenses
Major home remodels, such as kitchen remodels, temporarily uproot your day-to-day life. If you are unable to cook or do laundry at home because of your renovation project, you may need to temporarily pay for laundry services, food delivery, or takeout more often than you normally do. These convenience options often come with a higher price tag and these expenses can add up quickly. Remember to set a monthly budget for these convenience expenses. Having a line item in your budget for dining costs will help limit surprise expenses like last-minute takeout.
Delaying the Timeline with Bad Permits or Poor Planning
For a hassle-free renovation experience, effective pre-planning is essential before your contractor commences work. A key step in this process is ensuring that you’ve obtained all necessary permits and taken responsibility for ordering required materials before the renovation project kicks off. By doing so, you can proactively avoid potential delays and keep your project on track as scheduled.
Property Taxes and Homeowners Insurance
If you’ve made major changes that significantly increase the value of your home, it is possible that your property taxes and homeowners insurance may also go up. This increase is unlikely to be felt immediately after completing your home remodel, but depending on your municipality’s assessment schedule, you are likely to see an increase to your property taxes within the next two to three years. Homeowners insurance premiums may also rise once the home is reassessed, when shopping for another insurance provider, or at renewal.
Avoid These Costly Remodeling Mistakes
Not Hiring a Professional
Sometimes, homeowners attempt to DIY their renovations to save a few dollars. If you’re handy, this can be a great choice for smaller projects, such as framing out a new closet or painting a bedroom, when mistakes won’t be too costly to repair. However, the larger the remodel project, the more expensive mistakes can be to fix. When it comes to large-scale renovation projects, it’s best to leave it to the professionals and avoid adding to your renovation costs with pricey mistakes that need to be corrected.
Underbidding to Get the Job
It is always a good idea to get multiple quotes when looking for someone to complete your home remodel project. Most reputable contractors should come in with bids in a similar range for similar jobs. However, in an effort to get you to sign on the dotted line, some contractors will drastically underbid the project to subsequently find ways to add on to your budget later. A significantly lower bid can be a red flag that this is happening, so make sure you’re comparing apples to apples. Examine the details of competing bids closely to make sure they include equal elements. Are all materials accounted for in all bids? Does one bid require significantly less labor than another? Keep in mind that the lowest bidder isn’t automatically your best choice.
Begin Your Home Remodeling Project with Lynch Design | Build Today
The value you can get out of a renovated home is truly limitless. At Lynch Design | Build, our years of experience help us to create accurate budget plans for our clients and predict where unexpected costs may arise. Our team is passionate about working with Maryland homeowners to bring out their home’s potential. To talk to us about remodeling the home of your dreams, or to learn more about our home remodeling services, contact us today by calling 410-879-5510.
