You just moved into your new house, but the house calls for a little touch-up. So, you’ve decided to renovate! You have all incredible ideas drawn upon your mind, you have identified your builders and have set up your budget.
While you may be utterly excited by your prospects, the actual process of renovating your home can be inconvenient and messy. Not only will you have to put up much of your time and effort into the process, but you will also have to deal with the hassle of coordinating your builders.
With all these things involved, the last thing you would probably want as a homeowner is a huge price tag from the basic expense such as cost to paint a house. Even so, you can always expect a number of additional costs that aren’t included in your contractor’s bid. But how can you be able to identify these costs?
This article will give you an in-depth analysis of different elements that can add up costs to your original remodeling budget. Hopefully, they will go a long way in helping you keep your sanity during the process as well as saving you an extra change in your pocket.
1. Water damage costs
One of the most heinous damages that you can expect in your house is water damage. While this is a common occurrence, damages to pipes are highly unlikely to be known early enough.
When remodeling your home, you should always budget for water system repairs. This is because chances are that you won’t find any water damages until you tear down your walls to start remodeling.
One significant way of preparing for such damages is by closely monitoring your water bill regularly. This way, you will be in a better position to know whether your water system has a leak or not.
Otherwise, you can always expect damages to be made on the system by the contractors accidentally. Even so, you will still have to be prepared for the costs to repair the broken parts.
Where there’s water leakage, you can always expect the presence of mold. Even more devastating is the presence of black mold, which is often toxic and can put the entire project on a halt.
But how can you prepare to deal with the costs associated with mold beforehand? Building experts recommend seeking the services of a trained mold inspector to thoroughly inspect your house before renovating.
This way, you will be able to properly budget for the expenses that you will incur in removing the mold.
3. Cost of Demolition
While a vast majority of homeowners budget on all the new things they are going to include to their house, they tend to forget budgeting for the actual cost of demolition.
The cost includes labor costs to actually bring down the existing structures and the cost of disposing of the materials to the designated landfill.
Unless you plan on doing the actual demolition yourself, it’s of utmost importance to set aside a significant amount of money to cover these costs. While at it, don’t forget to add the cost of disposing of the materials.
4. Higher Home Insurance
If you are a homeowner, you probably know that the price of home insurance cover solely depends on the value of your home. So how does renovating your home make the insurance cover pricier?
Once you carry out renovations on your home by adding more utilities, your dwelling coverage is set to rise. This means that you will have to part away with more money to cover your insurance claim.
While this is a good thing, most homeowners fail to update their home insurance cover. This way, they become under-insured, thus standing to lose more in the long run.
In a bid to keep your entire remodeling project within the set budget, you should ensure to update your home insurance cover once you complete the project.
This way, you will rest assured that your home, including any additions from your renovations, is adequately covered from any uncertainty.
While permits are rarely required when remodeling, some states and countries require permits for certain renovations, depending on the magnitude. If you are required to seek a permit for your home renovations, you should remember that they don’t come free.
Most often, home renovation permits are priced depending on the size of the job and the location of your home. Even so, you should always include the charges in your remodeling budget.
The bad news is that you cannot work around the cost of the permits. This is because you will be required to remove all the renovation projects once you decide to sell. So, ensure to do thorough research if you will be required to have a permit before doing a renovation. If so, do your due diligence to secure one.