Home renovations are a financial investment that most homeowners prepare for by adding up all of the potential costs associated with hiring a renovation contractor and purchasing materials and new appliances.
These costs do take up the bulk of the total renovation costs, but there are several other costs that homeowners forget about in the excitement of a renovation that can quickly bloat a tight budget.
Planning ahead for the little things in your budget is essential. Let’s examine the 6 most common costs homeowners overlook that can put a strain on renovation finances.
Unless the cost of installation was included in your new appliance purchase, you’re going to have to factor professional installation into your budget.
Unfortunately, new appliances aren’t always as simple as a plug-in to an outlet. Many require extra installation steps like running new gas lines, installing new water hookups, and the installation of new circuit breakers.
All of these tasks will add to your renovation bill and the costs will vary based on the type and model of appliance your purchase.
Most major renovations require obtaining permits. The variance between the costs of permits is extremely vast. Small towns could charge as low as $100 for permits while larger cities could charge several thousands of dollars.
The devil is always in the details and permit costs will be based on the location of your property and the depth of your actual project. The average cost for permits is around $1,200. So, it’s best to plan ahead and start factoring this one-time payment into your budget.
Short-Term Routine Changes
If you’re planning a total home renovation, your family is going to experience some drastic short-term changes in its routine. The dust and construction may not create the best environment for preparing meals or sleeping in your home.
Dining out regularly and staying in hotels is a common way to prevent major life disruption during a renovation. However, these costs can quickly add up and put a strain on your finances if you haven’t factored them in ahead of time.
Land surveys for exterior renovations are important because they guarantee that you aren’t building your new project on your neighbor’s property. It’s easy for property lines to blend together over time.
So, save a couple of hundred dollars in your budget to order a land survey that could save you thousands of dollars in the long term.
Hidden Home Surprises
Nothing is worse than being financially unprepared for hidden plumbing or electrical that could be damaged during the renovation process or discovering a massive pest problem, mold, or mildew.
All of these surprises can add to the cost of your renovation, and if you’re unable to meet those costs, your project could indefinitely be put on hold.
Before starting the job, make sure that your renovation contractor helps you understand common renovation issues that could arise and helps you prepare your finances for successful completion.
Expanding Insurance Coverage
Once your project is complete, it’s time to enjoy it and also prepare to pay more on your monthly insurance premiums. When a home’s value increases after a renovation, insurance costs typically increase in order to ensure your property is appropriately covered.
It’s always recommended to increase your coverage with your insurance company after a renovation. After all, should disaster strike and you haven’t done so, your insurance may not cover your new additions, leaving you with thousands of dollars wasted and a ruined renovation.
How Can the Right Contractor Prepare You for Potential Costs?
The right renovation contractor for your renovation is going to be one that values honesty above all else. Getting a renovation in Dallas or the surrounding area almost always leads to the costs we described above (especially those hidden surprises).
So, as long as a contractor conducts a thorough survey of your property before giving a final estimate, an honest one will be sure to inform you of the potential additional costs involved with your renovation.
At Shepherd Renovations, we never surprise our clients with a new cost and always encourage them to increase their budget by at least 20 percent to cover any emergencies that would otherwise halt progress.
Keep Your Renovation Costs Under Control With Shepherd Renovations
Trust Shepherd Renovations to guide you through the renovation process from planning to the final details of your project. We are here to be your partner in progress and have the experience you need to ensure you don’t overextend your budget.
Reach out to us today to schedule your inspection and estimate appointment. We’re ready to build a brighter future for you!