Yes, There are Going to be Unexpected Costs to Your Home Renovation or Remodel

Entering into a home remodel/renovation project is a journey into the unknown for most homeowners.  The myriad of decisions and possible pathways that can occur may leave even the most levelheaded individuals in a daze.  This though can be alleviated to some extent.  With a decent amount of well-executed preparation and research prior to the project's start, hopefully, the level of uncertainty can be diminished.  To say by doing this prior work will guarantee a stress-free project is naïve.  In EVERY residential renovation/remodel project, unknown circumstances WILL occur.  These can manifest in the form of greater costs or increased time, each extremely detrimental to both the client and contractor.  Below we would like to briefly focus on those circumstances which could affect the bottom line.  Some of the situations described have the ability to be planned for, but are not always obvious; others will be completely unknown until the project commences.  Either way, by staying focused on what is trying to be accomplished by the project as a whole, and not losing sight of the finish line, these hiccups, while painful to your pocket, will be overcome.

1. INDECISION AND CHANGING YOUR MIND

This is one of the most important factors and one that is completely in your control as a homeowner.  Ideally, all decisions should be made prior to job commencement.  When decisions are made or changed once work has started, increased costs can add up quickly in a fashion that is not always obvious.  Additionally, changes are not always economically feasible.  For instance, just because a product has not arrived at the job site, does not mean that it is not already produced or is currently in production.

2. BRINGING THE HOME UP TO CODE

Older structures run the risk of being built in a manner that is no longer acceptable by modern building codes.  During construction, elevated costs may occur if the plans need to change in order to stay compliant with the most up-to-date building requirements.  A prime example of this is energy sustainability and the necessity for homes to be much more efficient compared to practically having no regulations in the past.  

3. WHAT THE WALLS ARE HIDING

It is nearly impossible to know the condition of the inner structure of your home prior to the start of demolition.  Whether you have a younger or older structure, it is not until the walls come down that your contractor will learn if the building plans can move ahead as anticipated.  If there are problems, they are most likely because of two possible types of structural issues.  Issues due to water damage/pests or issues related to how the existing structure needs to be modified in order to accomplish the plan for the project.  In terms of pests/water damage, this can range from termite damage to wood or water leakage creating rot.  Whichever it is, both these issues will have increased pressure on your budget as they must be remedied.  The other possible issues with the existing structure are that current beams may be found to not have sufficient strength for the new construction to occur or certain changes are not able to be made to walls because they are either load-bearing or not.  In these situations, while you may have a bit more leeway in terms of a financial solution, the necessary change in plans due to the situation can be just as discouraging.

4. SECURING PERMITS

Permits are required on practically all projects so this will not be a surprising cost. What may be shocking though is the difference the same permits cost in different states, counties, jurisdictions, etc.  It is advisable to reach out to your local department of building prior to applying for a permit to find out the range of costs for the permits that you will need to acquire.

5. MOVING/STORAGE COSTS

Living through a home renovation can be a nightmare.  We always recommend that clients move out of their homes at least during the most dramatic stages of construction.  These costs can be more substantial than anticipated so it is best to make a plan well in advance of needing to vacate your home.  Waiting for the last minute or deciding to move out for a period of time when the original plan was to stay put can cause these costs to be much higher than they would have been.  Even more, trying to secure all your belongings on-site or find a storage space can be a daunting task as construction is underway.

6. RESTAURANT/TAKE OUT FOOD

Possibly slipping your mind due to being preoccupied with the major logistical aspects of your project, the regular occurring day-to-day tasks of your life must not be forgotten.  If your project includes work to your kitchen, or like formally mentioned you move out of your home during construction, the cost of not being able to cook for yourself or your family can quickly add up even if this occurs for a relatively short period of time.  Getting takeout or eating at a restaurant will cost you 3-4 times what it costs to purchase food at a grocery store and prepare it yourself.  Once again costs such as these, which also can include childcare or pet boarding, are extremely important to be diligent about when planning so as to not be beyond your budget when they occur.

7. TIME IS MONEY, ESPECIALLY YOUR TIME

Just like taking time off work to make a doctor’s appointment, an equivalent amount of flexibility will need to be made for your home's renovation/remodel project. You must be able to make the necessary sacrifices from your professional life to meet with your contractor or tend to any other matters that require your decision-making.  These tasks during your project will no doubt cost you in what normally would be allotted time towards bringing in income, which, in itself, turn into an expenditure against your budget.  Understand though, that just like any important life event, a home construction project is deeply personal and requires your utmost attention as it involves the place where you will be spending substantial time with friends and family.

Hopefully, with proper planning and conscious critical thinking, all the former scenarios regarding unexpected costs will be in fact transformed into expected spending.  It is possible that some may occur, while others will not.  The point though, is that at the end of the project, you are happy with the transformation of your home and feel as if the improvement is equivalent to the amount of money you spent.