What you don't know can hurt your budget
Going over budget is the norm for home renovations.
Trying to save money through DIY can end up costing you.
Small expenses like ordering meals can add up.
Anticipating the unexpected can help you prepare a realistic renovation budget.
You've selected a project, put together a home renovation checklist, and are ready to jump in. Before you get your home remodel underway, be sure to account for unexpected renovation costs. From seemingly small details, such as eating most of your meals out while remodeling your kitchen, to major delays, unplanned costs can derail your budget. Knowing what can throw your budget off course and giving yourself a cushion can help you keep your renovation under control.
Sometimes, you can save a bit of money by doing it yourself or hiring someone who may not have the most experience. Painting a room or replacing an appliance can be simple DIY or handyperson fixes.
But when it comes to major home renovation projects, trying to DIY or going with the lowest-cost, least experienced contractor can hurt you in the end. What may seem like a simple project on the surface can become vastly more complicated once things get underway.
Your best bet? Interview several local remodeling companies before you start your project. Learn about their experience and ask to speak to previous customers. Get estimates from each and compare them to each other. It may be that the lowest-priced estimate cuts a lot of corners or that previous customers report spiraling budget costs.
Be sure to set a realistic budget for your remodel so your wallet doesn't get hit with any financial surprises. A good guideline is to set aside 10% to 20% of your budget for unforeseen expenses.
Depending on the age and condition of your home, there may be plenty of secrets and surprises lurking beneath the floors or behind the walls. We're not just talking about questionable wallpaper choices or shag carpeting, either.
Asbestos can be a concern in older homes, for example. Uncovering it can make what originally seemed to be a simple project vastly more complicated.
Your home's surprises don't have to be as extreme as asbestos to add to your project costs. You may tear down a wall only to find extensive damage caused by mice, termites, or water.
Adding a cushion to cover potential damage can take some of the sting out of a nasty surprise.
When you're planning a home remodel, particularly one that involves redoing your kitchen, consider where you plan to prepare meals and eat. Losing access to your cooking and dining area may mean relying on restaurant or take-out meals, which often cost more than cooking at home.
Depending on the extent of your home renovation, you may need to find a place to crash for a few days. Getting friends or family to put you up is the budget-friendly pick, but if that's not an option, you'll want to factor in the cost of a hotel.
Don't forget your pets. Even if the human members of your family can stay home during the renovation, it may not be suitable for furry or feathered friends. Consider boarding your cats, dogs, birds, or other animal companions and factoring the cost into your budget.
Delays happen to the best of home renovation projects. Often, a delay has a domino effect, potentially throwing the entire project off course and eating into your budget.
While you can't predict or prevent delays, you can budget for them by padding out your remodeling budget.
Home renovation projects require power tools, and those power tools require power. Unless your contractor brings along a generator, you can expect to see your electric bill jump up during the project, and it may jump up quite a bit. The same is true for your water bill.
Ideally, the contractor you hire should include debris removal and clean-up in their estimate. But home renovations tend to be messy, and you may need to spring for a deep clean to get rid of any lingering dust and grime.
The cost of a home renovation depends on its complexity and extent. A large remodeling project may top $71,000, while a smaller project may cost around $15,000. Using a home renovation cost estimator before you begin can give you an idea of what you can expect to pay to revamp your home.
Home renovation insurance covers damages that occur during a renovation project. If your existing homeowners insurance policy doesn't cover renovation work, it's a good idea to buy a renovation insurance policy to protect yourself in case something goes wrong during the remodel. The policy should offer coverage in case your home or a neighboring property is damaged during the project and protection in case anyone is hurt during the renovation.
