For many homeowners, the ability to customize their property was the main reason they bought a house in the first place. When renting, you can’t do much to make a house really yours, but when you own your place, you can do as many remodeling projects as you want.
The only thing holding most people back from remodeling is the expected cost of a project. And while there are ways to get your remodeling done at a relatively cheap price, there are some hidden expenses you might not have considered.
To help ensure you plan a project that is within your budget, here are 5 hidden remodeling expenses to keep in mind.
Remodeling can be costly, so here are some expenses to think about
Water damage, which inevitably also leads to mold, might be the reason you have decided to do the remodeling in the first place. However, if you did not already know about the water damage, it can derail your entire project.
The problem with water damage and mold is that they compromise the structure of certain parts of your home. Before you are able to do the project you’d originally planned, you will have to repair whatever damage has already been done. This can be an expensive prospect, leaving you without enough money to finish the original project.
Try and determine whether you may have a problem before you get started by hiring a mold detector and checking your water bill for unexpectedly high rates.
Hire a mold detector to check for any water damage
2. Homeowners insurance
Homeowners insurance is the most important admin task to take care of when you purchase a house. After all, it is a more expensive asset than any other you will personally buy. A fire could lead to huge losses – you could end up paying off a house that needs to be rebuilt entirely.
Homeowners insurance will cover the upgrades you make to your property. However, it might come at a price. This is essentially a good thing. A worthwhile remodel will increase the value of your home, which is why your insurance premium goes up. Nonetheless, it is something you need to consider, seeing as it is an added monthly expense that is not going away.
Homeowners insurance is very important
3. Demolition and rubbage removal
Most of your cost will be made up of building materials and labor. However, certain projects cannot begin until parts of the home are demolished to make way for the new additions. Demolition is not quite as expensive as building, in terms of labor. But there are associated expenses.
One such expense is rubbage removal. Your contractors may not be able or willing to take the debris to a landfill. You will need to hire removers to come and collect it for you. They charge for the labor of loading the truck as well as the service of taking it away. If there is a lot of demolition work, they may need to do a number of trips, which can take hours and become costly.
Include demolition and rubbage removal in your budget, or you might find yourself out of pocket.
Rubbage removal can be costly
4. Contractor underestimations
You get two types of contractors. Those that err on the side of abundance and those that try to only source what you absolutely need. There are benefits and downsides to both. The former might end up having you pay for more materials than you need (which may not be returnable). The latter, however, might leave you scrambling to find money for extra materials.
Be aware that contractors might underestimate what they need. It is important to have extra funds available in case this happens.
Carefully choose your contractor
In most cities and towns, you require certain permits if you are going to make significant structural changes to your home. These permits are costly and take time to arrange. You may come across contractors who say they will do the job discreetly so that the authorities never know. However, this is not a wise route to take.
If you do not get the proper permits before doing your remodel, you may face significant struggles if and when you want to sell your home. Even if you are able to get away with selling your home without attracting oversight, potential buyers will understandably be put off by the shortcuts taken and the lack of certification you are supposed to provide.
Remodeling projects can end up costing a lot more than you expect them to. Make sure you leave some of your budget to account for the above expenses. Without that cushion, you may end up unable to finish what you started.
Make sure you have all the permits you need before you start remodeling