When you’re ready to remodel your house, one of the first things to consider is your budget. How much can you afford? Many homeowners make the mistake of pushing their plans to the edge of their budget, thus leaving very little money as a “cushion” in case things might go wrong.
A new study by Consumer Reports says that over 50 percent of home improvement and remodel budgets go over the amount the homeowners expected to pay. The reason is not sloppy workmanship or price gouging from a contractor — the biggest reason is simply not knowing the full extent of what they were getting into.
Here are a few tips to avoid that sticker shock at the end of a remodeling project:
- What the contracts don’t cover. The contractor might do everything you need, and it’s all included in the estimated price — but what about all the debris left over? Is a disposal fee included? This can cost much more than you think, so be sure to figure that into the budget.
- Serious problems discovered after the work begins. If you’re getting a new roof, wonderful! But what happens when those old shingles are pulled away and your contractor finds a serious problem with leaks and dry rot? That means repairs you might not have accounted for. That’s why it’s so important to plan extra money into your budget for the little surprises.
- What those supplies cost now. Many homeowners will get an estimate, and then sit on it for a few weeks or months while they go over all the details again. But during that time, the prices of supplies are constantly fluctuating. If your contractor guarantees his estimate for a certain period of time, such as 90 days, then you have until that point to take advantage of the price given. Longer than that, and you might have to deal with prices that have skyrocketed.
- All the legalities. When you are remodeling or building something onto your home, you might need permission from a homeowner’s association, city, or town in order to make it happen. Permits, legal arrangements, surveying, and the like can cost a pretty penny, and many homeowners won’t think about that until it’s time to start the project. Do your research! Know what you have to do before that first contractor shows up to give you the estimate, and you will be able to figure the legal costs into your overall budget.
Home remodeling can be easy to handle — if you do your homework beforehand and make certain to figure in more money than you will need. The goal is to get your remodel done and have money left over when it’s all finished! With some foresight and careful planning, you can make it happen.
