There are five home improvement budget busters which take most homeowners by surprise. Sure, you probably know about having a contingency fund of 10 to 15 percent for those unplanned scenarios. And, you’ve seen enough cable television rehab shows to know about big financial costs, like problems with the roof or foundation. But it’s all those little costs which really add up. These are expenses you just don’t stop to consider, that is, until they become reality.
5 Home Improvement Budget Busters
First, you should know about the biggest mistakes which devalue a house, like a bedroom conversion, mediocre renovations, and so on. It’s also good to be in-the-know about which home improvement projects have the best return-on-investment. These include attic insulation, exterior manufactured stone veneer, a new garage door, new steel entry door, and a replacement, upscale garage door.
Think you know down to the penny what your remodeling project will cost? Not so fast. You may be able to recite the price of materials and the budget for labor in your sleep, but you’re bound to get tripped up by odds, ends and extras — known in the trade as soft costs — that you never imagined shelling out for. That’s why it’s always a good idea to budget 20 to 30 percent over your remodeling estimate so that you’re covered no matter what happens. —Houzz.com
You probably also know about huge home improvement budget busters, like changing your mind after the project is already underway. That will cost you big time, as to both money and time to completion. Other really costly remodeling mistakes are relocating plumbing and electrical, and allowing unpermitted work. Surprise structural changes will also raid your wallet. But, there are five home improvement budget busters that can easily sneak up on you:
- Higher utility bills. Expect your utility bills to be more expensive during a renovation. While the cost of powering drill-drivers and compressors and having to use more water isn’t that expensive, these little extras do add up. Moreover, plan on paying more for keeping your house comfortable because people will constantly be going in and out. That means increased heating and cooling costs.
- Boarding pets. Many pet owners have to cope with runaways — dogs and cats who are imps and will dart out any door the very moment it’s opened. Even if your four-legged family member isn’t prone to spontaneous escape, think about how much stress and anxiety all those people and that equipment will cause. So, it adds to your expenses when you have to board your pets in a kennel for peace of mind.
- Eating out. So, you’ve got a plan as to how to deal with life without a dedicated, fully functional kitchen. That’s only in your mind, because the reality of tearing out a kitchen and temporarily relocating it is less than an ideal situation. Make no mistake about it, you will eat out more, and whole lot more than you suppose. It’s simply going to be more practical and convenient.
- Debris management. One of the most commonly overlooked remodeling expenses is debris and material management. What are you going to do with all that waste that’s produced when the walls come down and the cabinets are ripped out-of-place? You’ll need a roll off dumpster or have to pay a junk removal service. Regardless of what solution you choose, it will significantly add to your long list of expenses.
- Storage. Another unplanned expense which sneaks up on homeowners during a renovation is storage costs. After all, your house only has so much space and you don’t want your furniture, decor, and other possessions under a plume of dust and debris. Think about renting a storage unit or have a portable storage container delivered.
If you are considering buying or selling a home in Orlando’s Hunter’s Creek, or another community, contact us for the latest market information. We are local and experienced in all facets of residential real estate, here to help you, when you need it.