8 Remodeling Costs That Might Surprise You
Plan for these potential budget busters to keep a remodeling tab from escalating out of control
Houzz Contributor. Fresh out of journalism school, I fell into decorating media and immediately discovered a new passion. An Atlanta native, I spent several years as an editor for Atlanta Homes & Lifestyles magazine before making the leap to national publications and websites such as Houzz, Better Homes and Gardens and Southern Accents. I live in Birmingham, Alabama, with my husband and son, who’ve gotten used to coming home and finding the furniture rearranged. When I'm not dragging case goods across the floor, I enjoy good food and wine, college football, music of all kinds, and traveling.
Houzz Contributor. Fresh out of journalism school, I fell into decorating... More »
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.
Here's just a sampling of the surprises you might encounter. What costs have caught you off guard? Let us know in the Comments section below.
Here's just a sampling of the surprises you might encounter. What costs have caught you off guard? Let us know in the Comments section below.
Higher property taxes. Major additions or updates, particularly in spaces such as kitchens and baths, can increase your home's assessed value, and that can enlarge your tax bill. Assessors typically get copies of building permit applications, so they'll know about your project and may determine that it warrants upgrading your home's value.
Hidden horrors. If demolition reveals a colony of creepy crawlies lurking beneath your drywall, you'll have to call in the pest control folks to evict them before work can proceed. Insects and vermin are just one unpleasant surprise you might discover — you never truly know what's going on behind the walls until a tear-out. Prepare for the possibility of mold, faulty wiring or plumbing, asbestos and other pricey pitfalls.
Hidden horrors. If demolition reveals a colony of creepy crawlies lurking beneath your drywall, you'll have to call in the pest control folks to evict them before work can proceed. Insects and vermin are just one unpleasant surprise you might discover — you never truly know what's going on behind the walls until a tear-out. Prepare for the possibility of mold, faulty wiring or plumbing, asbestos and other pricey pitfalls.
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| Offsite storage. You'll need to stash your stuff somewhere while work is in progress. If you don't have an attic, a basement or a willing friend with a large spare room, you may need to rent an offsite storage unit for the duration. Depending on size and other factors, these units can cost anywhere from $20 to a few hundred bucks a month. Building code quirks. Codes vary depending on where you live, but you may well face a list of requirements that must be satisfied in order for your permit to go through, particularly in an older home. For example, in obtaining estimates for a planned bathroom remodel, my husband and I learned that we'd need several new smoke detectors hardwired into the main electrical system, to the tune of several hundred dollars. Utility bills. Whose electricity powers all those table saws, nail guns, paint sprayers and floor sanders? That's right — yours. In addition, heavy traffic in and out of the house could pad your heating and cooling bills, especially in hot or cold weather. |
by Studio Zerbey
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Eating out. Does your project include a kitchen remodel? You won't be whipping up meals at your brand-new stove for a while, and you can spend a small fortune on restaurant meals and takeout in the meantime. Even prepared or microwaveable foods at the supermarket cost significantly more than cooking from scratch.
8 Steps to Surviving a Kitchen Remodel
Pet boarding. Got a hyperactive border collie or a cat who's freaked out by strange noises? You may wish to send him or her to a kennel during the most intensive phase of construction, especially if you don't have a fenced yard or other space where he or she can safely stay out of the way. Prepare to pay anywhere from $12 to $100 per day for the privilege.
Dumpsters and portable toilets. Don't be shocked to see these items in your contractor's estimate. They help the crew maintain a clean job site and cause as little disruption to your home as possible.
More:
8 Ways to Stick to Your Budget
Decorate With Intention: 12 Remodeling Sanity Savers
Kitchen Remodel Costs: 3 Budgets, 3 Kitchens
8 Steps to Surviving a Kitchen Remodel
Pet boarding. Got a hyperactive border collie or a cat who's freaked out by strange noises? You may wish to send him or her to a kennel during the most intensive phase of construction, especially if you don't have a fenced yard or other space where he or she can safely stay out of the way. Prepare to pay anywhere from $12 to $100 per day for the privilege.
Dumpsters and portable toilets. Don't be shocked to see these items in your contractor's estimate. They help the crew maintain a clean job site and cause as little disruption to your home as possible.
More:
8 Ways to Stick to Your Budget
Decorate With Intention: 12 Remodeling Sanity Savers
Kitchen Remodel Costs: 3 Budgets, 3 Kitchens
Ideabook updated on July 9, 2012.
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I am going to add --- Do your homework as not everything is worth recycling. ie: If putting in a new hardwood floor, sometimes it is just easier and cost effective to replace your old baseboards then to try and recycle and/or match-up what you have. Weigh your options!
Items like appliances are often delivered to the end of the driveway, and have to be moved around and stored until installation. If you tell the contractor that you are buying new appliances, discuss this before getting a bid so there are no hard feelings when the contractor thinks he is finished his work but you don't have a final project. That also applies to hardware upgrades, cabinet organizers, towel bars, curtain rods, hanging pictures, moving area rugs and such other tasks. Individually it doesn't take long to hang a picture, but if you have a number of such tasks, your contractor doesn't want to donate half a day to such "honey do" projects to collect his final payment, especially if he hadn't included that time in his original bid.
As the project goes along, additional tasks will be found that will add to the costs, and some things will be done to the most basic level only... anything more wasn't included in the quote. Then, if you want it finished, pay up.
In my reno: a "finished closet" did not include a floor!! They left it as raw plywood!! Stairs to the basement with no railing, and other nice surprises.
Next time I will make the quote include every possible detail.
When we opened up the bathroom drywall we found termites had eaten through the studs so bad in that section of the house that all the 2 x 4's had to be replaced and the corner of the house was sagging so it had to be jacked up.
When we tore the counters off the cabinets to put on new countertops they collapsed like match sticks. Of course if we were replacing the cabinets now we needed to replace the older appliances, flooring etc. for a complete remodel.
Inside the walls we found left overs from a house that had sat vacant before we bought it - Dead rodents and bees. According to the neighbors bees had taken up residency in the house we have found thousands of them in the walls, insulation, stove pipe, behind the cabinets. Everywhere. So we are removing most of the drywall and insulation in the house to clean it out.
I could go on and on but you get the point from my new money pit! PS husband was doing the remodel himself as a former contractor but we have now had to hire workers to come in to help haul off cement, drywall, pipes, cabinets etc. Labor and dump fees are now adding to mix.
With remodeling there will always be the unexpected. It's not our fault, we didn't build the original home. It's not your fault, you couldn't have known what was hidden when you bought your home. Some things can be anticipated, but some can not.
The number one thing we see that costs homeowners extra unexpected funds during a remodel is discovering what was done improperly by the previous owner(s). Hidden junction boxes and code violations are huge where unlicensed remodels are prevelent. It is a shame, but it is the reality. The person before you may have gone on the cheap and their penny-pinching could cost you hundreds or thousands.
The best thing a homeowner can do is select their professional (designer, contractor, etc) by verifying credentials and references and build a strong relationship.
You don't meet with three attorneys, presenting your legal issue and request three separate line item bids. You want them to handle your case and do it right for you. Some attorneys charge $150/hr and some $250/hr. Your selection should be based on the big picture, not a line item. Reality is that the $250/hr attorney just might handle your case in 4 hours instead of the $150/hr attorney taking 8 hours to do the same job, and the more expensive attorney just might make the process much less stressful too.
Have you heard of a 4 month remodel taking 6 months or 8 months? Sometimes lack of experience is the cause. It may look like less money upfront (line itmes), but when you are still writing checks 2 months past completion date, it may be you are paying much more than the higher priced professional you didn't select.
There are good contractors and bad, no doubt.
The best advice is to select your contractor because you get along well with them, they listen to your needs, take notes, communicate well, have an excellent success rate and a long list of happy clients. You want to be one of their happy clients as much as they want to make you a happy client.
The following photos show just a few of the number of unexpected code violations and issues we recently discovered in just one condo renovation. It's not our fault, we're just the messenger (and the fixer).
There was a comment above about discovering plumbing leaks below the slab. While most homeowners policies don't cover plumbing repairs, many do cover the cost of accessing the source of the leak and the associated reconstruction. This means that if you have to demolish your tile floor, jackhammer the slab, and excavate below the home in order to access the leak, your insurance may pay for everything (including the reconstruction) except the plumber's labor and materials for the pipe itself (which is a small fraction of the total cost of the repair).
Similarly, most policies exclude long term deterioration, such as the damage to the chimney shown in the photo above. However, some policies have endorsements or provisions that provide coverage if the damage was in a hidden area (i.e. inside a wall) and others place little or no requirements on duration.
The key is knowing and understanding your policy. If you call your insurance about damage, they'll let you file a claim even if they doubt there's coverage (and the person taking your call likely doesn't have access to your policy or understand it and will tell you that you'll need to file a claim and then your adjuster can review the policy with you). They have an obligation to inspect the property and confirm that the damage is caused by something that is excluded before they tell you it isn't covered.
Know your deductible and if necessary ask your contractor for an estimate for the additional repairs to decide if it's worth filing a claim. Insurance is intended to cover repairs for damage that is sudden, unexpected, and for which you would otherwise not have the available resources to pay for yourself. If you're knee-deep in a renovation and suddenly find hidden damage that will add thousands to the bottom line, that may be the emergency situation you had insurance for in the first place.
I think it's wise to know what aspects really matter to you - if you can't recall the baseboards in anyone else's home, then maybe it's not worth the $700. Maybe you're better off putting that toward hardwood stair treads because you always notice when carpet is worn on stairs (my pet peeves are windows with the grilles between the glass and cheap doorknobs).
Realize that you don't need to have it all to love the results. And when in doubt, factor in the cost to change it at a later time. Windows are expensive to change, doorknobs are not.
Upgrades......so hard to resist. I hate the "B" word! (Budget)
There is no way to know in advance if you are going to find the hidden nightmares, but a good designer/architect/contractor (and you should involve all three right from the start of your project, and have them working together) ought to know between them about these kinds of major code triggers in your area, and/or find them out early in the process and let you know up front, well before demolition begins. If you can change the remodeling plans while they are still on paper to avoid these kinds of things, that's a lot easier to do - and likewise, you'll have the cost of them already built in to your plan if you do want to move forward anyways. Not all changes can be known up front like this, but some rather large ones certainly can.
While you definitely should be sure to budget extra time and money for the hidden issues, the best way to control costs on a remodel is to specify *everything*, in complete detail, down to the hardware to be used (including door hinges and doorstops) and edges on your countertops, *before* you solicit bids - and then don't make midstream changes once you get started.
Because of the degree of detail that goes into a remodel, many contractors are now charging for giving an estimate, because putting together a complete estimate takes a great deal of time and expertise. Go with this instead of the freebie, because it will be a much more accurate estimate - which in turn will save you money and time.
A really reputable contractor will not be be out to deliberately leave things out to catch you out on down the road, because he will take pride in doing his jobs on time and on budget, and will work hard to be sure that everything foreseeable is included up front.
Also, be sure you hire the right contractor for your size job. A firm that specializes in multimillion dollar remodels of homes that are tens of thousands of square feet may have far different project management systems in place than guys who do smaller projects most of the time. Even if the big guy will take your much smaller job, you will likely end up paying for many layers of supervision that are simply not necessary on your project. Likewise, the little firm may not be able to muster the resources to stay on top of a much larger project than they usually work on.
When you do make changes once the job has started, be sure that none of them are done without signed change orders - and keep careful track of them, because those small $400 or even $150 changes can add up to big money really fast.