How to Avoid Unexpected Costs During Your Renovation

How to Avoid Unexpected Costs During Your Renovation

Unexpected twists in home remodels drive ratings for HGTV, but when it comes to your renovation, all you see are soaring price tags and endless delays.

According to the 2017 Houzz and Home Report, 36% of homeowners cited staying on budget as their number one challenge. And with 52% planning renovations for this upcoming year, no one wants the extra headache of a sudden burst pipe or a termite problem.

While we can’t promise to keep the renovation monsters away, we can help you prepare for them. After all the work that went into making the perfect Pinterest board, you shouldn’t have to sacrifice on anything in your dream space to pay for an unexpected problem.

So, here’s the big secret to expecting the unexpected:

Don’t forget to add a cushion of 10-25% on top of your budget.

There’s a few factors that can help you discover the exact percent to set aside.

1. Consider age of your home. If your house hasn’t gotten a facelift in a while, hidden problems may be lurking for you during your remodel – especially possible plumbing or electrical updates. You may also want some changes (like adding an extra outlet or two) to bring your house into the modern day. So, set aside a bit more if you think your old home could use some TLC.

2. Pay for an inspection. Some contractors offer free inspections, but these usually lack a thorough look for hidden damages. Paying just a bit more for a commissioned inspection will uncover problems before your renovation starts. Adding cushion to your budget is easy if you have a better idea of what to expect.

3. Think through scope of your project. Updating fixtures or adding a new floor will (hopefully!) not cause you to encounter anything drastic. In that case, a lower contingency budget should carry you through. But, if your project involves demolition, electrical, plumbing, or the like, stay on the safe side with a higher built-in buffer.

While it may take some time to nail down your budget, there are upsides to planning ahead!

You’ll feel more confident about your remodel, and less worried about how it could break the bank. Plus, you can put those leftover funds from your contingency budget to good use by treating yourself to that new chandelier or sofa you’ve had your eye on – the perfect touch to mark the end of your successful home remodel.

Before diving into your budget and preparing for unexpected costs, you’ll want to figure out how much you can afford. Compare personal loan rates on Hearth’s secure application to get estimates of how much you’d be able to get. The process is free, doesn’t affect your credit score, and you have no obligation to get a loan.