Hidden Expenses When Remodeling
Embarking on a long-planned home improvement project can be fun, but it can also be a bit frightening. Cost overruns, extra time to complete the project and unforeseen hassles are all too common, and soon the home improvement you have been dreaming of has become a nightmare.
Cost overruns can be a huge problem, busting your budget and forcing you to cut back in other areas. Developing a budget is a vital first step in any home improvement project, but that budget becomes meaningless if it does not include some frequently overlooked items. Here are some of the hidden expenses every home improvement budget needs to include.
Waste Disposal
Dumping is not free, and you will need a way to dispose of broken boards, old drywall, stained carpet and other unwanted materials. Most municipalities will charge about $50 to park a dumpster on a public street, and some local governments also require an insurance rider to cover potential liability and dumpster-related injuries. If you fail to obtain the necessary permits or pay the required costs, your home improvement project could be over before it even begins.
Cleaning
You will need to clean up after your project is complete, and that cleanup is not free either. An industrial deep cleaning will be in order once the project is complete, and you can expect to spend about $180 for a maid service, plus an extra $195 to have the carpets professionally cleaned. These estimates are courtesy of Home Advisor, a popular website for those planning home improvement projects.
Lighting
Track lighting and recessed lighting options look great, but they come with a hidden cost. When those fancy new light bulbs burn out (and they will), you could be looking at a big bill to replace them, not to mention the hassle of getting to those hidden light fixtures. If you are thinking about upgrading the lighting in your home, sticking to a single type of light bulb is simpler, and less expensive too.
Property Taxes
You can bet the tax man will be watching your home improvement project, and reassessing the value of your property when it is done. Anything you do to increase the value of your home will likely come with a bigger real estate tax bill somewhere down the line. If you have a mortgage, that increase in taxes will be reflected in the amount you pay to the bank. If your home is paid for, you can look forward to that bigger tax bill in the mail.
Appearance
Even if you just bought the perfect home, there will more than likely be something you want to change. After all, this is YOUR HOUSE now, and you will want to customize it to your taste and style. Once you get started, you will be amazed at how fast the money goes, and at how much simple things like new shutters, a paved walkway, stylish flower boxes and upgraded landscaping, can cost.
Add-Ons
No matter how big or small your home, the add-ons can really add up. Things like upgrading the patio or adding a new deck or storage shed can add significant costs to your new home. Even a seemingly simple upgrade, like expanding the master bedroom or upgrading the master bath, can cost thousands of dollars in parts and labor, and the more you do, the higher the price tag will be. To make matters worse, those new upgrades will likely mean a higher real estate tax bill year after year.
Increased Cleaning Time
The more room you have, the longer it will take to clean your home. That means more time spent vacuuming the floors, more time scrubbing the tiles in the bathroom, and more time wiping down the woodwork.
The Cost of Cleaning Supplies
In addition to the time, the cost of the cleaning supplies will increase as you expand and improve your home. You may need to have multiple sets of cleaning supplies, along with several sets of sponges and cleaning cloths. If you choose to hire a professional cleaning person, you can expect to spend $100 or more per visit, which could easily add $1,000 to your annual homeowner costs.
Repairs Following the Renovation
Things rarely go according to plan during an extensive home renovation, and even a small mistake could cost you big time. Did you knock a hole in the wrong wall or accidentally shatter that huge picture window? If so, get ready to pay up. Home improvement can be a risky business, and an expensive one as well. Budgeting for potential damage now can help you avoid unpleasant surprises later.
Permit Fees
You will likely need to get permission to start your home improvement project, and those permits are rarely free. In addition to the standard building permit, certain upgrades, like plumbing or electrical work, may require additional permits and even post-work inspections. Those required permits and inspections can easily add $100 or more to the cost of your home renovation project.
Whether you are adding a room or just remodeling the bathroom, it is important to properly estimate your costs. Taking the often-overlooked costs listed above into consideration can make your pre-work estimate more accurate, and help you avoid overspending down the line.
