There are plenty of mistakes that you want to avoid in a home remodel. You don’t want to hire the wrong contractor. You don’t want to forget about permits and then pay the price when your home insurance doesn’t offer coverage later down the line. But the biggest mistake that you absolutely don’t want to make during your remodel is setting an unrealistic budget.
Setting an Unrealistic Budget
It’s going to cost more money and take more time to get through your home remodel than you expect. This is a universal truth. The chances that you will end this endeavor under budget and ahead of schedule are incredibly slim.
Set a realistic budget for yourself. How do you do this? Do your research. Look up the average costs for projects that you want to complete. Contact professionals for quotes. Check the price of materials that you want to use. Tally these numbers up. It can give you a good estimate of the costs for labor and supplies.
Then, you will want to pad out your budget to account for additional costs. A 10-20% cushion is ideal. This should protect you from accidentally going overboard.
Anticipating the Unexpected
Why should you have a cushion? It can prepare your budget for the unexpected — code violations, mold, water damage, construction mistakes and much more. You can move on from these problems quickly when you’re ready for them.
What can you do if your cushion runs out? You have a couple of options. If something goes wrong, and you still don’t have enough in your budget, you could apply for a personal loan to help you resolve the small emergency. Make sure to look for loans accessible to your area. For instance, you should look for Missouri personal loans if you live in St. Louis or Kansas City. You don’t want to apply for a loan that isn’t available in your state. That will be a waste of your precious time and energy.
Another thing that you can do is cancel some remodeling projects that aren’t in motion. You can use the funds saved for those projects to handle the emergency. This won’t be an option if you have no projects left to tackle.
Other Costs to Think About
So, you’ve considered the costs for labor, materials and emergencies. What else is there? A lot. Here are some of the other costs that will crop up during a home remodel:
Are you going to live through the remodeling projects, or are you going to stay somewhere else? If you can’t live with the mess and noise, then you have to factor that into your budget. Are you booking a hotel room? Are you renting an apartment? This could double your normal housing costs!
If you’re remodeling your kitchen, you likely won’t have anywhere to cook a full meal. Unless you don’t mind cooking with a hot plate or microwave for weeks on end, you’re likely going to order out more than usual. That’s going to cost you.
You have to think about how this renovation will affect your pets, especially if you’re planning on living on-site. You might want to consider pet daycare to keep them out of the way while contractors are working.
These are some other hidden costs that can balloon your budget:
- Childcare (babysitting, daycare, etc.)
- Junk disposal
- Higher utility bills
A home remodel will already be stressful without adding financial problems into the mix. By avoiding a major budgeting mistake, you can make the whole experience a lot smoother.
Article Submitted By Community Writer