Going Over Budget with Home Improvements

Going Over Budget with Home Improvements

Planning for Home Improvements

We all have good intentions when it comes to budgeting for home improvements; unfortunately, if there’s one thing you can count on during a remodel, it’s that the project will go over budget.  It’s important to know from the very beginning the amount of money you can afford to spend. That’s why a budget is absolutely necessary.

 

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Budgeting For Home Improvements

As hard as you try to stay on budget, there are some common reasons why renovations can slip out of control and most of these reasons start with the same common challenge – change happens!  Knowing in advance what could cause your project cost to increase, can help you stay on track an avoid out-of-control cost increases.

  1. Can’t make up your mind. One of the most common reasons projects go over budget is that homeowners can’t make up their mind. The more you change your mind during the course of the project, the more it’s going to cost. To avoid this happening, do a lot of planning before you begin the project. If you’ve considered all your options, you’ll be surer about what you’ve decided on.
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Select Finishes and Materials Before Projects Begins

 

  1. Labor and Material cost more than expected. For your contractor to accurately predict the project cost, it’s a good idea to select all your finishes and materials before the construction work starts. If you haven’t picked them out, invariably, it will be more money and slowdown the timeline.
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Unexpected Structural Problems
  1. Unexpected structural problems. Making structural changes often leads to unanticipated discoveries such as mold, water damage, faulty wiring or pests. To resolve these problems will incur cost and additional expenses you weren’t planning on.
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Building codes
  1. Local building codes – Towns have building codes and codes change all the time. When contractors are working on a project they may find code violations. When this happens, contractors must make corrections or risk losing their license. This will tack on more unexpected costs.
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Expand Your Renovation Project
  1. Project Looks Amazing – Suddenly your mission has expanded a little bit. The kitchen renovation looks so great, you suddenly decide you want to redo the bathroom, but the bathroom was not in the budget.

Not being prepared for change is the single biggest reason why remodeling projects go over-budget. There are things you can do to minimize the chances of that happening; you can just add another 10 or 15% to your budget with the expectation that you’ll need it and minimize changing your mind by considering all the options before the project begins.