Costs Homeowners Often Overlook When Budgeting for a Renovation

Renovating your home can be an exciting journey filled with possibilities, but it often comes with unexpected costs that can disrupt your budget. While many homeowners pay attention to major expenses like materials and labour, other costs can accumulate quickly. This post will help you uncover some of the most commonly overlooked expenses associated with home renovations. By being informed, you can prepare better and minimize surprises.

Temporary Storage or Living Arrangements

One of the first costs many homeowners overlook is temporary storage or living arrangements. Depending on the scope of your renovation, you may need to vacate your home for a period of time. This could involve renting a storage unit, or making alternative living arrangements.

In most cases, the homeowner is able to stay on a separate floor in their home while we are working, but this isn't always the case. You will also need to account for a storage locker or pod if we are doing your whole home and you need to move all your stuff out.

A cozy temporary living space during a home renovation

Material Upgrades

Another common trap in renovation budgeting is the temptation to upgrade materials. You may begin with good intentions, planning for standard finishes, but then you visit a showroom. There, you might stumble upon that stunning granite countertop or a chic bathroom fixture that you simply can't resist.

Consider this: if the standard faucet costs $100 but the upgraded one you love is $350, that’s a 250% increase. When these smaller upgrades pile up, they can dramatically inflate your overall renovation costs. Set a clear budget for materials and be firm about sticking to it, but also allow a small buffer for upgrades that could truly enhance your space. Some upgrades are definitely worth it. We always say, do it the way you love the first time!

Add-Ons

Even with the best planning, new ideas often come up during a renovation. This could include a last-minute decision to add built-in shelves or a suggestion from your contractor to improve functionality. Is the juice worth the squeeze??

To help manage this, maintain a running list of potential changes and their estimated costs. For instance, if you want to add a feature wall that costs $1,500, know how that will affect your overall budget. Open communication with your contractor about any changes you’re considering allows you to be proactive rather than reactive, keeping your project on track.

A beautifully designed feature wall in a renovated home

Using a Designer

If you’re thinking about hiring a designer, it’s crucial to include this cost in your budget right from the start. While this may seem like an added expense, a designer’s expertise can help your renovation run smoothly and meet your expectations.

For instance, a designer may charge between $50 to $200 per hour but can save you money by helping you choose materials wisely or avoid mistakes that might cost thousands down the line. Discuss your budget openly with your designer so they can work with you to maximize your renovation potential without breaking the bank.

Final Thoughts

To avoid being caught off guard by unexpected costs during your renovation, plan for the unexpected. A good rule of thumb is to build a buffer into your budget, typically around 10%. This cushion gives you the flexibility needed to handle unforeseen expenses without stress.

Working with a knowledgeable contractor who is transparent can simplify the renovation process. At Dirsal Homes, we emphasize clear communication and full transparency because we believe renovations should enhance your home without overwhelming your finances. By being mindful of these often-overlooked costs and planning ahead, you can help ensure your renovation stays on track and within budget.

Remember, a well-planned renovation can not only improve your living space but also increase your home’s value.