Embarking on home renovations, whether personally undertaken or observed through clients, have provided me with a wealth of insights into the challenges and triumphs of the process.
While there are numerous videos and blogs offering guidance on what to do and how to make renovations work, one aspect often overlooked is budgeting. I always advise budgeting realistically, suggesting that for big and small projects, you should add half of the original budget on top. This principle consistently holds true, whether you’re connecting your home to public utilities, gutting the home, working on foundation, or updating the bathroom.
Offsetting Costs
Yet, within this intricate process, there are effective strategies to manage and offset various costs. For example, if you wish to convert to a utility like gas, reaching out to the gas company is essential. Inquire about any available rebates or financing options; sometimes, they offer zero-interest financing, which is beneficial. Nevertheless, even with zero-interest financing, the cost is not entirely free due to unforeseen factors. By ‘unknowns,’ I mean potential hidden issues lurking beneath the surface, not immediately visible during the initial assessment.
Connecting To Public Utilities
Taking the example of switching to gas, you’ll need a permit from the city, and it’s essential to understand who manages that process. Additionally, testing for toxins such as radon and asbestos becomes necessary. In the event that they are detected, you’ll need to hire someone to remediate or remove them, incurring extra costs and time. The chimney is another consideration - does it have the right type of liner, and is it in good condition? If there’s no liner or it needs replacement, it could add both cost and time to your project. Hence, it’s crucial to find ways to contact other entities for assistance and to always overestimate the price. This doesn’t even account for situations where the gas line doesn’t extend all the way to your house. If this extension is necessary, additional permits, labor, and time will be required, further adjusting the project’s cost and timeline.
How to Budget for Home Repairs - Here is an example of steps that I would take if I would connect water utility to my new home that only has well water:
Recognize the Complexity:
Understanding that connecting water utilities is not an easy task sets the tone for realistic budgeting.
Identity Kep Players
Compile a list of all the parties involved, such as a surveyor, engineer, city/town inspectors, contractors, and possibly neighbors.
Request Quotes
Approach each party for quotes. For example, if the surveyor estimates $300.00 for mapping, I add an additional $150.00 to the original quote, setting the new budget to $450. Similarly, if the engineer quotes $20,000.00 for digging and connecting the water utility, I add $10,000.00 bringing the engineer part of the budget to $30,000.00
Dealing with big projects often triggers overwhelming emotions when unforeseen issues arise. These surprises are inevitable, occurring in both small and large jobs. The magnitude of the job usually correlates with the scale of the surprises.
Small Projects
This time, let’s consider a smaller job, like updating a bathroom, for instance. I enlist a general contractor but keep a plumber and electrician in mind in case unexpected issues arise. Gathering three quotes from different contractors is a prudent approach of mine. If a selected contractor quotes $4,000.00, I add $2,000.00 to that figure setting aside $6,000.00 for the job.
Final Thoughts
Implementing this strategy minimizes the emotional strain associated with unforeseen challenges. It ensures better preparedness, allowing you to confront any obstacles with confidence. If you don’t exhaust the allocated funds, consider putting them into an emergency fund for the house. Despite thorough preparations, there may be instances where the project ends up being more expensive than initially anticipated.
By adopting these budgeting practices, you can navigate various home renovations projects more efficiently. I hope these tips assist you in planning for the financial aspect of your home improvement goals. In conclusion, this blog aims not to deter you from embarking on renovations but to equip you with valuable insights for better preparation in your home improvement endeavors.
Share your own renovation experiences or feel free to ask any questions in the comments below. Your insights could benefit others on their home improvement journey!
Comments