A home renovation is nothing like what you see on television. It is not stable and consistent. There are lots of bumps and hurdles on the way that you must deal with. Sometimes, setbacks take place, or prices go up, exceeding your initial budget. These unexpected costs can be heavy on your pocket and may be the cause of stress and anxiety. So, how can you manage unexpected costs during a home renovation?
1. Set the Rules and Stick to them
Before you start renovating your home, you must make a budget. While making a budget is the easy part, sticking to it can be frustrating. However, you need to make sure that everyone on your team, including your contractor, is aware that there is zero wiggle space.
It is important to set boundaries and control expectations so that everyone is on the same page and ensures that there are no unexpected costs during the home renovation. Moreover, getting recommendations from local real estate agents and neighbours does not hurt. Look for people who have had a first-hand experience with home renovations and ask them what they would have done differently.
2. Have a Cushion
One of the reasons why there are unexpected costs is that clients do not have a cushion to plan for unexpected costs, or they end up changing their minds during the home renovation. Because of this, contractors are forced to move things around, and money gets wasted in the process. To be safe, always expect to have some unexpected costs. Keep a 10 per cent cushion to your budget so that even if you go a little overboard, you are not taken by surprise. When forming a budget, be as specific as possible and then add a little extra to the initial costs. Moreover, keep encouraging your contractor to cut costs wherever possible as long as the quality is not being affected.
3. Be as Specific as Possible
Never completely rely on the contractor’s original quote. Home renovations are tricky because they almost always go a bit above budget. This is why it is important that you clearly state the things you want renovated. You must be as specific as possible all the way down to the materials you want used.
Do not let any detail pass. Something as simple as blindly choosing an expensive tile may cost you thousands of extra dollars. You must know exactly what you want so that you can avoid delays in construction as well as unexpected costs. Keep a 20 per cent buffer on your budget in case issues arise during the renovation that needs to be dealt with urgently.