Hidden Costs of Renovations and Remodels: The Most Comprehensive Guide Ever.
August 27, 2024
Jon Christensen
Hidden costs can make or break a project. It's like a game of whack-a-mole - just when you think you've got everything under control, another unexpected expense pops up and throws your budget out of whack.
That's why planning and budgeting for these hidden costs is so crucial. I've seen it all - from last-minute changes that send costs skyrocketing to surprise structural issues that can put a serious dent in your wallet. There are also the costs of living through a renovation - let's just say that eating out every night and paying for a hotel room adds up fast.
But here's the thing - with a little bit of know-how and some careful planning, you can avoid these hidden costs and keep your renovation project on track. That's where Bidmii comes in - we're here to help you navigate the complex world of home renovations and make sure you're getting the most bang for your buck.
So, let's dive in and take a closer look at some of the most common hidden costs in home renovations. I'll share some of my own experiences and offer some tips and tricks for avoiding these pitfalls.
TL;DR Summary in a Table
Making Changes
Indecision and last-minute changes are budget killers. I've seen homeowners change their minds about tile choices or cabinet styles halfway through a project, and it's not pretty. These changes often require tearing out completed work, ordering new materials, and extending the project timeline. All of this adds up fast. To avoid this, spend more time in the planning phase. Use tools like Pinterest or instagram or better yet, Desingmii design services to solidify your vision before work begins. At Bidmii, we encourage homeowners to be as detailed as possible in their project descriptions to minimize changes down the line.
Every time you alter the project's scope of work, you're looking at a change order. These aren't just minor tweaks - they're formal amendments to your contract that often come with a hefty price tag. On Bidmii, we've addressed this issue head-on. When a change order is necessary, the contractor must fully price the change and add it to the project as an additional stage. The homeowner must then fund that stage to accept the change order. This process ensures full transparency and prevents unexpected costs from creeping in.
Bad Estimates
Initial estimates often fall short because they don't account for all the variables. I've seen contractors lowball estimates to win jobs, only to hit homeowners with additional costs later.
On Bidmii, we've tackled this problem by making bids from contractors binding offers. They must complete the work outlined for the price they bid, which helps weed out unrealistic lowball bids. What's more, over 70% of projects on Bidmii get awarded to the highest-rated contractor, not the lowest bid. When homeowners can see purchase-verified ratings and reviews with complete transparency, they often prioritize quality over price.
Structural Surprises: Pest, Rot & Water…oh my
You'd be amazed at what we find when we start opening up walls. I've seen everything from rotted support beams to outdated wiring that's a fire hazard waiting to happen. These issues can't be ignored and often lead to significant cost increases. In one project, we discovered the previous owner had removed a load-bearing wall without proper support, adding $15,000 to the renovation cost. To minimize surprises, consider a pre-renovation inspection.
Opening up walls can reveal some nasty surprises. I've seen termite damage turn a simple remodel into a major structural overhaul, adding $10,000 or more to the project cost. Water damage and rot are equally insidious - what looks like a small damp spot can hide extensive damage behind the scenes. In one project, we found that a slow leak had rotted out an entire subfloor, tacking on an extra $5,000 to replace it. On Bidmii, we encourage contractors to include contingency funds in their bids for these types of issues, typically around 5-10% of the project cost.
Bringing Your Home Up to Code
Building codes are constantly evolving, and your renovation might trigger mandatory upgrades. I've seen simple kitchen remodels turn into major overhauls because the electrical system didn't meet current standards. These code compliance issues can easily add 10-20% to your budget. Before starting your project, check with your local building department about potential code updates.
Pest and Rot Damage
Opening up walls can reveal some nasty surprises. I've seen termite damage turn a simple remodel into a major structural overhaul, adding $10,000 or more to the project cost. Water damage and rot are equally insidious - what looks like a small damp spot can hide extensive damage behind the scenes. In one project, we found that a slow leak had rotted out an entire subfloor, tacking on an extra $5,000 to replace it. On Bidmii, we encourage contractors to include contingency funds in their bids for these types of issues, typically around 5-10% of the project cost.
Hazardous Materials and Outdated Practices
Old homes often hide a multitude of sins, from asbestos insulation and lead paint to knob-and-tube wiring. Dealing with these issues isn't just costly - it's often legally required. Asbestos removal can add $5,000 to $15,000 to your renovation budget, while mold remediation often runs between $2,000 and $6,000. And here's the kicker - you can't always see these problems until you start tearing things apart. I've had clients discover black mold behind seemingly pristine walls, doubling their renovation timeline and budget.
If your home was built before 1980, consider getting a hazardous material inspection before you start. It might cost a few hundred dollars upfront, but it can save you thousands in the long run.
Temporary Living Expenses
Living through a major renovation can be a nightmare. I've seen families underestimate how disruptive it can be, especially for kitchen or bathroom remodels. Hotels or short-term rentals can cost anywhere from $100 to $300 per night, quickly adding up to thousands over a few weeks. If you're planning a whole-home renovation, budget for at least a month of alternative accommodation.
Increased Utility Bills
Renovations can cause your utility bills to skyrocket. Power tools running all day, extra lighting, and HVAC systems working overtime to combat dust can easily double your normal energy consumption. I've seen monthly electric bills jump by $200-$300 during major renovations. And don't forget about water usage for things like mixing concrete or cleaning up. To mitigate this, ask your contractor about energy-efficient practices and consider upgrading to energy-efficient appliances as part of your renovation.
Eating Out
When your kitchen's out of commission, those restaurant bills add up fast. I've had clients spend an extra $1,000 to $1,500 per month on meals during kitchen renovations. Even if you set up a temporary kitchen, you'll likely eat out more often due to the stress and mess of renovations. Plan for this by budgeting an extra 50% on top of your usual food expenses. Consider meal prep services or buying in bulk to reduce costs. On Bidmii, we encourage homeowners to discuss kitchen renovation timelines in detail with contractors to minimize the impact on daily life.
Pet Boarding and Daycare
Renovations can be stressful for pets. The noise, strangers in the house, and potential safety hazards often mean you need to find alternative arrangements. I've seen pet owners spend $30 to $50 per day on boarding, which can add up to $1,000 or more for a month-long project. Even if you're not boarding full-time, you might need daily pet-sitting services. Some homeowners overlook this cost entirely until they're faced with a anxious pet and an open construction zone. Plan ahead by researching pet-friendly renovation strategies or budgeting for care.
Child Care
Kids and construction zones don't mix. If you usually work from home or have a stay-at-home parent, you might suddenly need to arrange childcare during renovation hours. This can cost anywhere from $100 to $300 per week, depending on your location and needs. Even if you don't need full-time care, you might find yourself paying for more activities out of the house to escape the noise and mess. I've seen families spend an extra $500 to $1,000 per month on childcare and activities during major renovations. Consider planning your renovation during the school year if possible, or look into short-term summer camp options.
Permit Fees:
Don't underestimate the cost of permits. I've seen homeowners get blindsided by these fees, which can range from a couple hundred to several thousand dollars depending on the scope of your project and your location. In some cities, a simple bathroom remodel might require a $500 permit, while a major addition could set you back $5,000 or more. Recently I was speaking with a neighbour on the NextDoor App they shared that the city slapped them with a park development fee ($40k) because they we're building an additional unit in the basement. They're going to fight it, but what a pain to deal with. And it's not just about the cost - failing to get proper permits can lead to fines, work stoppages, or even having to undo completed work. Always factor permit costs into your budget and timeline.
Design Consultation Fees
While it might be tempting to skip professional design help to save money, this can often lead to costly mistakes down the line. A good designer or architect can help you avoid structural issues, maximize your space, and even save money on materials. Their fees typically range from 10% to 20% of your project cost, but the value they bring can be immeasurable. I've seen well-designed projects increase home values far beyond their cost.
Homeowner Association (HOA) Fees
If you live in an HOA-governed community, don't forget to factor in potential fees or assessments. Some HOAs charge review fees for renovation plans, which can range from $250 to $1,000. They might also require you to use specific materials or colors, which can impact your budget. I've even seen cases where HOAs imposed special assessments on all residents to cover community-wide upgrades, adding thousands to individual renovation costs. Always check your HOA bylaws and get necessary approvals before starting your project.
Post-Construction Work
The final touches after a renovation can catch many homeowners off guard. Once the main work is done, you're often left with a list of small but crucial tasks. I've seen clients scramble to repaint adjacent rooms because the new renovation made the old paint look shabby. Landscaping is another common oversight - heavy equipment can tear up your yard, leaving you with unexpected repair costs. These final touches can easily add 5-10% to your overall budget. To avoid surprises, discuss the full scope of post-construction work with your contractor upfront. Bidmii encourages contractors to include these details in their initial bids, ensuring you're not hit with unexpected costs at the end of your project.
And beware the largest post-construction work project of all time: renovating the space next to the newly renovated space, because it now looks outdated. The worst part about a fantastic, newly renovated kitchen, is the dining area that not longer works!
Waste Removal and Disposal
The sheer volume of debris generated by a renovation often shocks homeowners. Dumpster rental and disposal fees can quickly add up, especially for larger projects or those involving hazardous materials. I've seen disposal costs range from $300 for a small bathroom remodel to over $3,000 for a whole-home renovation. Some areas have strict regulations about construction waste disposal, which can further increase costs. Don't forget to factor in the potential need for specialized disposal of materials like asbestos or lead paint.
Lost Time
Delays in renovation projects are more common than you might think, and they can hit your wallet hard. I've seen countless projects run weeks or even months over schedule due to issues like material shortages, weather delays, or unexpected structural problems. These delays don't just test your patience - they can lead to extended living expenses, storage fees, and lost wages if you need to take time off work to oversee the project. To mitigate this risk, always build a buffer into your timeline and budget.
Storage Fees
Many homeowners underestimate how much stuff they'll need to move during a renovation. Even a single-room remodel often requires clearing out adjacent spaces. Storage unit costs can range from $50 to $300 per month, depending on size and location. For larger renovations, you might need portable storage containers, which can cost $150 to $300 per month, plus delivery and pickup fees. These costs can add up quickly if your project experiences delays. We recommend decluttering before your renovation starts to minimize storage needs and costs.
Utility Upgrades
Renovations often reveal the need for utility upgrades that weren't part of the original plan. I've seen simple kitchen remodels turn into major electrical overhauls when outdated wiring is discovered. Plumbing upgrades are another common surprise, especially in older homes. These unexpected upgrades can easily add $1,000 to $5,000 or more to your budget. To avoid surprises, consider having your home's systems inspected before starting a major renovation.
Summary
A successful renovation isn't just about the end result - it's about the journey to get there. Plan thoroughly, budget generously, and always expect the unexpected. Don't be afraid to ask questions, get multiple opinions, and really dig into the details before you start swinging hammers.
At Bidmii, we're all about making this process smoother and more transparent. We've built a platform that connects homeowners with community-vetted contractors, encourages clear communication, and helps manage many of these hidden costs. But whether you use our platform or not, the key is to go into your renovation with your eyes wide open.
Renovating your home can be one of the most rewarding experiences - when it's done right. So take the time to plan, budget for these hidden costs, and surround yourself with professionals you trust. Your future self (and your beautifully renovated home) will thank you.
About the Author:
As a passionate home renovator, I've had the privilege of bringing multiple century homes up to snuff alongside my wife. Before we started our family, we poured our hearts into restoring these timeless treasures, each with its own unique history and character.
Through countless hours of hands-on work and countless lessons learned, we developed a deep appreciation for the challenges and rewards of the renovation process. From navigating unexpected surprises behind the walls to sourcing period-appropriate materials, each project was a labor of love that taught us the importance of patience, flexibility, and creative problem-solving.
It was during one of these renovations that Bidmii first took root. As we struggled to find reliable contractors and stay on budget, we realized there had to be a better way. We envisioned a platform that would simplify the renovation process, connect homeowners with trusted professionals, and provide the tools and resources needed for a successful project.
Today, Bidmii is the culmination of our years of experience in the world of home renovation. By combining cutting-edge technology with a deep understanding of the unique challenges faced by homeowners, we've created a platform that is transforming the way people approach their renovation projects.
Through my work with Bidmii and my own personal renovation experiences, I've developed a wealth of knowledge and insights that I'm passionate about sharing with others. Whether you're tackling a century home restoration or a modern remodel, I believe that with the right tools, team, and mindset, anyone can achieve the home of their dreams.
So if you're embarking on your own renovation journey, know that you're not alone. With the tips and advice in this article and the support of the Bidmii community, you've got everything you need to navigate the world of temporary housing and come out the other side with a beautifully renovated home.
