The Hidden Costs of Home Repairs and How to Avoid Them

Thinking about remodeling your home? You're not alone. According to Harvard's Joint Center for Housing Studies, homeowner spending on improvements has surged into double digits since the pandemic, hitting $430 billion by 2022. No matter the project, remember that costs go beyond materials and contractors. Home remodeling often comes with hidden expenses. As you plan your dream kitchen or new home office, make sure to budget for these six commonly overlooked costs.

How to Avoid Hidden Costs of Home Repairs?

1. Costs of Permits

Many remodeling projects require a work permit from local authorities before starting. Permit costs typically range from $424 to $2,291, with the national average being $1,330. The exact cost depends on your municipality and the scope of your project.

Most renovations need permits, especially if you're updating electrical or plumbing systems. In big cities, permits can cost up to $7,500, while in small towns, they may be as low as $100.

Skipping this step—or allowing your contractor to skip it—could lead to additional costs, fines, work stoppages, and potentially invalidating your insurance coverage. Generally, contractors are responsible for obtaining these permits.

2. Late Changes

To avoid increasing your renovation costs, try to avoid last-minute changes to your plans. Even minor adjustments, like switching flooring materials, can drive up the total cost significantly. Proper planning and sticking to your original plans can prevent this issue.

However, some changes might be unavoidable. For example, materials could be out of stock, or what you ordered may not fit your design. In these cases, you might have to pay more for alternative materials.

To minimize these risks, maintain open communication with your contractor and check the quality and availability of materials early in the process. To reduce the cost of repairs, it is much wiser to make a high-quality plan in advance and think through everything to the smallest detail. Design planning apps for your iPhone will help with this. Just keep in mind that they are demanding and can lag on the smartphone. In this case, remove cookies, clear memory, and update iOS. When cookies on the iPhone accumulate, they begin to negatively affect performance. But when you delete cookies, you can improve the responsiveness of the device.

3. Pest and Rot Damage

Unforeseen costs can arise where pests like termites thrive. In the South, termite damage can quickly increase your remodeling expenses. Rotting wood is another issue that can derail your renovation plans. To avoid this, keep plants and irrigation systems at least five feet from your home's foundation. "Any water damage found in the structure of any home is huge for hidden costs," says Mozen. Be proactive in inspecting for pests and water damage to manage costs effectively.

4. Extra Costs for Living Away from Home

Planning a home renovation? Don't forget to budget for temporary lodging and dining costs. Smaller projects might not disrupt your life, but larger renovations could require you to stay elsewhere. A few nights at a hotel can add up quickly, and long-term rentals are even pricier.

If you stay home during the renovation, expect to eat out more often, especially if your kitchen is affected. Of course, you can cut costs a little if you use a VPN extension when booking. This way you can change your location and are more likely to book a hotel or apartment for less. These extra expenses can add up, so include food and lodging in your budget if you lack alternative options like staying with friends or family.

5. Cleaning Up

Construction leaves a lot of dust and debris, so you’ll want a thorough job. This includes removing scuff marks from walls, waxing floors, and scrubbing windows.

To avoid surprises, ask your contractor for a fixed price or estimate for demolition and debris removal. You can request an adjustment later if the actual costs are lower.

Consider hiring professionals to clean the area after work is completed. They can sweep, vacuum, wash, and polish your home, making it "broom clean" and fully habitable. According to Hicks, professional housekeeping services can do the job more quickly and thoroughly than you can, typically costing between $275 and $650.

6. Varying Fee

If you've never renovated your home, you might not have worked with a contractor before. It's crucial to know that not all contractors have the same pricing structures, making it tricky to estimate your total bill.

For instance, some contractors don't include the cost of hauling demolition debris or cleaning up after the project in their quotes. This isn't unusual, so always check with your contractor about these fees to avoid unexpected charges.

Avoiding Costly Pitfalls in Home Renovations

When renovating your home, be mindful of potential financial pitfalls. Establish a clear plan with your contractor and discuss how to handle various contingencies. This careful planning can help you avoid unexpected costs and save thousands of dollars. Remember, transparency and thorough preparation are key to a successful renovation project.