TORONTO HOME ADDITION

Home Additions: Additional Costs To Be Aware Of  

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Nobody likes to be given a quote for the cost of something only to find out later that the actual price is quite a bit higher than originally thought. This scenario is common in various situations, from auto repairs to maintenance contracts, and it’s usually no different when it comes to the cost of a home addition in Toronto.

When planning a home addition, it’s easy to get excited about the extra space and enhanced functionality your home will soon offer. However, amidst the excitement, it’s crucial to have a clear understanding of the potential hidden costs that might arise during the project. Unfortunately, it’s not uncommon for homeowners to be faced with unexpected expenses that can significantly inflate the initial quote provided by a contractor.

Understanding these potential costs ahead of time can save you from unpleasant surprises and help you budget more accurately for your project. Below are some of the key additional costs you should be aware of when planning a home addition.

The Reality Behind Initial Quotes

The initial quote provided by a contractor is typically based on visible factors and assumptions about what lies beneath the surface of your home. However, until the walls are opened and the floors are lifted, it’s impossible to know for certain what conditions will be encountered. Hidden issues such as outdated wiring, structural weaknesses, or pest damage can all lead to additional costs once the project is underway.

Pro Tip: When receiving a quote, ask your contractor about potential risks and how they might impact the overall cost. A reputable contractor should discuss these possibilities upfront and provide an estimated range for any unforeseen expenses.

Design and Architectural Fees

While the construction costs are often the primary focus, the design phase is just as crucial and comes with its own set of expenses. Engaging an architect to create a custom design for your home addition can be a significant cost factor. These fees can vary widely depending on the complexity of the project and the architect’s reputation.

At Novacon Construction, we operate as a design-build company, which means that our services include not only the construction but also the architectural design and planning. This integrated approach can help streamline the process and potentially reduce costs by having all aspects of the project handled by a single team.

Financing and Loan Processing Fees

If you’re financing your home addition, it’s important to account for the additional costs associated with loans. This includes interest fees, which can add up significantly over time, as well as processing fees that lenders often charge. Furthermore, lenders may require an appraisal and inspection of your home as part of the loan approval process, which introduces additional costs.

Tip: Shop around for financing options and consider the long-term implications of loan terms, not just the immediate interest rates. Some lenders may offer deals with lower fees or even interest-free periods, which could save you money in the long run.

Permits and Regulatory Costs

Almost all home addition projects will require various permits before construction can commence. These permits are necessary to ensure that the work complies with local building codes and regulations. Depending on the scope of the project, you might need building, plumbing, and electrical permits. Failing to secure the proper permits can lead to fines and delays.

Ensure that your contractor has included the cost of these permits in your quote. At Novacon Construction, we handle all permit applications on your behalf, ensuring that your project stays compliant with local laws and regulations.

Unforeseen Repairs and Structural Adjustments

One of the most common unexpected costs in home additions is the need for repairs to the existing structure. For example, once the walls are opened up, contractors may discover issues such as mold, dry rot, or structural weaknesses that must be addressed before the addition can proceed. These repairs can significantly increase the overall cost of the project.

Recommendation: Before beginning your project, discuss with your contractor what these potential issues might cost to address, should they arise. Having an open conversation about possible risks can help you better prepare for unexpected expenses.

The Impact on Your Insurance Premiums

Once your home addition is complete, the value of your property will likely increase. This increase in value often results in higher home insurance premiums. Your insurance provider will reassess your home’s value and adjust your premiums accordingly. It’s important to factor this into your long-term budget.

Insight: Speak with your insurance agent before beginning the project to get an estimate of how much your premiums may increase. This allows you to plan for these higher costs and avoid surprises after the addition is complete.

Property Tax Increases

Similar to insurance premiums, property taxes are also likely to rise once your home addition is completed and your property is reassessed. The exact increase will depend on the value added by the addition and local tax rates.

Advice: Contact your local tax assessor’s office to understand how your property taxes might change after your home addition. This information can help you anticipate and budget for the increased tax liability.

Landscaping Restoration Costs

Home additions often disrupt the existing landscaping around your property. Construction activities can damage lawns, gardens, trees, and other landscaping features. Once the addition is complete, you may need to invest in restoring or redesigning your outdoor space.

Consideration: Budget for landscaping restoration as part of your overall project costs. Whether you plan to do the work yourself or hire a professional, this is an essential step in ensuring your home looks as good outside as it does inside after the project is finished.

Fluctuating Material Costs

The cost of building materials can fluctuate due to market conditions, and these changes can impact your overall project cost. A fixed-cost contract can protect you from price increases, but it’s important to clarify this with your contractor before work begins.

At Novacon Construction, we strive to provide our clients with fixed-cost contracts whenever possible, offering peace of mind that the price quoted is the price you’ll pay.

Planning for the Unexpected

Home additions can significantly enhance your living space and increase your property’s value, but they also come with the potential for unforeseen costs. By being proactive and discussing all possible scenarios with your contractor, you can better prepare for any additional expenses that may arise.

Be sure to make all of your remodeling-related decisions are planned in advance as the contractor will need to organize the labour and building materials in a timely manner to get the job done on time. Materials will need to be ordered well in advance to make sure they reach the job site on time. If you have questions about your upcoming home addition project, you can contact us here.  Novacon Construction is a Toronto based design-build company that offers an all in one solution for your home renovation project. Contact us today to schedule a free consultation.

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