Nobody likes to be given a quote for the cost of something only to find out later the actual price is quite a bit higher than originally thought. It happens in all walks of life such as auto repairs and maintenance contracts etc. and it’s usually no different when it comes to home additions.
There are typically hidden or additional costs with any type of remodeling project and it’s a good idea to find out exactly where you may have to shell out more money before it has been completed.
For example, the contractor doesn’t really have any idea what’s under the floors and behind the walls of your home until the work is well underway and you may also find out the home doesn’t live up to new building codes in certain regards. However, if you take these things into consideration when planning the project you can add them to your budget so you won’t be taken completely by surprise. This includes items such as loan interest, financing fees, unforeseen repairs, the fluctuating cost of building materials, increased property taxes, landscaping costs and higher insurance premiums.
When hiring a contractor for a home addition or remodeling project you should always insist on a fixed-cost quote and contract which outlines exactly what is going to be done and how much it will cost. Of course, once the contractor gets started the price may still rise due to unforeseen circumstances such as mold or dry-rot. However, you can ask the contractor beforehand how much more it will cost if rot is found for instance. A good contractor should consider the possibility of something such as rot and mold when giving you a quote. In addition, a fixed-cost contract will cover you if the price of building materials should happen to jump midway through the project.
When budgeting for your home addition, don’t forget to include architectural fees as well as construction costs. If you’re using an architect you’ll find they don’t work for free, but some contractors will include these fees in the quote. Either way, the design will end up costing you something. Novacon Construction is a design-build company, meaning we include all aspects of the project including the design, architecture and related fees.
If you plan on borrowing money to finance the remodeling project you’ll likely be facing processing fees along with the interest fees unless you’re fortunate enough to land an interest-free loan somewhere. In addition, the lender may also insist on an appraisal and inspection which will add to the cost.
In most cases a building permit is going to be required for the addition or remodeling work and you may also need plumbing and/or electrical permits. Be sure to ask the contractor if these have been included in the quote.
Higher Insurance Premiums
Once the home addition or remodeling work has been completed your home will now be worth more than it was before you started. Naturally, your insurance company may want to raise your premiums because of this. The exact cost or percentage of this increase will depend on how much the value of your home has been elevated.
Increased Property Taxes
As well as paying higher insurance premiums the government will also want its share. Again, this is because your home is now worth more due to the work done on it. Your yearly property taxes will go up when the worth of your home has been evaluated.
If you’re planning an addition to the home it will likely affect the landscaping of the property. You may need to get rid of shrubs, turf, trees and flower beds when making room for the addition. Even if you don’t have to remove them you may need to replace them when all the work has been completed due to the wear and tear of daily construction.
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.