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Exploring the hidden costs of home renovation

To get the most out of any home improvement project, whether you're adding an extension, remodeling the kitchen, or redecorating, budgeting is an essential skill. Hat shopping and even selection of contractors may be the most exciting stages of a home renovation project, but understanding the hidden costs may decide whether your project is a headache or a dream come true.

Working with contractors is filled with potential complications that could affect your budget. Add-ons and upgrades often seem like an ideal situation at first glance, but can quickly escalate the renovation cost. Finishing materials, such as a superior countertop material or a better type of hardwood for flooring, can also lead to unexpected price increases.

Not every cost, however, is human-made. Old houses, in particular, may throw curveballs such as asbestos, out-of-date wiring, or hidden damage like rot or water leaks. Though these issues often come to light only after work is underway, they must be addressed to meet safety standards, and costs can add up considerably.

For that matter, always plan a contingency budget; home renovations almost universally end up costing more than expected. An analysis of HomeAdvisor data found that the average kitchen remodel cost increased by about $1,800 if done professionally and by about $600 if DIY.

Moreover, not all renovation costs come with price tags. Living in a construction zone can take its toll, driving you to spend more on eating out or temporary lodging. Time is another overlooked expense. Whether it's the weeks spent living in dust or the hours it takes to coordinate with contractors and select materials, the time spent on a home renovation takes up a large chunk of your life.

Finally, the biggest hidden cost might be the impact on your home's value. You might love your gold-plated Jacuzzi or your avant-garde paint job, but if you're over-improving for your neighborhood or making highly individualistic choices, you may not recoup the cost when you sell the house.

Renovating can be an overwhelmingly complicated task, but with a careful evaluation of hidden costs and a touch of resiliency during the process, it can lead to an ultimately rewarding experience.

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