Exposing the Five Expenses of Home Improvements

Renovating your house can make it more beautiful, more functional and, in many cases, more valuable.

To maximize that value, you need to understand the costs that will go into those renovations. While materials and labor are well-known pieces of the puzzle, there are other ways that remodeling can affect home finances.

Are you considering updating parts of your property? Be sure to consider the full range of costs.

Permits: Many renovations require permits from your local municipality before you can commence work on them. These generally include anything that changes the structure of your home (even putting in a new front door) and updates to your plumbing, electrical or mechanical systems.
Insurance: Depending on the updates, you might need to increase your home insurance coverage — especially if you’re boosting your property value or adding a pool. On the flip side, changes like installing a security system or improving your home’s energy efficiency could save you money.
Taxes: Your property taxes could increase if you expand your home or add to its value considerably. Your property deductions could be impacted as well, so talk to your tax professional.
Utility Bills: Your utility bills could rise as a result of your renovations, but newer, more efficient appliances or systems might actually lower these costs over time.
Ancillary Costs: Do you have pets that need to be boarded while renovations take place? Will your kitchen be out of commission, increasing your takeout bill? These expenses can add up, so make sure you consider them too.

If you’d prefer to buy a home that meets your needs now rather than renovate, get in touch so we can begin the search.