You've set a thoughtful and prudent budget. Maybe you've checked the current and after-remodel market price of your home with a good realtor, and have adjusted your scope of work for maximum return on your investment. You developed a cost estimate that is within you budget. It's all smooth sailing from here to the finish line, right?

I'm afraid not.

The biggest challenge of working on an existing home is that nobody can see through the walls or the floors to see what may be hidden there.

It's entirely possible that you've had a tiny leak in the pipes behind your kitchen sink that has been soaking the wall and floor framing below it for 10 years. Over time, these wet boards have rotted. You've got a very big problem that you can't see: these rotten boards will have to be replaced.

Would this surprise cost blow your budget? Would you know how to negotiate a reasonable cost for the repair? What can you do to minimize the impact of surprises like these?

Start with a really thorough, professional, home inspection and ask for a report that assesses every part of your home, describes its current condition, describes required repairs, and puts a price on each repair.

When the inspector delivers the finished report, walk around the house with him and be sure you understand everything he's pointing out. Did he check the roof, the chimney and the attic crawl space? Did he check the floor framing? Did he check each outlet and every switch? Did he assess the condition of the plumbing system? Don't accept a report that excludes the inspection of areas he can't easily see.

The repairs your home inspector recommends should be folded into your remodeling plan along with all of the other changes you plan to make.

If your inspector suspects a hidden problem—for instance, there may be a slight bounce or dip in a floor, the commode may not be perfectly stable—but you can't see the cause, ask both the inspector and your designer to guess, based on their years of experience, what might be necessary to repair what you think is wrong, include this repair in your scope of work, and get a bid price from your contractor for the work. Even if you haven't guessed the exact extent of the problem, you have established a price for the beginning of your negotiation.

Typically, a homeowner in a 25-year-old home will spend about 20% more than they planned by the time all of the surprises have been addressed. That can turn out to be a lot of money. Have a look at the article on Setting a Budget You Can Stick To for suggestions about setting aside a contingency for these kinds of costs.

There will still be things you can't see, but if you do a careful inspection at the outset you will have kept the number of surprises to a minimum; the contractor will be prepared for nearly everything; you'll have controlled your costs; and the chance of disputes will be held to a minimum.

MORE INFORMATION

You’ll find lots more information about the home remodeling process in Managing a Renovation: Staying in Charge and Out of Trouble, our friendly and comprehensive homeowner’s guide to remodeling project management. Download the table of contents and a sample chapter, or go to the order form to purchase it.

We offer ready-to-use construction forms, including a complete remodeling contract, in our Bookstore, as well. Have a look.

And, you may want to look at our list of More Resources for some great design ideas.

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