Oftentimes, renovating an older home comes with surprises beyond the control of contractors and home owners. There are times that hidden expenses lurk beyond old walls.
When it comes to forecasting costs, new constructions are much more controllable.
Bear in mind that the process of renovating and improving your Edmonton home should be planned with a budget that is less than you can really afford. Your contractors would have contingency plans as well to cover the mistakes that they “may” have committed.
Yes! Nobody is truly perfect so you can be sure that your chosen constructors would run into problems they might not have foreseen.
That best way to actually get a grip of the actual cost of renovation or home improvement is to get bids from three local firms. Getting the figures from other people is a good plan to get a gauge of how you would have to spend.
Once you get a good picture of the cost, it is to your best interest to provide a buffer of at least 20% additional budget to cover any other surprises.
As a homeowner, you could also use the approach taken by commercial constructions, this is by asking the constructors to bid on a guaranteed max with a shared savings contract. Your builder will provide you with all the construction expenses, overhead costs and gains. Once the project is done, both of you will share in the savings. It is a great way to incentivize contractors to do their work more cost effectively.
It is highly important that you and your chosen contractors have a transparent working relationship. Both of you needs to be on the same page as to who is in charge to decide when to proceed when new costs arises.
Good communication together with your contingency plan in the finances of the project would be your best bet to having a successful home improvement or renovation.
Visit our Edmonton MLS listings for a great list of new homes for sale in Edmonton and nearby areas.
