Why Renovation Budgets Go Wrong (And How to Stay on Track)

Hidden Costs in Home Renovations – What No One Tells You

When it comes to home renovations, most people start with a budget in mind. But if you’ve ever taken on a project—big or small—you know the final cost almost always creeps beyond what you expected. Why?

Let’s break down the top 5 hidden costs that can sneak up on even the most prepared homeowners or investors.

🔍 1. Change Orders Mid-Project

You thought you wanted a stand-up shower, but halfway through, you change your mind to a tub-shower combo. These kinds of changes mean new materials, more labor, and timeline adjustments—which can add thousands to your bottom line.

Tip: Finalize your plans and materials before demo begins.

🧱 2. Unseen Structural or System Issues

Once walls are opened up, surprises like outdated wiring, hidden mold, or sagging floor joists can appear. In Detroit, for example, we often uncover knob-and-tube wiring or old galvanized plumbing that must be upgraded.

Tip: Always have a 15–20% contingency in your budget.

🧾 3. Permits, Fees & Inspections

Not all cities are the same, but most require permits for major work. These come with fees, and inspections may result in unexpected corrections that you didn’t plan for.

Tip: Work with a licensed contractor who understands your city’s codes and requirements.

💸 4. Material Price Fluctuations

Lumber, drywall, and tile prices can swing fast—especially after storms, supply chain delays, or labor shortages. A price increase mid-project can derail a tightly planned budget.

Tip: Lock in pricing and order materials early when possible.

🧹 5. Cleanup & Waste Removal

Many first-time renovators forget to factor in dumpster fees, extra cleanup labor, or disposal costs for old appliances and construction debris.

Tip: Ask your contractor if cleanup is included—or you might end up footing an extra bill.

✅ Final Thoughts:

Budgeting for a renovation isn’t just about the price tag on materials and labor—it’s about planning for the unknown. At Detroit Home Builders, we educate our clients and apprentices alike to expect the unexpected and plan smart from the start.

Stay tuned for next week’s blog:“What Makes a House Structurally Sound? 5 Things to Look For”

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