The Hidden Costs of Doing Home Improvements
August 18, 2021 | Kirk Callender
Home improvement can be a fun thing for a lot of people. Not only are you making beneficial changes to your house, but they will continue to be useful for the years to come. Change like this is exciting! However, there are several hidden costs you may not be paying attention to that you’ll need to keep in mind going forward.
For starters, you need to get the required government permits when you make any major renovative change to your home. These permits differ from local and state government, but fulfilling them can ensure that you can be trusted with your home. They typically range from $40 to $50 dollars, but may be more depending on the nature of your project.
Some people try to get away with not getting the permit. However, if something bad were to happen during the improvement process, you would be held fully liable and will probably have to pay additional fees. It’s worth it to just pay the fee up front.
A Bigger Property Tax Bill
Another consequence of making your home even better is that you end up paying a higher property tax bill. Because your home’s equity will likely rise, you’ll be paying more for the home’s value as time goes on—at least until you sell your home for even higher value.
This is why you should focus on making changes that will give benefits in the long run. For example, you receive a 100% tax exemption for solar panels. This ensures that the cost to install and buy the panels will eventually pay itself off over time.
Occasionally, you might need some help when you are trying to DIY. Either you don’t know how to complete the job, or you don’t want to bother doing it—preferring to leave it to the experts. Just keep in mind that paying for the service and labor charges might be added to your bill after the fact.
Always be sure that you ask the contractors what they are charging you before they do the job. This can alleviate the uncertainty you have when you are estimating the cost of the overall project. So, what are you waiting for? Ask them!
All in all, these are the best ways to understand hidden costs of your home renovation projects. Save up the money necessary before you commit to anything too big for your budget to handle. It’s the best way to save money and enjoy the changes.
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