Understanding the Different Variables of Home Remodeling Estimates

Understanding the Different Variables of Home Remodeling Estimates

This article explains the process of how to calculate how much your home remodeling is going to cost you before you start the work.

After you’ve made your plans for your new home that you’ve laid out complete with tennis court, swimming pool, gym and many rooms, it’s time to figure out what this financial nightmare is going to cost you. This procedure is critical if you’re going to apply for the necessary funds to get your home into the ground.

Believe it or not, you are going to need between five and thirty sets of plans and home remodeling estimates that will be used for bidding, approvals, financing and construction. You should include an all- inclusive set of specifications to each set. Each plan should be given a specific date and number in order to avoid any confusion in identifying the recent ones.

Estimating the home improvement costs consists of many variables. In fact, it includes so many variables and unknowns that it is not an exact science. It is quite common to under or overestimate the cost of the home by several thousand dollars as this process is so difficult. This is why a contractor must visualize a three dimensional home from a two dimensional blueprint. The whole process is broken down into four categories.

Fixed Costs: Fixed costs entail factors like land, building fees and the fees paid for the services of the architect.

Estimates: These costs include the contractor’s home remodeling estimates for items such as carpentry, concrete, lumber, site excavation and trash removal. These estimates are based solely on the contractor’s experience with how much material will be needed to finish the job.

Bids: These costs are associated with bids from the contractors, subcontractors and suppliers for parts of the project based on the plans and the specifications you have written. These costs will only vary if the actual construction varies from the original plans. This can consist of bids for things such as plumbing, roofing, and the forming of the foundation of the home.

Allowances: This embraces costs for items such as flooring, cabinets, light fixtures and landscaping. The contractor will offer the buyer a cost breakdown of these items, and then from that breakdown the buyer will determine which of these items he can do without and which ones he must have. The buyer also has the choice of purchasing the items that may be of lesser quality to reduce the cost.

In short, estimating costs for a new home is not easy and rarely comes in at the number assumed. Homeowners need to be aware of this or the final price tag may come as a big shock to them.