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Remodeling Costs – The Good, The Bad and The Unexpected

The unexpected generates budget busting surprises for remodeling homeowners. Why?  Because while remodeling homeowners expect HARD costs, costs associated with actual construction like plumbing, framing and trim, most of them overlook SOFT costs.

So, what are soft costs?  Soft costs are the other non-physical costs involved in the completion of your remodeling project which include but are not limited to professional fees such as architectural and engineering fees, permitting, etc.

I know what you are thinking…’Great, how much do I budget for each of these costs?’  When budgeting for soft costs a good rule of thumb is the ‘20% to 29% rule’.  For every $10,000 in hard remodeling costs, budget $2,000 to $2,900 in soft remodeling costs as follows:

Architect/Designer – 10% to 15%

Consultants – 6% to 8%

  • Structural
  • Surveyor
  • Soils
  • Geo-Technical
  • HVAC
  • Energy

Permits/Entitlements– 4% to 6%

  • Planning / Zoning
  • Building & Safety
  • Public Works
  • Other

While every remodeling project does not require all of these items, the wider the scope of work (i.e. the more bells and whistles you want), the more likely you’ll need to consider more of these items.


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