Home renovations in Canada continue to boom – nearly half of homeowners are planning or have recently completed upgrades, with average renovation costs soaring to about $40,000 in 2024. But behind the glossy kitchen remodels and sleek bathroom upgrades lurks a common frustration: hidden costs. Surveys show the number one complaint among homeowners is unexpected expenses that push projects far beyond the original budget, leaving many feeling blindsided and financially strained.
Braden Lomanto understands the concerns people have coming into any potential home renovation project. As an owner of Precise Custom Homes, Lomanto said that understanding why hidden costs emerge and what can be done to plan for them is key to developing a trusting relationship between a contractor and a homeowner. From selection changes and permit costs to uncovering structural surprises, establishing an accurate cost estimate depends on multiple factors.
“There are limitations to what we can predict and what we can see,” said Lomanto, whose company operates out of Dundas, Ontario. “There are educated assumptions we make based on the age of the home or known information from previous renovations. Unknowns like mold and asbestos are two common items that are found in older properties. While most people are familiar with moisture issues leading to mold, asbestos can surprise homeowners”
According to Lomanto, most homeowners don’t realize that asbestos was used in construction materials as late as the mid-90s, so it’s not uncommon to find it. It’s important to know where it exists and how to safely remove it to protect families and workers. It can be found in many items such as adhesives, insulation, flooring, piping, siding, and even roofing. Building materials may contain small amounts of asbestos which require safe handling practices or large amounts requiring full containment setups adding larger costs. Another common hidden cost is the condition of the home’s existing services or structural elements behind the walls.
“When we approach any new renovation, whether it’s a single bathroom, multiple floor levels, or full building addition, we can uncover many unforeseeable issues such as degrading foundations, unsafe electrical wiring, and missing structural elements,” said Lomanto. Those are things we don’t know until we open up the home. “Eager homeowners may request early consulting support, engineering review, or testing of suspected contaminants prior to starting projects to help remove some of those unknowns before a bigger commitment is taken.
Adding contingency funds into any cost estimate is one way to help bring a project closer to cost certainty. Lomanto said discussing and planning additional budgets for potential hidden costs may be a tougher sell up front, but it’s a trust exercise. Homeowners understand that adding a contingency to the budget has a purpose. If it isn’t used, great. If it is needed, we’ve accounted for it.
“Understanding the existing home in conjunction with the homeowner’s needs helps us to make their costs more predictable,” he said. “Often, we look at other contractor pricing and see they have zero contingency in cost and therefore zero room for variables that are uncovered during the demo – this is where trust is lost. It’s important to ensure that when problems are uncovered, it’s communicated to the homeowner and they’re educated on their options. It may be a need to replace items like outdated electrical wiring or it could be a positive discovery like an opportunity for higher or even vaulted ceilings.”
Lomanto said his goal is to be accountable to the client at every step. He acknowledged that everyone seems to have a story involving a non-reputable contractor. “Those companies are certainly out there and we work hard to earn that positive reputation back on every job we do. When you set expectations, have open and honest conversations throughout the project, it helps everyone feel more comfortable. Renovations are serious purchases that have serious costs. These are some of the biggest purchases people will make in their lifetime and they want to be sure they can predict, plan, and execute around transparency.”
When you are considering a renovation, Lomanto says it’s important to recognize that “there’s never a more cost-effective time to do a renovation than today. We look back on projects from years past and think it would be nearly impossible to achieve now with the same budget. The average price to complete renovations increases each year. While we see news highlights when things like lumber or steel are high vs. low, the trendline remains a positive increase in costs. We understand it’s a big step for anyone and we want to give our clients real confidence in that step.”
Precise Custom Homes is an HCRA licensed and Tarion™ certified home builder proudly working with homeowners in Dundas, Hamilton, Burlington and surrounding areas. Given the time and precision required for each new build or renovation they complete, Precise Custom Homes only takes on a limited number of projects each year.
If you are considering a renovation or complete rebuild done with craftsmanship, integrity, and purpose, visit Precise Custom Homes online.
link