The Definitive Guide: Hidden Costs of Remodeling a House in the Twin Cities

Budgeting for a remodeling project can be complicated. It’s not just the cost of materials and labor that matters. While your renovation budget needs to include these, you don’t want to overlook hidden home renovation costs that can drive up your total spend.

In the Twin Cities, common hidden costs in home renovation projects can include:

• Electrical upgrades
• Foundation and surface leveling issues
• Lifestyle disruptions like boarding your pets and eating out more often
• Higher energy bills from open doors
• Permits and fees beyond the typical building permits
• Insurance premium increases
• Deep cleaning after construction work

It sounds like a lot, but planning for these expenses now helps you avoid surprise bills during and after construction. Let’s take a closer look at each of these expenses so you can budget your project with confidence.

Electrical Upgrades

The National Electrical Code (NEC) is strictly enforced in Minnesota, and many remodeling projects trigger electrical upgrades even if they aren’t directly related to your renovation. If you move a wall, add an outlet, or change the “intended use” of a room (e.g., turning a storage room into an office), you may be required to bring the entire circuit up to code, not just the new part.

You may also need electrical panel upgrades to accommodate new appliances and other features that draw more power. Installing a subpanel is an option if you need more space for connections, but this doesn’t add more power. If your home is running on a 100-amp panel, you will often need a 200-amp service upgrade to power modern appliances.

In Minnesota, this doesn’t just mean paying for a new panel installation. Minnesota law also requires that you install an “Outdoor Emergency Disconnect” for any electrical service upgrade. This is essentially an exterior “off” switch required for firefighter safety.

Foundation and Surface Leveling

Homes naturally settle over time, which can lead to uneven surfaces that need to be addressed before making any high-end upgrades. Uneven floors and walls aren’t just an aesthetic issue. They can cause new tiles to crack, doors to stick, and cabinets to hang unevenly. Not only that, but having an uneven subfloor can void the warranty for some materials.

In many cases, unevenness can be addressed with self-leveling cement or other surface-level repairs. However, uneven floors and walls can also be a sign of something more serious. With Minnesota’s freeze-thaw cycle and the prevalence of clay soil, sinking can cause structural damage that should be repaired before renovation work can begin.

Lifestyle Changes: Pet Boarding & Eating Out

At James Barton Design-Build, we work hard to minimize disruptions to your home during our work. However, renovation work is loud and dusty. Even though we mitigate this by sealing off the renovation area to contain dust, many homeowners still like to make alternative plans during the more disruptive phases.

Boarding your pets during the day can reduce the stress that they might experience being at home during renovation work. Boarding can also be safer during some stages of the project, as doors will be opened more frequently. While this is often in your pets’ best interest, you will want to budget for boarding costs.

Many families also prefer to eat out rather than cook at home during a renovation, even if the project doesn’t affect the kitchen. It’s a good idea to give more room in your budget for meals during a renovation.

Higher Energy Bills

One commonly overlooked house renovation cost is the impact of open doors on your energy bills. During certain phases, doors and windows may need to remain open more than usual. This makes it harder to maintain a consistent temperature in your home.

A good renovation contractor will seal off the renovation area as much as possible to minimize the disruption, but temporary construction barriers usually don’t provide much insulation. This means you may end up running your HVAC system more during renovations.

Unexpected Permits and Fees

When you budget for a renovation, your home renovation costs should include fees for any zoning and building permits you might need. Standard building permits are a given for major renovations, but some projects trigger additional fees you probably weren’t expecting.

• Sewer Availability Charge (SAC) and Water Availability Charge (WAC). If you’re adding a new plumbing hookup to your home during a renovation, you’ll often need to pay a fee to the Metropolitan Council. Some Twin Cities suburbs may charge additional fees under city code.
• Impervious Surface Limits. Many Twin Cities suburbs limit how much of your property can be covered by surfaces impervious to rain. If your renovation extends the footprint of your home or patio, you may need to submit a Variance Application for an exception to the rule. This requires an additional fee.
• Watershed District Rules. Living near a lake or wetland in the Twin Cities is extremely common. If your project involves digging and disturbing a significant amount of soil, you may be required by city code to install a rain garden or underground filtration tanks to manage stormwater runoff. This can significantly increase your site prep budget.

Home Insurance Premiums

Home renovation costs can also hit you after the work is done. When you make extensive upgrades to your home, it significantly increases your value. While it’s great to do projects that boost ROI, this can also affect your home insurance premium.

The amount can vary significantly depending on the scope of your project, but it’s a good idea to contact your agent before work begins. The good news is that not all renovations cause an increase. A new roof, home security upgrades, or modern wiring and plumbing systems can actually reduce your premiums.

Post-Construction Deep Cleaning

At JBDB, we mitigate construction dust and clean up at the end of each day during renovations. This keeps your home clean and tidy while work is being done. But even when taking every precaution to keep your home clean, most homeowners like to do a deep clean at the end of a project.

You can do this yourself, but you will often have more peace of mind by hiring a professional cleaning company that has all the supplies needed for a deep clean. Silica dust from tile is abrasive, and without the right approach, you can unintentionally damage new surfaces simply by using the wrong cleaning materials.

Because construction dust is extremely fine, many homeowners also like to invest in duct cleaning after work is complete. If using professional cleaning services, be sure to include it in your budget.

Start Planning Your Renovation with Confidence

Renovating a home is an exciting time, but unexpected expenses can make the process stressful. At James Barton Design-Build, our expertise isn’t just in designing spaces or knowing how to construct them.

With decades of experience in the Twin Cities, we understand how to anticipate hidden home renovation costs rather than reacting to them mid-project. Not only does this keep your project on budget, but it also helps you get the results you’ve always wanted for your home.

Contact our team to learn more about our process and start planning your renovation!