Plan for Surprises When Remodeling an Older Home

Older homes often contain hidden problems that aren’t discovered until demolition begins on a remodeling project. Dry rot, outdated wiring, deteriorated plumbing or substandard work completed by the previous owners can complicate what initially appears to be a straightforward job. Also, construction work that was acceptable decades ago may no longer meet today’s building codes.

A problem that appears isolated may actually be a symptom of more extensive damage. For example, dry rot discovered during a bathroom remodel may originate from a leak elsewhere in the home, allowing moisture to travel through multiple floors or walls. Until the affected areas are opened and inspected, it can be difficult to determine the full extent of the damage.

If you’re planning to remodel an older property, you should maintain a contingency fund for unexpected repairs. Setting aside an additional 10% is a common rule of thumb, although severe problems may cost considerably more. While it’s impossible to prepare financially for every worst-case scenario, having extra funds available can make unexpected discoveries easier to manage.