|Home 🏠 Remodeling: Tips & Mistakes 🚫 |
One of the ways homeowners can earn money (i.e. build wealth) WITHOUT selling is to build their home equity. As we know equity increases as this rising market appreciates in value yet “forced appreciation” is also a creative way to heighten these gains!! By renovating a space, and doing so correctly, you may “force” the appreciation to increase even more.
Helping sellers prep their homes for the market is one of the many rewarding experiences in our day-to-day. Not only does this “forced appreciation” strategy earn more money for our clients, it also attracts more buyers which ultimately maximizes the sale experience!
The Frey Team loves real estate because this industry offers the opportunity to help people like you build wealth with real estate.
Let’s dive into the details on how to approach home remodeling and the mistakes to avoid; making for a successful transformation with home equity gains!
1. Lack of Home Remodeling Research and Planning 🔧📊
“Failing to plan is planning to fail,” according to Benjamin Franklin. He must have had experience helping sellers earn top-dollar selling their homes! 😄 When it’s time to change a space in your home, you’ll want to be mindful that the finished result entirely controls how much value is added to your home equity. Researching materials, contractors, design styles, colors, etc in advance really does affect your timeline and added cost-avoidance. If needed, lean on us to connect you with interior designers, architects, engineers, and a real estate agent to help determine finished value in advance.
2. Ignoring Permits and Regulations 🚨👮
When enlisting the assistance of licensed professionals, this won’t really be a concern as this is required by their state to perform. Yet neglecting to obtain the right permits can lead to potential legal liability and consequence. Each county or city can be different so it’s best to at least give the county a call and confirm. Not only does this method sort of provide a fail-safe to poor quality workmanship, it also prevents more cost later. If a mistake is made here, it more than likely will not surface until you sell your home or turn it into a rental; thus reducing your profits in these later events.
3. No Home Remodeling Budget 💲💵
From the wise words of DJ Quik, “if it don’t make dollars, it don’t make sense.” This couldn’t be farther from the truth when it comes to building wealth! One of the more common mistakes is getting starting without including budget into your plan. To simplify best practices, it’s similar to creating a business plan. Map out all the potential cost, time, preferred budget, the who, what, when, where, why, how and thus a plan is solid. For example, remodeling a kitchen today could earn a potential 96% on average return on your investment! That’s amazing!! Yet on the same token, if you don’t stick to the budget, that margin shrinks! And nobody likes that.
4. No Contingency Budget ☝➕
This mistake is really an extension of the #3 item to avoid. So important that it needs it’s own parcel. Projects typically come with unexpected expenses such as structural issues, needed electrical updates, or problems with plumbing. Not preparing for any unexpected costs almost guarantees you will exceed your budget. Best practice is to add 5-15% to your initial planned cost budget depending on how minor or major your remodeling will be.
5. Taking the Lowest Home Remodeling Bid 😱🤑
We know you’ve heard the saying, “you get what you pay for.” The struggle is real. Proper budgeting also means that you must keep spending low, yes this is true. Remember not every material or professional should be the lowest available cost if you want the best results. When hiring a professional, consider their experience, reputation, and portfolio of work completed. Request detailed breakdowns of their cost layout and scope of work. If you need help aiming for balance between cost and quality, give us a call and we’ll connect you to a few options!
6. Unlicensed Home Remodeling Contractor 😵🤡
You know what happens when you hire a clown for a kid’s birthday party and they don’t have an official business; showing up smelling like late nights and bad decisions. Well “contractors” without a licensed business sort of provide the same experience when it comes to finishing on time and producing a memorable valuable finished project; minus the smell, but who knows!
7. Not Asking Enough Questions 🖤🗣
Be curious, get involved, make the most of the project because the only opinion of the end result that matters is you! It’s your haven so it should be perfect. Don’t be afraid to chime in on material selections or ask how they plan on getting something done. The right contractors welcome this more than you know because they understand their reputation and your happiness go hand in hand.
8. Underestimating Home Remodeling Stress 😣🙃
Projects = potential anxiety and stress. It’s completely natural especially when you want it to be perfect! Embrace the energy and turn toward staying productive. This is also where a project manager takes the weight off your shoulders; ensuring the projects are rolling along as they should. Create peace of mind by scheduling time away from the home or creating your own designated space away from the noise or the temporary mess.
9. Poor Time Management 🎭⏰
Project managers usually come with hiring a professional. Either the contractor themselves also play the project manager role or they have a partner to take care of this. Also ensure when hiring help or taking on a project yourself that project management is included in the plan. Sticking to the time plan keeps your costs low and happiness high!
10. Ignoring the Style of the Existing Home 👀👻
When completely remodeling a space, it’s natural to entirely design everything apart from the rest of the property. Doing so can unfortunately make other spaces in the home feel noticeably different or outdated; which is critical for selling or turning your home into a cash-flowing rental. Be mindful of your design elements and upgrades as the rest of house may start calling your name.
11. Choosing Lower Quality Materials 😰😡
Budget is key, yes we know you know this by now. “Buy once and cry once.” The point here is quality will render a better looking result, a longer lasting result, and usually a higher valued result. When the money is spent correctly, some lower cost items can still qualify two of the above, but you won’t get all three: appearance, durability, and increased home equity.
12. Over improving 😅🙄
Improving the space is obviously the point here, right? Well it is possible to over improve. Sounds silly I know. The point here is to stick to budget, planning, and avoid all the above to create the best result. We are hoping you’re also aligning this project as an equity building tool. So over improving by selecting luxury materials such as gold plated toilets, when the rest of your home by not be luxury, is a sure-fire way to throw away that high “forced appreciation” margin you’re aiming for.
Have fun and dream big! If you need any resources or professional advice on design elements and what the project value may render, shoot us a text! We laid these tips out for you to help increase your chances of crushing your goals. Remember to look for balance between budget, your dreams, and the right team.
Steven, Jamallia & Ryan