Everyone loves home renovation shows on television, but renovating a home isn't as glamorous or as easy as these programs make it seem.
If you're buying a fixer-upper or deciding whether or not you want to do major renovations to your existing home, it's crucial to have some knowledge of the realities.
New and experienced homeowners alike often make one of these five renovation mistakes. Read on to avoid learning these lessons the hard way.
1. Focusing on Aesthetics Only
Everyone wants a beautifully redone kitchen, bathroom or living space that is functional and aesthetically pleasing. However, your renovation dollars should first go to the home's main components before beautifying the fun and more visible areas. This includes plumbing, electrical, water heaters, roof, windows, insulation and structural work.
Alyssa Thomann, a first-time homebuyer who renovated a cabin in upstate New York with her husband during the pandemic, found herself in this position. Immediately after closing, they had to spend tens of thousands of dollars on major home repairs, including reinsulating the attic and eradicating pests. They also discovered the septic system was waterlogging their backyard.
"We were planning on having our wedding in the backyard," says Thomann. "We had put off fixing the septic system by doing small fixes, like adding a French drain, and were finally left fixing the issue the summer before our wedding, which caused so much stress and was extremely expensive. We ended up renovating the kitchen regardless, which was all aesthetic. It turned out so nice, but we should have focused on the bigger items first."
Focusing on the core components of a home before making aesthetic changes reduces your chance of running out of money or being left with big bills for issues that need to be addressed immediately.
2. Underestimating the Timeline
While it's not always the case, most renovations will take double the time and cost more than you expected. "Everything takes a little bit more time than you think," says Morgan Ellis of St. Petersburg, Florida, who has renovated two of her primary homes with her husband and three children as well as more than 20 investment properties. "A good rule of thumb is to double your timeline."
Sometimes addressing one project leads to another. "When we put in our pool in our current house, we ended up having lots of calcium and lime in our soil," recalls Ellis. They had to rent equipment to address it, which took more time. Then a hurricane stalled everything for a month. "We ended up having a big giant dirt pit in our backyard for a while until it was finished. There are things out of your control, like the weather, but there's a good chance it will take longer than expected."
3. Not Allocating Enough Funds for the Job
Estimating your renovation costs is one of the hardest aspects of a project. Cost for materials and labor can fluctuate dramatically, depending on where you are and the current availability of experienced contractors. Even if you're doing it yourself to save money, there is a good chance you'll uncover surprises that make a job cost more than anticipated.
Always get several estimates from licensed and qualified professionals to get an idea of what the job will cost. If it's a big project that could reveal other issues like structural problems or water damage, budget more than the quote alone.
As a real estate investor who has renovated nearly a dozen homes since 2014, I learned to set aside an extra 20% of my total renovation budget for unexpected costs or items I forget to include. We just renovated our primary residence in St. Petersburg in 2023. We spent roughly $20,000 more than we had budgeted because we discovered problems we didn't know about until diving in.
4. Not Inspecting Thoroughly
Getting a thorough inspection of the property before you buy can be a helpful way to gauge what projects need to be done first and what they may cost you. But a basic inspection might not reveal all of the issues. Inspectors do the best they can with potential visible issues in the home. However, you may need to hire additional inspections to understand the full scope of the problem.
"As new and first-time homebuyers, we had no idea how intense the inspection process should be," Thomann says. "We had an inspection, but I don't think it was to the level it needed to be. The inspector indicated there were critters in our attic and recommended we get it checked out."
Unfortunately, the inspection didn't indicate how serious or expensive the issue might be. The inspector also didn't complete a full-blown septic inspection, which is done by a septic specialist, not a general inspector. As a result, the couple missed another big issue with the home.
"I didn't have any experience with a septic system before," says Thomann. "So, I did not know we should have the septic inspected by a septic specialist before buying. After a year, the yard got waterlogged because our septic system backed up. I wish I had known more about the inspection process as a whole."
5. Hiring the Wrong Contractor
Another common mistake is hiring the wrong contractor. It's always ideal to hire contractors and people you know and trust. "Having references from someone you know is great, if possible, because there are sly people who will take your money and run or get half the job done and never finish it," Ellis says.
Frank Spottke of Treasure Island, Florida, is in the middle of a two-year-long major home renovation project. The home was taken down to the studs and is being completely rebuilt with new plumbing, electrical, windows, stucco and interior layout.
"You need to trust your contractor. They will try and sell you on the trust aspect, but you have to research the contractor, whether that is talking to people or looking at their reviews," says Spottke. "Avoid just listening to their promises."
He recommends asking questions immediately and making sure to get a direct answer. "You need to handle the transaction very businesslike and not let your emotions get in the way," he says. "A lot of my problems came from trusting our contractor completely, and not asking questions or clarifying what I wanted and needed when it came up."
Read more at RealEstate.USNews.com
Related Links
4 Tips To Make Your Strongest Offer on a Home
‘The Best of Both Worlds’: The Spring Housing Market Might Just Change Everything for Homebuyers and Sellers
If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.
