Big home improvement projects usually percolate in our heads for months, maybe even years, before we finally take action.
The motivation to break out the tools, or to start hiring contractors, can vary from wanting to prepare your home for sale, or simply rewarding yourself with some creature comforts, such as a landscaped garden, swimming pool, gourmet kitchen or an outdoor entertaining area.
It’s no surprise that large-scale upgrades have become a primary focus given that so many of us have been spending more time than ever in our homes because of the pandemic.
A recent survey found that more than 60% of Americans have improved their home since March when the pandemic took hold.
Before you undertake a project, you should assess the cost and time the work will take, as well as the inconvenience to your life.
You should view it as an investment and be confident it will give you some payback when it’s time to sell, and you either downsize or move up the property ladder.
As a local real estate agent, I’d love to provide some guidance on the upgrades that are most likely to be smart investments. I work with buyers interested in our neighborhood every day in know better than anyone which features are in demand and command a price premium.
Here’s a list of crucial things to consider before undertaking any project.
- Create a budget – Know the damage to your bank balance in advance. You want to be sure you can afford the work, and that you are convinced the project is worth the money either in terms of being a good investment or improving your lifestyle.
- Be blow-out ready – Few renovations finish on time and budget despite meticulous planning. Building is not a perfect science, and challenges arise. So, add 20% of the cost to your budget for contingencies.
- The money trail – Consider how you might most effectively pay for the work. Are you going to dip into savings, take a loan, use the equity in your mortgage, or bust out a credit card? Each option will have different interest rate implications. Ask your bank or mortgage broker to help you understand your options.
- Be the architect of your success – If your budget will stretch, it’s a great idea to use an architect for big projects. They will offer you a myriad of ideas and options before drawing up plans and working with the construction company. For an additional fee, they’ll be your project manager. An architect will help you with a budget, too.
- Hiring contractors – You should seek a minimum of three quotes. Each candidate should demonstrate a track record with the work you require and offer client references. Ask for a warranty over and above state protections. Don’t forget to check their license details and insurance. Be consistent with your briefing to each contractor so you can compare quotes equally. The winning one will firm up your budget.
- Cost vs. quality – Unless money is no object, you’ll find this a constant consideration. Your architect and builder will be able to offer opinions on where you can make trade-offs but not affect the project. They won’t always agree, so this responsibility ultimately falls on you.
- Don’t forget permits – Sometimes, you’ll need to get the approval of the authorities to carry out the work. Don’t ignore this obligation as it will cost you dearly if you run outside local regulations. Talk to your architect and contractor about permits before the work begins. If you’re not using an architect, talk to an official to avoid problems down the track.