Remodeling Your Home – Advice

 

Joanna and Chip Gaines are a very cute couple.  They do great work, are very talented, and deserve all the success they are experiencing, but how their show is viewed as “reality” is where I hugely disagree.
(yes, I know their show is ending)

You see, I just completed a 7 month house renovation and for the most part it went very well, leaving me with minimal complaints.  However, what is portrayed in the “Fixer Upper” world- House purchase for 90k, remodel for 60K all in for 150k and done in 6 weeks is all but reality.

Now this post is not really about Chip and Joanna.  This post is aimed to provide all of those out there who are debating whether or not to do a house renovation with a true dose of reality from someone who just went through it and share with you some major financial things I learned along the way.

Home Remodeling Advice

Hire an architect.

The architect is the equivalent of the financial planner.  The person who brings it all together!   Our architect was able to maximize the design of our 1920’s house in a way I couldn’t even imagine. The architect’s plans and drawings put everyone on the same page including the construction crew and project managers right from the beginning.   Hiring an experienced architect is the first big (an expensive step) to this process, but one that I feel is well worth the money.

Interview 5-10 builders and do your homework before meeting with them. 

If you’re doing a big job, you must get 5-10 quotes- easily.  I interviewed 8 builders, both big and small companies.   The prices were bunched together for about 4 of them. There were 2 “screw you” quotes (quotes so high, they clearly didn’t want the business),1 so low that I didn’t trust they could get the job done.  and 1 in between.  You need many quotes to see how they each price/value the job.  It’s also important to have an idea of materials and styles you are looking for as you are interviewing each builder to better help them give you an idea of how much the project will be.  A great place to start is over on www.houzz.com.  Here you can create vision boards and share them with each builder you meet with. (website not endorsed by IFS). I know this sounds crazy but, the more you can pick out ahead of time the higher the chance of your project coming in on budget.  Just because your builder will give you a ‘bid/contract”, it really is just an estimate of what the job will cost.  There will be decisions that will have to be made that will not be included in the initial bid.

There is always another decision to be made. 

As the construction moves along, there are always options to upgrade things or unforeseen events- both will cost you more money.  It’s like investing in the stock market, you must keep your emotions in check.  It’s easy to say yes to everything but that is not realistic.  You must live in the middle. Every decision you make will affect the next decision, so If there are unforeseen  plumbing/electrical issues  and  you need to spend an extra $5,000, you won’t have that $5,000 to upgrade your countertops for example. Everything comes with a price tag, and during home renovations, you will see how quickly your money takes fight- right out your new door.

Make sure you have some money left over. 

It is important to make a spreadsheet and keep track of the true budget.  Whatever your “all in budget” is to remodel your house, should not include your safety net.  You must plan to still have an emergency fund during and after the work is done to protect you from the unexpected things that life throws at you.  If you find that your project is going WAY over budget, it’s time to take a step back, and re-evaluate what is a necessity vs. what is luxury to find that middle ground so that you aren’t left with zero dollars in the end. Our renovation took 7 months and came in about 8% above the contracted price- no complaints here, and I still have money in the bank.

Home renovations are not for the faint of heart, or for a pregnant wife (mine was pregnant the entire project, something even she said was a bad idea).  If you go in with a plan and take my advice into consideration, you are on the right path to home renovation financial success!

As always, you can consult with me to discuss your personal financial situation.

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Thanks for stopping by and I hope you achieve financial success!