The housing market isn’t the most steady market out there and everyone who flips or renovates knows that. It depends on the area, the current pricing and several other factors. However, in a related study done by Harvard University, a study on the Joint Center For Housing Studies showed that renovation and remodeling is still a multi billion dollar industry. This comes at a time where the market isn’t the best and the market continues to show its strength. Why is this? To answer that question, we need to look at the cost of remodeling.
Have you ever looked to purchase a new home? In decent neighborhoods, the price of the home is sky high. This is because you pay for the neighborhood and not necessarily the home itself. This is why the rent inside of a major city is often far higher than it would be 5-10 miles outside of the city. The market is so strong because home owners are coming to the realization that buying a home is far more expensive than just renovating it to make it fit their current needs.
Unfortunately though, to the untrained renovators and homeowners, renovating your home can sometimes cost more than the house you bought or buying a new house altogether. That’s why there are some obvious dos and donts when it comes to renovation.
First, let’s start off with the things you should do when renovating.
- You should always start off any project with a market check. You need to evaluate the market of your home and hire a professional consultant to do so if necessary. Make sure that the proposed renovations or improvements are actually worth doing.
- Make sure that you carefully plan out the project. You need to make sure you plan it out in such a way that you can live there while work is being done.
- If you decide that you’re in over your head and want to hire a contractor, you have got to do background checks and make sure that you know who you’re hiring. Past working experience, previous projects, insurance, criminal record, etc.
- Again, if hiring a contractor, it’s best to shop around and not go with the very first contractor. Make sure you get an estimate from at LEAST 3 different contractors before proceeding.
So what about all of those things you shouldn’t do?
- Do not hire any kind of unlicensed contractor even if it is a great deal. Sure, the price may sound cheap but you’re going to get cheap work from a very shady contractor.
- Don’t hire anyone to do the job before you shop around. You don’t know what deals you’re missing out on until you start shopping around to see what’s out there.
- Do not under any circumstances act as if you’re a builder or an owner.
- Make sure that you never pay 1) in the full amount and 2) with a proof of purchase receipt.