Home Renovation – What You Need to Know

There are many reasons that you may be considering a home renovation. Whether you are adding a bathroom, a family room, a garage, etc. – or just updating your kitchen or bath, there are a ton of things you need to know and prepare for. The best way to go about a renovation is with knowledge and patience. Being prepared ahead of time and knowing what to expect will help you with that patience during your home renovation!

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Financing Your Home Renovation

As with any big purchase, make sure your finances are in order and begin speaking with a loan professional to figure out what kind of loan you should take out and what are the best options for your situation. If you are using cash, awesome. Make sure you budget correctly for going over, whichever way you plan on paying. It’s ideal to budget for an extra 20%. Things always come up…always.

Your loan professional will be able to go over different options with you for your home renovation; such as a 203K loan, a cash-out refinance loan, a home equity loan, personal loan, etc. Your loan will depend on the amount you need to borrow, and what kind of renovation you will be doing. The loan professional will give you an idea of what your new monthly payment will be, the interest rate, and the term of your loan.

Using an Architect

Many times in a home renovation with an addition, an architect is necessary. In some cases they are not, but if you are changing a lot of angles or roof lines, coming close to your property line, or redesigning your whole house, it’s best to at least meet with one. The cost of the architect will be determined by your renovation size and cost. Typically plan on 8-20% of your project cost. You will pay them different amounts at different times – usually the first set of plans, the final plans, changes, and upon completion. Find out who friends or family have used, or who your contractor suggests.

Reading blueprints can be tricky. Make sure that when you meet with your architect you really pay attention and understand the plans. You will need to make note of any corrections that need to be done. The finalized plans are what you will be taking to the town for approval. Though there can be some changes made during construction, the framing should be staying the same.

Finding a Contractor

When looking for a contractor, it’s great to ask around to see who has had a great experience, and who hasn’t. People usually love to share their experiences – especially the bad ones! So take everything in. Make sure when you do meet with a contractor, you go over everything thoroughly. If they can’t answer your questions and you leave the consultation more confused, be worried. You want someone who is extremely knowledgeable, where you leave them feeling excited, understood, and having learned something new.

Once you find a suitable contractor, follow them on social media. Check out their before and after pics, keep an eye on their work and comments on their posts and pages. This can give you a clear look into what to expect. Just keep in mind, hiring the best contractor might mean waiting till they are between projects. If their work is superior though, it can be worth the wait.

I’d advise to get at least 2-3 estimates. Hold these estimates….loosely. The prices will change considerably for many reasons. Lumber prices may go up, you may choose the more expensive windows, you may have carpenter ants, or flooring that can’t be saved. You should have a pretty good idea of what you’re getting yourself into at the start.

Contractors all work differently. Some will get you a detailed estimate in a week. Others will get you a lump some estimate in a month. Some will get the job done with 3 guys, some will come with a 20 man crew and whip it out. Work with the one that makes the most sense for your project.

Considering replacing your roof in your renovation? Check out this article on Metal Roofs vs. Shingles to compare your options.

Obtaining Permits

As soon as you can, head over to your local town hall and get the paperwork to obtain permits from the building department. This can take a long time to get approved! It can take a month or two for review and approval – and your contractor really can’t start until you have those permits. Just make sure you take out the appropriate ones – construction, building, electrical, plumbing, etc. If you try to get around it, it will only come back to bite you if you ever go to sell your house. It’s really best to be upfront about permits.

You should also have (or get) a survey of your property. The architect will need this – but if you aren’t using one, the town will still need it. They will need to determine how much land you are disturbing, and the health department needs to see how close you are to the septic tank, etc. Depending on how much square footage you are adding, they may also require an engineer.

Once the work is done, inspected, and the permits closed, your taxes will go up. Keep that in mind. You can give your local tax assessor a call and get a very general idea of how much your taxes will be after your home renovation is completed. They will want to know how many bedrooms or bathrooms you are adding, and how many square feet. It will be a guesstimate, but still good to have an idea of what to expect.

Getting Ready For Your Renovation

It’s a very exciting time when getting ready for your home renovation! Here are a few things to keep in mind:

• Will you be living in the house through the renovation?

Depending on what parts of your house are being worked on, you may be able to stay during the renovation (it may just be tricky!). If you cannot, consider staying with family or friends. Not an option? Ask around and see if any rentals in the area are open to a short term lease.

• Where will your animals be?

If you will be staying at your house during the renovation, keep in mind that the dust is harmful to animals. They are nosy and curious and can be affected. The noise can also be very stressful for them. Consider bringing your animals to a “doggy daycare”. Many people offer in home care now, with competitive prices such as $25-$40 per day.

• Will there be times when you do not have heat or water?

Heat and water are kind of necessities…so if you are planning to stay, you need to have something lined up for these days. Shower at the gym if you can, eat out for meals or use the crock-pot. Get laundry done ahead of time, or use the laundromat. Check into a hotel for a few nights of relaxation during this crazy time. Or crash at a friend or family member’s and have a fun visit!

• Do you need to store your belongings?

If you are doing a considerable renovation, you may need to pack up and get out, or at least move things around. Decide what you will keep and what you are going to toss and buy new. Bring some things with you, ask a friend with a large basement if you can store some things there, or rent out a storage unit for a few months.

Read – Paint vs. Stain: Kitchen Cabinet Renovation

Embrace the Chaos!

Of course this is going to be a super stressful time. Know that things aren’t going to go as planned. There will be bumps in the road. It may feel like everything is “hurry up and wait”. Just keep your end goal in sight! You are going to have a beautiful kitchen or family room, a huge master suite, or a brand new bathroom! Your vision will come to life.

When it’s finally done, all of the hard work and planning will pay off and you will get to enjoy your newly renovated home for years to come.