Home Renovation Questions
5 Questions to Ask Before You Start a Home Renovation Project
With money so tight these days, it's no longer a matter of grabbing a hammer -- or hiring a contractor -- to get the house of your dreams. Instead, you've got to make decisions about home renovation projects carefully, after doing some homework.
In fact, before you start any kind of home renovation project, you need to get answers to these 5 questions:
1. "Am I getting the most bang for my buck?"
Some renovation projects pay for themselves when you go to sell your home. Others may look nice, but won't fetch you a whole lot of extra money from a buyer.
For example, upgrading the structural integrity of your roof or fixing cracks in your foundation will pay off because no one wants to live in a weak home -- no matter how pretty it may be on the inside!
Building a state-of-the-art home entertainment room, on the other hand, probably won't pay for itself in a sale -- unless you plan on leaving the TV and sound system behind for the new owners (which most people don't do).
Bottom line -- before you hire anyone to pick up a hammer, do some homework and see if you're likely to get your hard-earned money back later.
2. "Is this project too fancy for my neighborhood?"
Remember, your house doesn't exist in a vacuum. The houses sitting next door, across the street, and down the block will all play a role in what kind of money you fetch in a sale. If you add something that is "too much" for your neighborhood -- like an indoor pool or a wine cellar, for example -- don't count on getting very much of that money back.
Unfortunately, some over-renovating mistakes aren't as obvious. For example, some neighborhoods come with the expectation of granite countertops in the kitchen. But if your neighborhood is more of a laminate place, a kitchen that's TOO updated won't do you a whole lot of good.
3. "Can I hire one company to do everything?"
Whether you're trying to boost your curb appeal or simply create a little more luxury for yourself, the last thing you need is to babysit all kinds of different designers, contractors, and vendors. In order to make your home renovation as stress-free as possible, look for a contracting team that can do everything -- from design, to demolition, to final touches -- from start to finish.
4. "Do I need a loan?"
If the answer is "yes", find another project! The days of easy-to-come-by home equity loans ended when the housing bubble burst in 2007. These days, most homeowners are stuck paying cash for all of their renovations. As a result, you'll have to pick the most important projects and leave the others for later.
In fact, you'll have to decide if doing home renovations is more important than other expenses that have nothing to do with your house whatsoever. Whether it's paying for Junior's school, going to that family reunion out of town, or paying off your car, you'll have to decide if renovating your house is the biggest priority.
5. "Will a new owner get any use out of this?"
If you plan on moving sooner rather than later, you've got to think for two -- yourself and a potential homebuyer. Even though you don't have a crystal ball, there are certain things that homebuyers don't care about -- like carpeting. The color you choose may not mesh with a buyer's tastes, so they'll replace it with something else. Just like that, your home renovations are a complete waste of money!
If you won't be calling your house home for long, focus on renovations that just about anyone can appreciate -- like new kitchen appliances or an upgraded bathroom.
With money so tight these days, it's no longer a matter of grabbing a hammer -- or hiring a contractor -- to get the house of your dreams. Instead, you've got to make decisions about home renovation projects carefully, after doing some homework.
In fact, before you start any kind of home renovation project, you need to get answers to these 5 questions:
1. "Am I getting the most bang for my buck?"
Some renovation projects pay for themselves when you go to sell your home. Others may look nice, but won't fetch you a whole lot of extra money from a buyer.
For example, upgrading the structural integrity of your roof or fixing cracks in your foundation will pay off because no one wants to live in a weak home -- no matter how pretty it may be on the inside!
Building a state-of-the-art home entertainment room, on the other hand, probably won't pay for itself in a sale -- unless you plan on leaving the TV and sound system behind for the new owners (which most people don't do).
Bottom line -- before you hire anyone to pick up a hammer, do some homework and see if you're likely to get your hard-earned money back later.
2. "Is this project too fancy for my neighborhood?"
Remember, your house doesn't exist in a vacuum. The houses sitting next door, across the street, and down the block will all play a role in what kind of money you fetch in a sale. If you add something that is "too much" for your neighborhood -- like an indoor pool or a wine cellar, for example -- don't count on getting very much of that money back.
Unfortunately, some over-renovating mistakes aren't as obvious. For example, some neighborhoods come with the expectation of granite countertops in the kitchen. But if your neighborhood is more of a laminate place, a kitchen that's TOO updated won't do you a whole lot of good.
3. "Can I hire one company to do everything?"
Whether you're trying to boost your curb appeal or simply create a little more luxury for yourself, the last thing you need is to babysit all kinds of different designers, contractors, and vendors. In order to make your home renovation as stress-free as possible, look for a contracting team that can do everything -- from design, to demolition, to final touches -- from start to finish.
4. "Do I need a loan?"
If the answer is "yes", find another project! The days of easy-to-come-by home equity loans ended when the housing bubble burst in 2007. These days, most homeowners are stuck paying cash for all of their renovations. As a result, you'll have to pick the most important projects and leave the others for later.
In fact, you'll have to decide if doing home renovations is more important than other expenses that have nothing to do with your house whatsoever. Whether it's paying for Junior's school, going to that family reunion out of town, or paying off your car, you'll have to decide if renovating your house is the biggest priority.
5. "Will a new owner get any use out of this?"
If you plan on moving sooner rather than later, you've got to think for two -- yourself and a potential homebuyer. Even though you don't have a crystal ball, there are certain things that homebuyers don't care about -- like carpeting. The color you choose may not mesh with a buyer's tastes, so they'll replace it with something else. Just like that, your home renovations are a complete waste of money!
If you won't be calling your house home for long, focus on renovations that just about anyone can appreciate -- like new kitchen appliances or an upgraded bathroom.
