Must Know Construction and Renovation Tips for 2023
DIY renovation projects can be enjoyable and even cost-effective. However, if the project is too large or the doubts and unanswered questions overwhelm you, they can get out of hand in the blink of an eye. The secret to keeping things under control? Being realistic about what you can accomplish on your own. It might be more than you think if you're willing to put in the work, but there's a fair chance you are better off leaving it to the pros.
Let's not sugarcoat it: starting a renovation project differs from what you see on your favorite home improvement TV shows. This is not about a two-minute montage to the beat of an inspirational tune. No, it takes a lot of time, work, and money. Additionally, if you're remodeling an essential part of your house, you're bound to endure some significant inconveniences for a while.
For example, bathroom renovations:
Sure, remodeling your bathroom might sound exciting. Still, these types of projects are prone to go over budget fast, and if you didn't account for something important, a professional contractor might even need to take over your work regardless of your initial plan. While it’s true that a DIY bathroom remodeling project could cost less than half as much as hiring a general contractor, it’s also true that they tend to take twice as long.
So the best tip I can offer you is this: give yourself and your partner the weekend or weekends you need before making a decision. Put the project under a microscope and examine it from every angle, including time commitment, ability to adapt, costs, and the quality of the finishes. Although it will require some additional homework up front, it will ultimately save you a ton of time and maybe one less couples therapy session.
But I'm tired of waiting for the right contractor
You might know someone that's been frustrated because of a delayed home construction or renovation project. The pandemic accelerated baby boomers' retirements in this sector, with about 3.2 million leaving the workforce in the last two years—over a million more than in any year before 2016.
The resumption of training programs has also been sluggish because of safety concerns brought on by the pandemic. Additionally, the whole industry is having more difficulty attracting international workers, which have been a valuable source of talent for decades.
According to a recent U.S. Chamber of Commerce Commercial Construction Index, 92% of contractors have reported having trouble hiring workers. Of those, 42% have admitted to turning down jobs because of this problem. Simply put, there aren't as many people working today in construction in relation to market demand.
Does this mean you are stuck with a DIY approach? Not necessarily. But as with most things, it's an exercise of patience. Even if you undertake the remodeling project on your own, please keep in mind that the actual construction itself does not take up most of the project's time. Putting together the necessary financing, design, engineering, entitlement, zoning, and permitting... That's what makes this a protracted endeavor. All the paperwork can take almost twice as long as the construction process itself.
Instead of remodeling, should I sell?
Choosing between moving or renovating is never easy, especially if you adore your neighborhood. A new home might give you a fresh start and more space without the hassle and cost of renovations, but a renovation could transform your current home into the dream home you've always wanted (and increase its value).
There is no right or wrong answer when deciding whether to sell or renovate your house. Having said that, here are some things to think about as you weigh your options if you're deciding between remodeling your current home or starting over in a new one:
Location: Although you can't expect to recoup 100% of your renovation costs if you eventually sell, renovating your home might be a good choice if you like the neighborhood.
Long-term plans: Renovations might not be the best course of action if you intend to move in a few years, anyway. If you plan to put your house on the market, a pre-listing home inspection will help you identify any problems that could delay the sale of your property.
Budget: How much money can you (and are you willing to) spend on renovations? Getting estimates from contractors can help you determine what you can do within your means. And if your loans are too high, perhaps you should pump the brakes on any renovation.
Resale value: Your home's value can rise, and more buyers may become interested in your property if you pick the right renovation project. According to a 2020 Coldwell Banker survey of over 2,000 people, 80% of Americans say they would rather purchase a home that is ready to move into than one that needs work.
Upgrading before selling: Look at the housing market
You'll have to deal with factors outside your control when you put your home on the market. Some of these elements may impact whether it makes sense to renovate your house before selling, if that's your plan.
To find out how much comparable homes, or "comps," have sold for in your neighborhood and how long they were on the market, you might want to check the local real estate listings. You can determine how hot your neighborhood's real estate market is by locating comps, either independently or with the help of a real estate expert. Using this information, you can determine whether improving your home would be beneficial or a waste of money.
Another thing to consider is that rising interest rates should not be a reason to rethink a real estate transaction. Instead, focus on the net cash flow of a deal. With still record low inventory levels, rental rates will remain strong.
The bottom line is whether you decide to renovate without moving out, sell with no renovating, or renovate to increase resale value, it all comes down to your timeline, budget, and the market. It's also encouraging for buyers that interest rates are still close to historic lows, and the market today offers some of the most affordable debt a home buyer can take on.