Are you thinking of tackling a home renovation project?
Renovating your home can improve its functionality, make it a more enjoyable space for you, and even increase your property value.
But home renovations are stressful, even when everything goes correctly. When mistakes are made, a renovation project can turn into a nightmare.
Here are a few of the top home renovation mistakes to avoid.
1. Underestimating Costs
In 2019, around 30% of renovation projects went over-budget. There are three main reasons why renovations go over budget:
The homeowners decided along the way that upgrades were worth spending a bit more.
Something came up during the renovation process that the homeowners didn’t anticipate (you never know exactly what you’ll find when you start opening walls!).
The homeowners thought labor and materials would cost less than they actually did.
Before you start your renovation, invest some time in researching labor and materials costs. Get quotes from multiple contractors, and budget for around 10% more materials like paint, flooring, and tiles than you think you’ll need.
Also, consider adding a general slush fund of 5-10%. You may not be able to anticipate every cost, but you can be fairly sure something unforeseen will come up. So prepare for it in your budget.
2. Going Too Trendy
The problem with trendy interior design is that it quickly becomes dated. If you’re making a substantial investment in renovating your home, the last thing you want is to re-renovate five years later.
Instead, stick with classic fixtures and finishes that are always in style. You can always add trendy elements through easily-changed accessories like furnishings, linens, and art.
3. Overestimating Resale Value
Ten years ago, mid-range kitchen and bath remodels nearly always paid for themselves by boosting the resale value. But that’s no longer the case in the 2020s. According to Remodeling’s Cost Vs. Value 2020 Report, homeowners in San Francisco will recoup around 73% of major kitchen remodel costs and around 89% of their bath remodel costs.
While some renovation projects produced a positive ROI in the San Francisco market, not a single project recouped 100% of the cost or more in the national averages in 2020.
If you will get more enjoyment from the home because of a renovation, then, by all means, go for it!
But if you’re renovating specifically to increase your property value, stick with simple projects with solid returns in the Bay Area. Replacing your garage door or entry door goes a long way in our market.
Should You Renovate Before You Sell Your Home?
Sellers often ask if they need to renovate before listing their home for sale. In most cases, renovating before selling won’t increase the sale price by enough to justify the expense and hassle of a renovation. But that isn’t always the case. Each home is unique, and the market is changing every day.
Contact us today to get a personalized, professional recommendation from one of our real estate experts. Are happy to take a look at your home and offer complimentary advice to help you maximize the net profit on the sale of your home. We look forward to serving you.