Our last blog focused on choosing new construction versus
renovating and remodeling an existing home. There are many benefits of moving
forward with a new build, and after we wrote that piece, many felt pretty confident
that a brand-new home would be top choice at this time. However, after thinking
about the remodeled homes we have been fortunate to tour, and scouring many
articles and before-after photos online in my preparation for this piece, many of us have reserved the right to change our mind. While a major remodel is a
time-consuming and likely inconvenient venture, the results are downright
spectacular in many cases.
Admittedly, so many of us are partial to older homes. Their character,
unique features, ample space and storage, and established yards just speak to
me in ways new construction does not. While we love the fresh start and literal
“newness” of a new home, there is a quality it always lacks. We want to be fair
in analysis, so like the last blog, we will go through the most important
categories to consider in embarking upon a remodel, and to keep our thoughts
organized, we're going to outline the same categories as last time, only now we
will focus on remodeling an existing home – whether it’s your current house, a
home on the market, or maybe even a historical property.
·
Meeting
Code and Structural Soundness: The quality construction of a
renovation is as important as its cosmetic appearance. Be sure your contractor
has plans to show you, references, and a portfolio of work that mirror the
vision for what you want upon completion of this project. What materials will
be used? How will demolition and subsequent rebuilding be handled? How often
will inspectors stop by to check in and ensure standards are met? Better yet,
does your contractor note and explain building code during conversations about
the renovation plans? Once you build trust in your contractor and his or her
team, you can feel confident that the plans – no matter how extensive – will be
carried out with the highest quality and safety concerns in mind. Just be ready
for frequent visits and permitting hoops from your local building commission.
·
Short and
Long-Term Costs: Compared to building, the short-term costs for remodeling
tend to be higher. You can certainly get a loan for the work, but many
contractors need deposits up-front to start the work, and all too often I have
seen budgets creep up during projects due to unexpected issues or changes to
plans. Extensive, high-end renovation jobs can often cost as much as building a
new home (kitchen remodels alone average $50,000!) but in the long run, you should
feel like the location, neighborhood, and “bones” of the home will be worth the
monetary investment. One prime example we can share is a client’s current
renovation project. They found that their 100-year-old home was tilting forward
when they took out the old flooring. They had to completely replace the floor
joists and most of the foundation – totally unexpected and quite expensive.
·
Return on
Investment: There is a great deal of potential to turn a dated, crowded
home into a showstopper after renovation. Many older homes do not boast the
open concept, trendy finishes, and modern features homeowners expect today, but
they do have character and other outstanding qualities that make them worth
keeping. When an older home has been renovated in a way that updates it while
maintaining its “old charm”, it has the potential to turn a major profit upon
sale. It will either make a stunning home for those remodeling and planning to
stay or move in, but it also offers a tremendous opportunity for the right
investor with a vision. Let me just caution you though; take note of the block
or neighborhood. Do not invest in a six-figure renovation only to price
yourself out of the area. Set the bar high for the whole community, but be sure
the renovation plans don’t outpace the rest of the area.
·
Location:
The locations of homes worth remodeling tend to be one of the selling points in
this venture. Older, established neighborhoods are well-placed in towns, have
mature trees, larger lots, more space to enjoy. As communities grow, new
subdivisions are developed outside of town or away from urban spread. Personal
preference certainly plays a role in deciding what location is best for you, so
think through where you want to be in relation to a downtown area or parks,
schools, retail, etc. In many areas, the older neighborhoods are within walking
distance of restaurants, shops, theaters, and more. Many people find that
feature extremely attractive and decide to renovate a home to be near “the
action”.
·
Efficiency
and Technology: While new construction might be favorable to feature the
newest home features, many of the things you might desire can still be
installed in a renovation. The building materials play a major role in a home’s
efficiency, so if you replace the roof or windows, or even major systems like
HVAC and electrical, talk to your contractor about which options will be
favorable for the home’s efficiency because an older home and its dated
materials need all the help it can get to compete with new construction.
·
Design
and Layout Options: Designers and general contractors are
almost miracle workers. They do some absolutely incredible work to transform
the worst spaces into stunning rooms. While they can make nearly any vision a
reality, homeowners need to be aware that there could be limitations and
unexpected adjustments that accompany a renovation that a new build wouldn’t
face. Remember, a renovation is gutting an existing home, a structure with that
already has wiring, support beams, plumbing pipes, and gas lines that may or
may not be able to be moved. If they can be, it’s often very expensive, but
worthwhile if your budget can handle the hit. I definitely recommend getting drafts
of several renovation plans to consider and finding as many potential
roadblocks as possible before getting started.
·
Long-term
Maintenance: A home that undergone a major renovation still might require a
bit more maintenance than a newly-constructed house. There will still be some “old”
components in the home, so just keep an eye on what needs to be done on a
monthly or annual basis. A renovation project does not come with a warranty
like a brand-new home, so additional investments could be necessary if anything
breaks down. That possibility is certainly
not a reason to shy away from renovation, but you must be aware and plan to
care for an older home in a way that keeps it looking and aging its best.
What else are considerations you feel are important in this
decision? Which side do you tend to lean toward? We'd love to know!
