Dreaming of making your house your dream home?
Many homeowners are deciding to renovate instead of moving during our crazy housing market.
But there’s a right way and wrong way to plan home renovations. Don’t be that person.
Kitchen remodels, residential electrical installation upgrades, you name it. We’re covering everything you need to know to plan home renovations that actually work.
Ready?
Here’s What You’ll Learn
- Why Homeowners Are Renovating Crazy
- How To Plan Your Home Renovation THE RIGHT Way
- Electrical Installation 101: Why It Matters
- Finding The RIGHT Contractor For The Job
- Planning Your Budget (and not going broke)
Homeowners Are Renovating Like Crazy
Don’t believe us.
According to the National Association of REALTORS, homeowners spent $601 billion on remodeling projects last year alone. That’s a whopping 50% increase from before the pandemic.
Translation: Most folks would rather renovate their current home than jump through hoops to buy a new one.
Kitchen and bathroom renovations come out on top here. But there’s one big project homeowners are investing in that often goes overlooked…
Renovating your home’s electrical system is more important than ever.
25% of homeowners surveyed by Houzz spent their remodeling budget on electrical work in 2022. As homes become smarter and EV charging becomes more common, that number will only continue to grow.
Residential electrical installation should absolutely be considered when renovating your home. Don’t forget to choose a reliable electrician before starting work.
Planning Your Home Renovation The Right Way
Typically, homeowners get excited and jump right into picking paint colors.
WRONG.
The planning stages of a renovation are what set you up for success or failure. Don’t rush this step.
Here’s how to properly plan your home renovation:
Step 1: Set Goals
Before you can decide what renovation projects to tackle, you need to ask yourself a few questions:
- What do you want to accomplish?
- What rooms do you use the most?
- How much time do you have?
- How long do you plan on living in this home?
Your answers to these questions will help you prioritize your projects.
Step 2: Know Your Priorities
Not all home renovations are created equal.
Some offer a significant return on investment, while others don’t net you squat.
High-value renovations include:
- Kitchen renovations
- Bathroom remodeling
- Electrical panel upgrades
- Energy efficient upgrades
Keep in mind your enjoyment of the home as well. You live in your house every day, so pick projects that you know you’ll love. Just balance that with the objective value added.
Step 3: Set a realistic timeline
This is where most people fail.
Too often do homeowners think they have more time to complete projects than they actually do. The average kitchen renovation takes nearly nine months of planning for only five months of actual work.
Plan ahead and give yourself lots of buffer room.
Home Renovation Pro-Tip: Never underestimate how long it will take to finish a project. And always add buffer weeks to your schedule. You’ll thank yourself later.
Electrical Installation 101: Why It Matters
Rewiring your house isn’t the most glamorous home renovation.
But hear us out, it’s important.
Upgrading appliances, installing a smart thermostat, and adding EV chargers all put a strain on old electrical systems. Old wiring and small service panels won’t be able to keep up.
Here’s what residential electrical installation typically involves:
- Bringing your electrical panel up to date
- Replacing old wiring throughout the home
- Proper grounding and other safety upgrades
- Prepping your home for smart features
- Installing dedicated circuits for major appliances
Trust us, you don’t want to hop into an electrical renovation after the fact. It ends up costing you far more in labor and time.
Safety First!
Aren’t sure if your wiring is safe? Homes built before the 1980s are most susceptible to having electrical issues. Don’t take chances with your family’s safety.
Look into having an electrical consultation as part of your overall renovation. A licensed electrician can inspect your wiring and make recommendations.
Finding The RIGHT Contractor For The Job
Allowing your loved ones pick the contractor is never a good idea.
Just kidding (kind of).
Letting friends and family pick contractors is the worst way to select a team for your renovation. Understand why before moving forward.
Here’s how to find the right contractors:
- Proper licensing and insurance
- Verified references from recent projects
- Clear communication style
- Detailed written estimates
- Realistic timeline projections
Tip: Research contractors beforehand, but always get a few bids before making your final decision. You want competing bids for comparison.
Also look for specialists when it comes to your home’s critical systems.
Plumbing, HVAC, and electrical work all require licensed specialists. General contractors should hire out these aspects of the renovation.
You want qualified and licensed contractors touching your investments.
Budgeting: How To Plan Without Going Broke
We hate to be the bearer of bad news, but renovation budgets are messy.
At best.
Renovation companies will estimate your project based on your needs. But homeowner’s consistently underestimate the cost of renovations.
Over 78% of homeowners go over budget on renovations! And 45% of homeowners exceed their budgets by at least $5k.
Yikes.
Build in buffer for unexpected costs.
How to Budget
Compare estimates from contractors with your own research. Online estimators are garbage at showing you real world prices.
Don’t forget about hidden costs either. Always include these costs:
- Permit fees
- Temporary housing if needed
- Furniture/storage costs
- Landscaping
- Miscellaneous buffer (always have buffer!)
Speaking of buffer, your budget should always include an emergency fund. 15-20% of your total budget is dedicated to surprise costs.
Don’t forget about payment schedules and contractor compensation.
Renovation Phase: Payment
Most contractors will take payment in installments.
You should never pay the full project cost upfront.
Here is an example payment schedule:
- Deposit to begin work
- Progress payments at set milestones
- Balance due upon inspection & job completion
This protects you, the homeowner, as well as the contractor.
Conclusion
Renovating your home isn’t scary if you’re prepared.
Take your time during the planning phase. Figure out what renovation projects are most important based on your family and your budget.
Remember these tips:
- Homeowners love renovating
- Plan out your renovation projects ahead of time
- Residential electrical installation upgrades are crucial
- Know who you’re hiring
- Plan your budget before starting work
And you’re ready to start renovations.
Pretty dang sure your house will become your dream home once renovations are complete.
