This happens too often.
A new renovator gets all excited to finally have their first or second home.
They have watched HGTV for 10 years and their time is finally here!
But it’s not long before……..
They over-renovate the property.
They tear down everything in the home and try to rebuild “from the ground up.”
Those are the big mistakes. A renovation budget that could have cost 25-30k ends up costing well over 50k, 60k maybe even 80k or more.
The harder-to-spot “over-renovators” are the projects with little items that add up over the cost of the entire project.
For instance, too many change-orders long after the project has started.
Or maybe too many “extra” details. This includes things like deluxe crown moldings when standard molding will do. $500-800 extra.
Or how about the bidet I saw in a first time home buyer home? Easily 2k “down the drain.” The new renovator thought it would give them an edge in selling because “Their house was the ONLY ONE with a bidet in the entire neighborhood.”
One of the fatal mistakes first time renovators make is hiring the cheapest bid. It’s almost always the worst decision.
Here is a Pro-Tip: Use the lowest “sensible” bid to get the mid-price contractor to negotiate. When people hire the lowest bid, it often results in having to do the work a second time, or worse.
Until you find your “team” of people, this can be one of the most
And it’s gotten much worse as the economy has improved. The good contractors are always booked well in advance. The Craigslist Contractor that can “start next week” should probably be avoided on your first project.
Of course, that’s just my two cents……..
…..After 20+ years of renovating homes in the DC area and beyond.
If you enjoy this renovation stuff – you ought to be with us tomorrow night at our Feb. WREIA meeting in Bethesda.
We have invited a panel of experts to have a little fun and join us at the February WREIA meeting to help answer your questions about trends on the design side and the other “meat & potato” aspects of
Whether you are looking to do your first
Come out on Monday, Feb. 25th, and hear what is working (and not working) across the DC area.
Join us and learn:
How they got started & where their rehabbing business is today
How they find their deals & quickly analyze a deal and make a buying decision
How they fund their deals
Kinds of houses they like to buy and those they try to avoid
Where to buy and where not to buy
How to set your business up for the best chance of success
Learn answers to your questions and much more!
Join us at WREIA this month and you can learn from REAL PEOPLE having REAL SUCCESS in Real Estate.
Happy February and see you soon!
John Peterson
Founder, Washington Real Estate Investors Association
Oh, and Wholesalers – bring your deals to share with WREIA Members!
