Major renovation mistakes
Mistake 1: Not researching
Many renovators base their property price research on causal searches on real estate websites. They see that similar homes in their area are selling for good prices, but they fail to take into account that different streets within suburbs can have very different price thresholds.
Neighbouring homes can have an effect on your final sale price, especially if they have very poor street appeal. Always think about your intended market and the demographics within the local area.
Mistake 2: Underestimating costs
One of the biggest mistakes many renovators make is underestimating their project costs. Getting quotes on the cost of building materials is a start.
But have you factored in architect’s fees, local council fees, labour costs, professional fees, the cost of unexpected delays, additional contingency costs for problems found during renovations, GST and other taxes? Most people don’t think about these elements, which can cause them to blow out their budget.
Mistake 3: DIY projects
While DIY projects can be a good cost-cutting tactic, it’s important to remember that there are some tasks that are best left to the professionals. If you undertake DIY projects yourself and aren’t competent, you may have to spend money fixing faulty work further down the track.
Mistake 4: Not sticking to a budget
A shortage of funds may mean that you’re unable to finish the project. If your renovation isn’t completed you won’t be able to sell the property at the profit you initially anticipated. While it’s tempting to opt for luxurious fittings or finishes, try to stay within the parameters of your budget.
Mistake 5: Renovating the wrong elements
A shortage of funds may mean that you’re unable to finish the project. If your renovation isn’t completed you won’t be able to sell the property at the profit you initially anticipated. While it’s tempting to opt for luxurious fittings or finishes, try to stay within the parameters of your budget.
Mistake 6: Underestimating the disruption factor
While the thought of a modern and completed renovation is exhilarating, you need to carefully consider the reality of the project in process. A large-scale renovation can be noisy and disruptive to family life.
Mistake 7: Selecting a builder based on price alone
While it is always tempting to go for the lowest quoted price, you need to consider the implications of doing so. Does the builder have the required experience? Will they provide a warranty on the project?