A behaviour you must avoid and discuss a serious risk that all Homeowners face when planning and executing Home Makeover Projects. PLUS, I share some ideas that can add real value to your Home.
If you throw a teargas canister into a crowded party, you're guaranteed to clear the room as everyone tries to run for cover. Hopefully you won't experience or need tear gas on your Home Makeover project.
But, there is a thing that Homeowners do all the time on Home Makeover projects and it makes just about as much mess as teargas and has about the same effect on project teams. In fact, this one action ... which is often repeated over and over again in the worst cases, is responsible for uncontrollable cost increases and time overruns. And the problem is ... most Homeowners don't realise the damage they are doing. To themselves. It's just like shooting yourself in the foot ... deliberately !!
Construction crew have feelings, emotions, tough lives and family struggles they're dealing with. They're typically juggling multiple projects at any one time, battling to keep a variety of clients satisfied. Just because we employ them doesn't mean they can't be wounded. If you treat them with disrespect or fail to value their contribution, their morale will suffer, their commitment to making the extra effort and their willingness to look after your interests, will quickly fade.
Doing anything that routinely ignores the humanity of your site crews - whoever is their actual employer. As the client, the Homeowner is everyone's ultimate boss. And nothing crushes morale more than making changes to work scope, specifications, layouts, dimensions. And doing it over and over again, is the worst.
Constantly making changes when contractors are on site , executing your project, crushes morale, breaks momentum, disrupts progress and results in a significant reduction in their engagement with your project.
Let me explain how this plays out. But first, a bit of background insight might help you to grasp why this is so damaging.
A contractor is appointed to carry out a series of tasks on a project. Typically they have been selected due to their competence but also because their quote is competitive. And it's almost always linked to a fixed timescale.
This means, there's not much "fat" ... or profit ... in the game. And there's seldom adequate time ... certainly none to spare. So, a crucial way contractors earn their money, is to get the job done, quickly and efficiently, so they can move on to the next project to do it all over again. Rinse and repeat, as quickly and painlessly as possible.
And so this is what goes down ... imagine you're executing a kitchen remodelling project. You've appointed various contractors to remove old millwork, to supply new cupboards and counters, to install new counter tops as well as carrying out wall tiling along with some minor electrical and plumbing changes to suit the new arrangement.
By Day 4, the old kitchen cupboards are gone, the new counters are installed and the electrician and plumber are expected on site next day for rough work or first fix of those installations.
The Homeowner, that's you, arrives on site late afternoon to check out progress. You wander around the newly formed spaces and realise "Shoot !! The gap between the new island unit and the refrigerator is too wide and that spoils the space for the adjacent dining table." So, you discuss this with the site manager or foreman and ask him to get his crews to move the counter over 6 inches.
It probably seems like a small change to you. After all, 6" isn't too far, right ? How difficult can that really be ? And the thing is, is not the distance that's the problem.
What you've done, even unintentionally, is set off a tear gas canister which is now hissing dangerously. That "small" change means the millworkers have to return to site to move the unit. Which is a problem because they're due on another site the next day. And now the electrician and plumber both have to be delayed until probably at least the day after.
Making the change late in the afternoon, means they will need to redeploy to another site very quickly or they'll be sitting on their hands the next day waiting for the island unit to be moved. Even a small rock in a smallish pond can cause some big ripples. Some of the crew may lose money. Their lives will definitely experience some disruption. Other Clients may end up being delayed with other unpleasant consequences. The ripples spread quickly across the surface of their pond.
You may well be thinking “This is nothing."
Well, it is and it isn't. The first time it happens, the crew probably just suck it in and make the change. They'll mutter about it. But they'll get over it.
But when, just two days later and you're back on site watching them fit that pale grey, stone countertop you've never been entirely convinced about and you suddenly realise it's definitely wrong - especially now you see it next to the new wood flooring - the wheels really start to come off. You tell them, "Sorry guys. We need to find a different countertop." That change will end up taking three weeks or even longer to order, measure, template, manufacture, bring to site and fit.
More delays. More disruption. Now the ripples are more like waves. Make any more changes and you'll be facing a tsunami.
You will have a seriously demoralised workforce. Some of the crew may be able to charge you for their extra time, return visits, out of sequence working but others just have to live with it. And getting paid still won't solve all of the knock-on problems you've just created for them. So they won't be happy. And some may well walk out. They may simply not be making enough profit from your project to make accepting the disruption and maybe losing money elsewhere worthwhile.
Be aware of the impact making changes has on your construction team. Keep changes to a minimum. And when they are essential, recognise the negative effect on those working for you. Address this directly. Acknowledge what's happening. Ask if there is anything you can do to support them - which may mean paying additional charges. And be grateful, thanking them for the work they have done and expressing your appreciation, particularly letting them know you are aware these changes are having on them. Gratitude and appreciation, expressed genuinely, have a powerful mitigating effect. The return on investment is huge - much more than the cost, which is nothing.
Over capitalising simply means spending more on your property than you can recover if you sell it. So, if you paid $400,000 to buy the property and then spent another $ 250,000 on remodelling, your investment would total $ 650,000. This becomes a problem if the maximum you can sell the improved property for, is just $ 550,000. You would effectively lose $ 100,000.
It's worth pointing out that property values generally increase over the medium to long term - and in super-heated markets, even in the short term.
If you plan to hold on to the property you are renovating, then over-spending may be offset by property values rising over time. Of course, crashes like the global financial crisis are hard to predict, so you have to accept that selling prices could drop - but this could happen to you even if you hadn't done anything to the property. It is sensible to at least consider what might happen if you were forced to sell the property in a hurry and well before your intended timing. If you had over capitalised, would losing money be a problem for you.
Wise homeowners need to think like investors. When planning any home makeover, try to focus on work scope that is likely to add value to your property. But you need to recognise that some things you may do, while being fantastic for improving your family quality of life and enjoyment in the property, don't move the needle beyond just recovering your investment - so the property does increase in value but only by the amount you have invested. In situations like this, while they are cost-to-value neutral and not profitable, there may still be positive benefits which might justify your investment.
Unless you have done something actually unwise, you will almost certainly have improved kerb appeal - which means improving the likelihood someone will want to buy your property. The property might sell more quickly. And it might be easier to get offers close to or even above your asking price.
There are a number of factors that influence property values. Location is usually the most important - like being near a sought after school or close to a train station that gives access to public transport. Next, the amenities of the property - things like floor area, number of bedrooms, number of bathrooms, entertaining areas and so on.
And all of these factors will vary considerably based on where you live in the world, where you live in your country and even which city or town you live in.
Do your own research. Consulting local realtors and estate agents, who regularly operate in the location where you live or are planning to invest in property, is essential. Most property agents will be willing to provide free valuations or sales appraisals. When they visit your property, ask them if they have any ideas about what might increase the value of the property. They are usually willing to share their expertise - in the hope that when you come to sell the property, you will appoint them to act on your behalf.
Here is a list of home makeover alternatives to consider - but please note these are simply ideas based on what other property owners have done in their locations that have resulted in increasing property values at various times in the past. Do not attempt or pursue any of these ideas without seeking and receiving reliable, professional advice from experts in property who operate locally to you.
And here's a warning to be mindful of ... in any home makeover you may consider, be wary of making the work overly personal. Your favourite deep purple may not impress buyers when they discover the entire house has been coated in it.
Anything that reduces its kerb appeal and makes a property harder to sell, should be avoided. Property professionals often say that buyers make a decision within minutes of entering a property. If someone walks into your home and realises they will have to spend thousands to redecorate or reconfigure the property, they are likely to walk away - unless the asking price is way below market and takes those rectification works into account. Which means you'll be losing money. But even when prices have been adjusted, lots of buyers simply don't want to be forced into a ton of work when they move in.
So here they are ... in no particular order.
Improving the connectivity of inside and outside spaces - for example replacing a window or older style doors from internal entertaining spaces like a kitchen, dining room or living room with sliding or bi-fold doors, including increasing opening sizes to maximise light.
Convert under-utilised loft or attic space into living accommodation. Depending on the works involved and where you live, the construction cost of a loft conversion may be as much as half that of an extension.
Taking into account the growing relevance of green energy for the future, adding photovoltaic solar panels for generating electricity or thermal panels for heating, can be beneficial both while you live there and when you sell.
Decorating is typically beneficial, especially in older, tired, properties. At the very least it improves kerb appeal but only when the colours are in vogue at the time of selling and not exotic. This could include replacing wall tiling, damaged plaster, repairing superficial cracking to walls and ceilings, re-decorating peeling paintwork, and replacing dirty, threadbare carpets.
Replacing old-style windows - particularly to improve energy efficiency - like replacing old single glazed windows with double glazed units.
Remodelling existing layouts to improve circulation and incorporating wasted space to increase overall room sizes. An example might be removing or reconfiguring internal walls around old style separate dining rooms and kitchens to create new, open-plan, kitchen diners. Removing a wall to lose a corridor, has the effect of adding the corridor space to the newly enlarged adjacent room. Improving sight-lines in living spaces by forming fewer, more spacious rooms makes houses seem larger.
Updating and reconfiguring key spaces like kitchens and bathrooms can be effective. Particularly where the scope includes modernising - like replacing an old, unsightly bathtub with a shower, perhaps including a rainfall showerhead. Or, introducing a dishwasher in older properties. And you don't have to go crazy - simple enhancements like replacing floor tiling or light fittings can have a positive impact. Installing modern style taps and sanitaryware - like toilets and wash hand basins - also prove popular.
One of the most valuable amenity spaces are bedrooms. Can you find ways to add bedrooms ? Sub-dividing larger rooms, reconfiguring existing layouts, again potentially incorporating under utilised spaces like corridors, is often most cost effective. But you may also consider loft or basement conversions and even additions and extensions.
Adding bathrooms, especially en-suite to master or principal bedrooms are also often sought after features.
A variety of relatively minor projects may also enhance overall appeal without major works and that can be carried out on a phased basis as you can afford them. These could include replacing floor tiling and carpeting, adding wood floors, replacing and upgrading light fittings, creating additional storage and utility spaces - like a separate laundry ... even if small. Extremely simple activities, like de-cluttering, styling furniture and accessories - lamps, rugs, throws and colour co-ordinating ornaments, can be powerful as well as fun to do. And it doesn't all have to be done at once.
And finally, consider whether or not adding a home office or even garden office would increase the desirability of your property. This is particularly relevant as we emerge from the Covid Pandemic, when many homeowners have discovered it is both possible and beneficial to work from home either full or part-time. And employers too are recognising that employees can be productive - even more productive - working in their home environments.
Try to put yourself in the shoes of future buyers of your property. Think how you think when you look at a property. Think about what puts you off. Then look at your own property through buyers’ eyes. Replace that tatty front door, change the curtains or even just have them cleaned. Little tweaks can have as much impact as some more significant projects.
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