Smart Tips For Renovating
Smart Tips for Renovating
When it comes to the renovation aspect of your project, the name of the game is cost reduction. The less you spend to get all of those changes out of the way, the more profit you’ll make once you decide it’s time to put your house up for sale.
Here are a few more money-saving strategies you can enact to help stay within or below budget without having to sacrifice the quality of your renovation.
Buy Power Tools
If you’re planning to go big with DIY, then you might be better off buying power tools instead of renting them. Sure, it might seem more expensive now, but they’ll be with you for as long as they’re working. So you can offset their cost over several flips, not just the one you’re working on right now.
Other than the contents of your standard toolbox, you should want to invest in a circular saw, reciprocating saw, nail gun, sander, drill, heat gun, and perhaps even a power washer to clean out decking and siding. Make sure you don’t skimp out on their quality as well – the better the tools you buy, the longer they’ll last in your care.
Ask for Remnant Materials
Visit your local construction supply shop and you might be able to get your hands-on discounted items by simply asking what specials they have. Some buyers can be particularly detail-oriented when it comes to their purchases, so materials that have even the slightest dings, cracks, or imperfections often get sent back and replaced.
Stores keep these items in the back and hold them off until sale season, but you can get your hands-on them any time of the year by simply asking if they have any. These materials can be great for small projects, and a lot of these lightly used items can pass off as brand-new as long as you know how to mitigate their damages.
Weigh the Importance of Each Room
Did you know that the kitchen, master bathroom, and master bedroom are respectively the most important parts of a home for most buyers? These rooms have to have the best quality finishes, and drive prospects to their decision based on the appeal that each room offers.
That said, you can assume that the other rooms – bedrooms, living room, dining room, and other areas in the space – are of less importance and simply need to be clean and livable compared to the primary rooms of interest.
What this means for you is that you can cut back on costs by investing in premium materials for the kitchen, master bedroom, and bathroom. For other, less important rooms in the house, consider shelling out on builders-grade materials. These are much more affordable and can hold up fairly well if they’re maintained properly, so they can work for most markets.
Whatever the task, make sure to check out the freelance market since there can be some pretty impressive untapped talent there. These professionals work solo and often charge their rate, making them much more affordable than hiring through agencies and construction companies.
Remember, large construction firms have equally large overhead costs. The cost of rent, utilities, admin workers, insurance, trucks, and other monthlies can mean that they have to weigh down their fees to meet all of their expenses while making a profit. So while they can provide you with all the services you need in one go, they can also sap your wallet of all its contents at the same time.
What you need to watch out for though when hiring freelancers is their insurance. Make sure they have coverage that pays out for accidental injury. Otherwise, you might have to deal with those costs as well in case they end up hurting themselves while working on your property.
A lot of construction supply shops out there are trying to keep it competitive, so some of them will offer you a free design consultation if you end up purchasing a specific amount of product from them. So before you head out to the store, make sure you’ve got an all-inclusive list of all the things you need to purchase so you can meet that quota and get the free consult.
If you can have an in-store designer come to your property for free to help you with the plan, you might not need to hire an architect (win!) which helps reduce your expenses even more.
Choose One Shop and Stick to It
One thing that holds for construction is that you won’t always be able to purchase everything you need in one trip. Things will come up and changes will be made to the initial plan, requiring that you seek more material when the project is underway.
That said, you should make sure that you’ve settled on one specific construction supply shop where you intend to purchase all the materials as you move through the renovation process. Scan the available retailers in your area and ask them for rewards and loyalty programs they might have to get a better understanding of where you can get the best value for your money.
Some construction supply shops might also team up with specific financial institutions like banks so that you can get special rebates if you use your credit card to make a purchase. If you’re sure you can make those payments in full once your statement comes in the mail, then you can enjoy lots of impressive deals and promotions that aren’t available through any other payment option or shop.
Ask About Overstocked Material
Storage is a powerful retail tool that most shops want to maximize. So you can be sure that construction supply stores will do anything to try to clear out storage space and make room for new, more profitable items.
When you search through the store for the items you need, approach a clerk and ask if they have any overstock materials of similar quality. They’d likely be happy to provide you a few options, since overstock and outdated items often eat up a lot of storage space, making it hard to take inventories and to stock up on items that are in demand.
As you might have guessed it, overstock items usually sell at a fraction of their original cost, so they do weigh a whole lot less on your budget without really getting stingy in terms of quality.
Establishing the Cost of Renovation
What’s the point of all this saving if you have no idea as to the actual, measurable limits that you need to observe? Establishing the actual cost of renovation should happen before you get started on anything because it all factors in to the profit you’ll make at the end of the endeavor. If you don’t call the cost before beginning repairs, then you might find your profit to be much smaller once you make your sale.
The cost of renovations change from property to property because each house needs different repairs and changes..
There are more accurate ways to come up with an estimate though. And this involves familiarizing yourself with the cost of materials at your local construction supply shop. Pay a visit to your chosen establishment and bring a pen and paper. List down all the materials you think you’d need to rehab a property and get both high and low costs based on the prices you see. Take this information home and organize it in a spreadsheet so you can easily access the details whenever you need them.
Next, go around and ask a bunch of contractors how much they charge for so and so. If you need a painting contractor, ask what he charges. The same goes for plumbers, exterminators, tiling, roofing, window, and other subcontractors you might need to help with your property. Get a bid from each one by outlining the kind of work you need done, and compare their prices across the board. Also make sure to state that you’re looking for labor only prices, and that you will be the one supplying all the materials.
Now that you have all of this information, you might be able to come up with estimates for the different repairs you need. Keep in mind that the estimate you get out of this method will still be highly speculative, and it may change depending on whether you choose more expensive materials and labor. You should also factor in the cost of permits and other fees when calculating your renovation cost. Sure, there’s no way you can get the numbers for sure, but doing this can be much more realistic than simply assuming all the repairs would cost 10% of your investment’s price at purchase.
How to Stay on Schedule
Aside from the actual expense associated with the hires, labor, and materials of the renovation itself, you also need to remember that time will have a large impact on your profit. The longer you hold on to a house, the longer you’ll have to pay for its expenses. If you hold on it for too long, you might find that all the monthly payments you made completely offset your profit or leave you at a loss.
So making sure that the renovations run smoothly and according to schedule is an important facet of securing your profit and guaranteeing a fast flip.
Here are a few money-saving strategies you can enact to help stay within or below budget without having to sacrifice the quality of your renovation.