JKM Website Blog – Considerations with Comprehensive Home Renovations

Going through a comprehensive home renovation can be a really daunting task for anyone. We’ve been doing this for each property we’ve owned; understand construction; but still find it can be a stressful situation to navigate. There are so many things that can go wrong with cost blowouts, unforeseen circumstances arising and project delays. One of these things occurring is enough to leave many wondering if the effort is worth the risk!

In our biased opinion we believe it’s worth the hassle

We may be biased, but we do believe that when done properly, renovating a home rather than purchasing it new comes with many benefits to homeowners. In our humble opinion the benefits outweigh the costs.

• You get to live in a home that suits your personality and is not a ‘cookie-cutter” white canvas that is often delivered by developers looking to meet the mass market from a design aesthetic.

• ‍You get to create real value out of your property. Especially with today’s rising house prices, undertaking a substantial renovation can allow you to purchase the worst house on the street and create tangible value in that property. Or maybe you've lived in the home for 30 years and don’t want to move. For us personally, we’ve often found that house prices have increased greater than our ability to save for the deposit. In our experience, being able to purchase a rundown property and breathe new life into the home has provided us with increased equity value in the home.
• ‍You get to decide on the finish quality of your home. As a client of a substantial home renovation, you ultimately get to sign-off the finished product. If something doesn’t meet your expectations, then the contract should be structured in a way that you can make sure the end product is what you had in mind. If you select the right general contractor, you will have a home that is built well. By that we mean that a reputable contractor knows how to construct the right-way (more on this later).

In our experience we believe that newly constructed homes built by developers (typically on-mass) tend to have on going issues well after the keys are handed over. The biggest gripe that we hear about is substantial waterleaks. The trouble with purchasing a new home is that you don’t get to see what lies underneath. Developer profits lie in quantity and speed. Two elements that can lead to corners being cut through the construction process. The biggest sign of this happening is that the building can have leak issues due to incorrect waterproofing being installed or not installed in the way specified by the manufacturer.

In this article we are going to highlight some of the things to consider when deciding to venture into a comprehensive renovation. Hopefully we can shed some light on the common pitfalls that can arise and help people navigate this rocky road with a concrete plan of action (no pun intended!)

 Key Considerations when contemplating a home renovation

 Do your due diligence

1. Get a sense of how your neighborhood will be in 5 to 10 years time - Have prices skyrocketed in neighboring communities? Have a look at future infrastructure plans (is the city extending a light-rail transit line or is a local park pegged for an upgrade)?

2. Make sure you have an adequate budget - This might sound really obvious but we would strongly recommend putting together a simple budget in excel. It doesn’t need to be professional but does need to accommodate a contingency and related costs (i.e. financing or temporary accommodation costs).

3. HOT TIP! - Talk to a general contractor before you engage the architect - You won’t be able to obtain a quote without drawings (don’t be fooled by someone who says otherwise). But a good general contractor will be able to offer advice on how best to approach the renovation. At JKM Building & Renovations, we offer free advice for people in this early stage of decision making. It provides them with some insights before they engage the architect to help the owner achieve their goals in the most price efficient way possible (more on this in a future blog).

4. Select the right architect - Selecting the right architect is key to making sure the renovation runs as seamlessly as possible. Our suggestion would be to select a local architect. A local architect typically has an indepth understanding of the local policies and a working relationship with the local authority. This is particularly important if you are looking to expand your home with an added floor or your home is located within a historic district. A local architect knows what you can achieve and the process to obtain approval within a reasonable timeframe.

Make sure it makes sense for your property and lifestyle

1. So you don’t overcapitalize with the home renovation  - Take a look at your neighborhood real estate listings to determine what renovated homes are selling for. What are the experts suggesting will happen to house prices in the future? Although nobody has a crystal ball, the experts have a pretty good grasp of future supply and demand dynamics which largely drive house prices.

2. Make sure a substantial renovation is right for your home - Similar to above, be careful not to overcapitalize on a home. Is there some unique quality to the home? Does the home have existing character that will be transformed? Is the home on a great street or near a park?

3. You consider the need to move out of the property during construction - The amount of dust created during construction is intense! Even small renovations can make living in the home a nightmare. Especially if the renovation includes a new kitchen or bathroom which will mean no cooking for a period of time. Dust prevention measures can be implemented to protect homeowners and their furniture. However, in our experience avoiding the dust (and therefore a negative impact on home life) is a nearly impossible feat. Consider options like an Airbnb (which needs to be added to the budget) or moving in with the in-laws for 6-12 months as an option.

Select the right contractor  

1. Make sure they are local - When we are meeting prospective clients, we typically will invite them to inspect a project currently under construction and visit our own home. Your own home you say! We do this to showcase the finished quality of our work and also to provide confidence to potential clients that we are local and have no intention of running off with the clients cash. At JKM Building and Renovations we focus mainly on undertaking renovations within Jersey City and Hoboken. The reason being is that we have developed a good working relationship with the local building officials. We recognize that there are so many “dodgy contractors” and stories to share that the majority of clients are hesitant to trust general contractors. Cutting through this industry mistrust is why we put ourselves personally at the front and center of our business.

2. Obtain multiple bids - We cannot emphasize this enough! However, it's really important that you know what the bid includes and excludes. There should be a high-level understanding of what is included so that you can compare “apples with apples”.

3. Be very wary of selecting the lowest bid - We understand that this is a really tempting thing to do. What we come across on a regular basis is contractors that bid a low price to a client with a strategy to implement “Change Orders” throughout the construction process. This is a really high-risk situation for homeowners that are working towards a fixed budget. At JKM Building & Renovations “change orders” are a dirty word. We price our projects all encompassing and will only issue a change order due to design changes by the client or major unforeseen issues (more on this in a future blog). Our price covers reasonable adaptations along the way. Just to be clear there is always the risk that something will be uncovered in the home that requires additional cost. One example could be the need to undertake structural repairs due to rotten structural beams. This is why it's important to factor in a contingency in your budget.

4. Ask for references - As a potential client, you are more than welcome to ask for a reference from a previous client.

5. Read the contract terms carefully - We get it, reading contracts is boring but it's really important. Make sure you understand the scope of the price, the project schedule and the contract terms. This is a substantial investment and so we suggest you set aside time to read through the fine print.

Ensure you have sufficient time to dedicate to the project

1. It’s a time consuming process selecting all of the finishes - even after selecting a trusted architect and contractor, you will still need to dedicate time to working through the design options and selecting the finishes (think everything that is visual in the home). This takes real time both working with the architect and/or visiting supplier showrooms in your neighborhood or online.

2. You need to set aside time to visit the project regularly - Yay you trust your contractor completely! That’s great to hear, but even so, we recommend that you meet onsite regularly throughout the project to make sure everyone is on the same page. A large home renovation can take somewhere between 6 - 12 months and so this is something to keep in mind.

We hope that this article eases some of your fears

We hope that this information provides some help to those considering the plunge into a home renovation. That being said, it’s important to know that problems can still arise even with the best laid plans. The key takeaway from us is selecting an experienced contractor that knows how to pivot whilst still executing the project goals. Having the confidence that the contractor can work through these things with you should help to minimize the stress.

In our next blog we are going deeper into the issues that can arise with substantial renovations and how JKM Building & Renovations has addressed these in the past. It’s important to understand that renovations are notorious for needing to adapt as you cannot truly know what lies beneath the walls until you start demolition.

If you like what you see then feel free to follow our Instagram page @jkmbuilding or check out our website at www.jkmbuildingltd.com.

All the best with your decision making!

Kate & Josh