Remodeling your home can seem like a daunting task. As a homeowner, you likely have a lot of questions about where to start, what projects make the most sense, and how to get the best results on a budget. I’ve been helping homeowners remodel and renovate their homes and spaces for over 15 years, so I want to share my pro tips to help guide you through the process smoothly.
We will go over the three most important things to keep in mind during critical stages of your home remodeling journey and a few bonus sections focused on providing a bigger picture. At the end of this post I'll provide a checklist the have used both for myself professionally and shared with many clients and family members. If I didnt perform the work on my own home I would feel confident using the checklist as a way to stay on track and ensure a smooth process, start to finish.
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Choosing Your Remodeling Projects
When taking on a home remodel or renovation, it’s important to carefully consider which projects will give you the best return on investment (ROI) on you home improvement project in 2023. Remember, while ROI is primarily financial in nature, it's important to consider the functionalilty and the value a project adds to you daily quality of life.
For example: you're less likely to build a tennis court in the backyard before a laundry room or updating an old bathroom/kicthen.
Calculating the cash value when it comes quality of life home upgrades isn't easy. Since that might lean a little more on the subjective side (still worth considering), we will start with some something between the two.
I'll give my list, back by my renovations experience and we will compare it to data pulled from 2023 on the highest average returns home owners saw on their home renovations and remodeling projects.
PRO TIP:
Homeowners and young professionals out there, feel free to write down a quick list of your own. Give 3 short reason for each choice you make. Try to pick a reason from these 3 categories.
- Financial Gain: This would the potential for a project to increase the value of your home.
- Personal Gain: This one would apply to the quality of life upgrades the bathroom oasis or the kicthen storage space and counter space that makes your life better each day.
- Enviornmental Gain: These kind of home improvements reduce stress on the enviornment and impact the way energy consumption impacts your wallet.
I try to get 2 out of 3 for a project to be safe. 3 out of 3 and you know youve got a real winner. Lets move on and ill share my list so you can see how you align with it and the data! This will help you home owners get a good idea of how important this step is.. and how easy it is when you start thinking about it.
( My list below)
Kitchen and Bathroom Remodels
Upgrading your kitchen or bathrooms can deliver one of the highest ROIs of any home renovation project. Since these tend to be such extensive and expensive reno's home owners will often put off these projects off.
This can leave alot of money on the table as a home owner, if you sell your home before updating the kitchen or bathrooms. Pair this with the added excitement and functionality that can come with a well planned and budget concious luxury kitchen remodel or a trendy bathroom renovation, it's alomost silly not to consider these two types of projects at the top of the list.
The daily use of these spaces by members of the household and knowing even a minor kitchen remodel involving new cabinetry, countertops, and flooring can recoup over 70% of your investment (on bathrooms as much as 65%), well you may agree with me considering both aspect.
Some specific things to focus on include:
- Installation of luxury features like granite countertops or custom tile work
- Improving layouts and storage with smart organizational tools
- Upgrading fixtures and finishes for a contemporary style
- If your'e selling the home, you may consider universal aesthetics
Living and Family Room Remodels
Remodeling your living room, family room and other high-traffic communal areas also adds significant value. This may be seen by some as lower ROI, since the home value isnt increased significantly. However, my clients are always looking for ways to make these spaces both stylish and functional. For this reason I have this second on my list.
Some top renovations include:
- Opening up floor plans for a more modern, open concept
- Addition of custom entertainment centers or built-in shelving
- Installation of energy-efficient recessed lighting
- Refinishing hardwood floors
- Painting or minor reconfigurations to match current interior design trends
Exterior and Curb Appeal Projects
Don’t underestimate the power of improving your home’s exterior aesthetic. Enhancing curb appeal can potentially boost resale value by over 15%.
Backed up by slightly lower project costs and quick, good looking, no mess exterior focused updates these ROIs scale up quickly. Here are some of my favorite projects for exterior home investments.
Some exterior upgrades I recommend are:
- Siding replacement with materials like brick or stone
- Door replacement with modern styles that complement the home's look
- Exterior painting in an attractive, modern color scheme
- Landscaping additions like gardens, lighting or patios
Eco-Friendly and Energy Efficient Upgrades
Green upgrades not only help the environment, they can significantly reduce your utility bills. With the green movement or not, it can't be the huge value offered with hitting the hat trick.
High ROI, functional quality of life upgrades, and finish of with enviornmently freindly? These types of projects are your best bet when investing into your home. I love nature, so maybe I'm a little biased here, but lets walk through just a few benifits.
Energy star efficient upgrades work for you in two ways. They lower you energy bills and that saves you money over time AND adds value to your home, all while reducing the enviornmental impact of energy consumption.
Smart renovations in this area include:
- Replacing HVAC systems with higher efficiency models
- Adding extra insulation in walls, ceilings and attics
- Installing solar panels or other renewable energy systems
- Replacing windows and doors with ENERGY STAR rated options
- Upgrading to programmable, smart thermostats
Finding The Balance Between Comfort & Cost
I've put a good amount of thought into this and any contractor worth their salt should. Considering your personal home improvement needs and balancing those against your budget and ROI potential, the current design trends, and contractor feasibility is important. The difference between a good contractor and a great contractor can be little things like listening to your ideas and helping to adjust expectations and being approachable enough that youre able to express what is most important to you as a home owner.
Bonus: Bundling Projects For Pricing & Convenience
Another great choice is to perform an "air seal" test on your home. Through modern advanced tools and measurment devices a small team can perform and seal up all the major drafts and air loss in a home sometimes in just a single day!
The test can also point to leaky windows, doors, ductwork, or even suggest when your HVAC system may be going bad. With the cost of new high efficiency units becoming reasonable again, and the incredible performance of these systems, 2024 might be the best year for and HVAC upgrade. Bundle your new unit with an air seal test, duct seal & cleaning, and a smart thermostat you'll have a match made in ROI heaven.
Benefits Of Bundling Similar Projects:
- Thorough look into related systems and hard to reach areas
- Some service providers and contractors will offer slight discounts for bundled work
- Convenience and clarity
- Overall efficiency
What Projects Did You Put On Your List?
In a moment we will dive into this data and see how we did, but first- What was on your list? Did we pick any of the same projects or reasoning behind them? Leave your thoughts in the comments at the end of the post! The feedback and following discourse help so much in the renovations and remodeling space. Be it professional or as a hobbyist/DIYers, the communication is what drives innovations and improvement!
So let me know your thoughts and questions.
Now moving on to the comparison with the data gathered by Zondahome.com
(be sure to check out their breakdown too)
Image & Table creation: J. Holt
Source Data From: Zondahome.com
The above infographic breaks down the most impactful ROI home improvements of 2023 leading into 2024. Seems my years in the field have paid off, as this data shows! How did you guys do?
Acknowledging The Diversity In Home Renovations
The following in-depth approach to my breakdown of the 2023 data and what I thought it missed, was for me personally totally fun to do. By no means do I think this is required from a home owner during their planning and hiring phases. I do think a smart and valuble home renovation actually involves even more than this! Over the years I have noticed when working with home owners that this is proven over and over in many ways.
This was just a way for me to explain the many paths to consider during these home remodeling and renovation planning/research stages. Such a wide range of home owners, trends, and value do exisit and just like contractors, one size does not fit all. Hopefully this in depth approach and walking though my own process with you has helped in developing a process of your own.
Another very important aspect to the home renovations process is to work with contractors you develop strong communication with. Remember to try and acknowledge this during your own initial estimates and conversations about your projects! Its important to align with your contractor on the things that are important to you as a home owner.
Disclaimer: If the technical stuff is uninteresting to you, feel free to skip ahead! Here is a anchor link to the next section if you find this part of the guide to be outside of your personal interest:
Setting a Realistic Home Remodeling Budget
Let's Peel Back The Layers On the Data
The '100%/lifetime' metric I added to the table began with dividing the total cost of a renovation project by its expected lifespan. This gave me a baseline for understanding how the value of each project might depreciate over time.
However, I soon realized that this approach needed refinement to capture the true essence of a home renovation's value. I made the choice to use that baseline for the deprecitive value over time and the "every day value" associated with a home renovation.
By slightly weighting the years after a home reno purchase, when its most exciting and impactful. I was able to create a sort of pseudo cash value in an aim to identify and then quantify the "quality of life" aspect that should be considered in data reports like these. Lets get into the graphs and what I was able came up with below.
An Analytical Approach
As we delve just slightly deeper into the world of home renovations, our analysis uses a unique method to quantify both the tangible and intangible benefits of these projects. Here’s how we approached it:
-
Cumulative Functional Value (CFV):
- Initial CFV: Set at one-fourth of the renovation's job cost.
- CFV Accumulation Rate: Accumulated at 40% of the initial rate over the renovation's lifetime.
- Yearly CFV: Increases annually by this rate multiplied by the year number.
- Cumulative CFV: The sum of these yearly values.
-
Adjusted Residual Value (ARV):
- Modeled Depreciation: Reflects the declining market value of the renovation over time.
- ARV Floor: Set at 50% of the job cost, the minimum value the ARV will reach.
- Yearly ARV: Decreases annually, reaching the floor value towards the end of the renovation's lifetime.
-
Adjusted Total Value (ATV):
- Formula: ATV = Cumulative CFV - Adjusted ARV - Job Cost.
- Representation: Shows the net value over time, balancing accruing benefits against depreciation.
Example: HVAC Electrification Conversion
- Job Cost: $17,747
- Estimated Lifetime: 20 years
Using the HVAC Electrification Conversion as an example, we calculated its CFV and ARV across a 20-year period to derive its ATV. This approach paints a realistic picture of the renovation's financial path, considering both the functional benefits and the depreciation in value.
The graph for this project not only shows the initial financial outlay but also the evolving value of the renovation in both utility and market worth over two decades.
Now that we have covered some more technical aspects to calculating value lets talk about the next steps when choosing a project.
Setting a Realistic Home
Remodeling Budget
When it comes to budgeting, I always recommend to start by making a list of remodeling projects you’d like to complete, now or in future years. Regardless of methodology or process remaining present and keyed in with your goals and the reasons behind them can help convey expectations between yourself and contractors you speak with about turning your space or project into a great experience.
With that in mind, use these tips to set realistic budgets for each one:
- Get quotes from contractors: Reach out to at least 3 reputable contractors and get itemized quotes for any projects you're considering. This gives you an accurate sense of potential costs.
- Factor in unexpected expenses: Remodeling projects often have surprises, like issues uncovered once walls are opened up. Add 10-20% to initial quotes as contingency funds.
- Focus on necessities first: It's smart to allocate more budget to essential functional projects like kitchens and bathrooms before cosmetic facelifts.
- Save over multiple years: If costs exceed current savings, make a multi-year plan to save for remodeling. Breaking projects into phases helps make major renovations affordable.
- Leverage financing options: Many homeowners utilize lending options like home equity loans or HELOCs to fund larger remodeling projects at competitive rates.
The more research you do upfront, the easier it will be to create a realistic budget and fundraising strategy. Being armed with accurate cost estimates helps avoid unexpected overages down the road. While it can be confusing to a home owner outside of the professional rehab world, many contractors will use websites like Homewyse.com (my personal favorite) to help show accurate representations of cost and timeline.
Maximizing Functionality in Remodels
Beyond just looking good visually, the most successful remodels also improve the way you use your home on a daily basis. This is something I urge each home owner to consider, take time, speak with your family and other members of the household, talking about the home improvement ideas you have with your friends, and maybe joing an online community centered around homes and home design. You'd be suprized what a simple good search would turn up. Gaining perspective insights on functionallity from people you trust can go a long way!
Here are some of my top tips to maximize functionality:
- Evaluate how you use spaces: Observe your daily habits and identify what you need more or less of in your floorplan. For example, do you need an expanded kitchen, extra storage, or a new home office?
- Improve storage: Remodels present great opportunities to add storage solutions like pantry pull-outs, closet organization systems, basement shelving, and garage cabinets.
- Upgrade lighting: Proper lighting transforms usage of living spaces. Add options like overhead fixtures, accent lighting, under-cabinet lighting, and natural light through new windows or skylights.
- Consider open concepts: Knocking down some walls can open up isolated spaces. But also keep personal spaces private. Find the right balance for your lifestyle.
- Incorporate multi-use features: Features like Murphy beds, kitchen island carts, and convertible room dividers allow you to modify spaces for different uses.
- Add universal design features: As you age, elements like grab bars, ramps, comfort height toilets and lever-style handles increase accessibility.
Think about both present and future needs and build in flexibility. Well-designed functional spaces accommodate your household’s evolving requirements.
Choosing the Right Home Remodeling Contractor
Hiring the right contractor is one of the most important decisions you’ll make for any remodeling project. We have talked a little about this so far. Now we can really dive into the fine details about hiring the perfect professional for the job.
Here are my expert tips for evaluating prospective contractors:
Look for Specialized Experience
Seek out contractors who specialize in your type of remodel, whether it’s kitchens, bathrooms, additions or exterior renovations. They should be able to show a portfolio with relevant examples of their past work. Speak with close friends and family members. I feel the social proof presents a feeling of trust, but is nothing quite like when a close freind or family member can refer an amazing professional contrator!
Verify Proper Licensing
Always verify contractors have active, up-to-date licenses and insurance. This protects you in the event of issues like property damage. Use an online license lookup tools for your state. For Northeast Ohio: Ohio Construction Industry Licensing Board (OCILB)
or give them a call at: 614-644-3493
Check Reviews and Referrals
Online reviews can give you a good sense of a contractor’s quality and service history with their past clients. Do take them with a grain of salt, as competitors sometimes post fake negative reviews and positive reviews can be left by anyone as well. Hands down referrals from family and friends can provide that added trust and confidence for peace of mind.
Interview Thoroughly
Meet with top candidates in person and ask lots of questions. Get a sense of their communication style, expertise and business practices. A good contractor-client relationship is crucial.
Here are some key questions you should consider asking:
-
Experience and Specialization
- How long have you been in the business of home remodeling?
- Do you have experience with projects similar to mine?
- What are your areas of expertise in home renovation?
-
References and Portfolio
- Can you provide references from previous clients?
- Do you have a portfolio of your past projects I can review?
-
Licenses, Insurance, and Permits
- Are you licensed for home renovation work?
- Do you carry liability insurance and workers' compensation?
- Will you obtain all the necessary permits for my project?
-
Project Details and Timelines
- How do you plan to approach my project?
- What is the projected timeline for completion?
- How are project delays handled?
-
Costs and Payment Terms
- Can you provide a detailed written estimate?
- What is included in your estimate? (Make sure it includes labor, materials, and any other expenses.)
- What is your payment schedule?
-
Subcontractors and Team
- Will you use subcontractors? If so, what are their qualifications?
- Who will supervise the project on a daily basis?
-
Communication and Project Management
- How will you communicate with me throughout the project?
- Do you use any project management tools?
-
Changes and Unexpected Challenges
- How are changes in the project scope handled?
- How do you handle unexpected challenges or additional expenses?
-
Warranty and Post-Completion Support
- Do you offer a warranty on your work?
- What kind of follow-up or post-completion support do you offer?
-
Customer Satisfaction and Feedback
- How do you ensure customer satisfaction?
- Are you open to feedback and adjustments during the project?
Compare Bids Carefully
When comparing bids, don’t just look at the bottom line cost. Also evaluate what’s included, the materials specified, timelines and payment terms. Make sure bids are bidding on the exact same scope of work.
Taking the time to run a thorough contractor search will pay off exponentially in the long run as you’ll be partnering with this professional for weeks or even months during your renovation. Most of the time any client in the past instantly clicked. Throughout 15+ years I've only taken 1 job that I just knew wouldn't work out and likewise I have only ever had a single complaint from client.
Knowing when to say: "This isn't a good fit for me" both as a home owner and a contractor is crucial to high quality and performance. As an expert in the feild and someone who is crazy about first impressions and customer service anytime the estimate or initial negotiations didn't go well I would respectfully decline and offer to refer someone I thought might be a better fit for the project. To which most home owners ended up getting great results! For the most part you will know when the numbers are within budget and the signs are all there. Ill provide by Red/Green Flags For Contractors below with your checklist and interview questionnaire. Some of these are obvious although some a bit more subtle.
Design and Style Considerations for Remodels
Along with enhancing functionality, it’s important to nail down the style and finishes that reflect your personal taste. Here are some key elements to address in your remodeling plans:
Select a Style Direction
Browse sites like Pinterest for inspiration and decide if you prefer modern, farmhouse, traditional, or eclectic styles. This helps narrow down materials and design elements. Don’t be afraid to mix-and-match ideas to create custom spaces.
Choose Cohesive Finishes
Aim for cohesiveness in your color schemes, materials and fine details. For example, use the same hardware finishes (like brushed nickel or bronze) throughout the home. Repeat flooring and paint colors in different rooms.
Lighten and Brighten
Lighter, neutral background colors make spaces feel open and airy. Then use bold accent colors in accessories, artwork or tile backsplashes to add pops of color.
Consider Timeless Over Trendy
Choosing finishes and styles with longevity prevents your new design from feeling dated quickly. But you can still integrate some current elements, like fresh paint colors or modern fixtures.
Personalize with Purpose
Add personal touches that share your story and interests, like family photos displays, antique furnishings, travel souvenirs or favorite artwork.
Preserve Architectural Character
If remodeling an older home, retain and refresh original defining features like hardwood moldings, interior doors, and built-ins. This maintains vintage architectural charm.
Eco-Friendly Remodeling Ideas
One of the biggest modern remodeling trends is the use of eco-friendly and sustainable design strategies. Here are some green tactics I love to incorporate:
- Energy-efficient equipment: Invest in ENERGY STAR certified products like windows, lighting, HVAC systems and major appliances to reduce energy use.
- Renewable energy options: Solar power systems and solar water heaters utilize free energy from the sun to power homes.
- Natural lighting: Strategically placed new windows and skylights maximize use of free natural light to brighten up interior spaces.
- Eco-friendly materials: Opt for recycled, renewable or reclaimed materials like bamboo floors, quartz countertops made with recycled glass and stone, or reclaimed wood accents.
- Water-conserving fixtures: Install low-flow toilets, faucets, showerheads and irrigation systems to reduce water usage both indoors and outdoors.
- Smart home devices: Programmable and app-connected thermostats, lights and appliances allow remote monitoring and control to minimize energy waste.
- Indoor air quality: Ensure proper bathroom and kitchen ventilation, install HEPA filters, use low VOC paints/finishes, and add plants to purify air.
Going green provides ongoing utility savings and benefits the environment. Plus eco-friendly remodels now have widespread appeal for resale value too. It's a win-win.
Remodeling your home is an exciting endeavor full of design possibilities. Define your goals, set realistic budgets and timelines, assemble the right team, and the end result can surpass your expectations. Use these tips and enjoy the process of creating your ideal living spaces tailored specially to your needs and tastes!
As promised here is your check list:
The Ultimate Home Remodeling Checklist
Or copy and paste into your own document!
For Windows Users:
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For Mac Users:
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General Tip:
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The Ultimate Home Remodeling Checklist
Pre-Project Planning
- Define goals, priorities and budget
- Research project scope and options
- Interview 3 contractors:
- Contractor 1:
- Contractor 2:
- Contractor 3:
- Compare detailed bids
- Check licenses, insurance and references
- Ask about experience, communication style and business practices
- Finalize contractor and sign contract
Preparation
- Complete permitting if required
- Order fixtures, materials and appliances
- Remove furniture and prepare construction zone
- Take before photos from all angles
During the Remodel
- Schedule subcontractors and deliveries
- Complete walkthroughs at key stages
- Review and approve any change orders
- Make payments according to contract
- Inspect work before adding finish elements
Finishing Touches
- Schedule final inspections if needed
- Complete final walkthrough
- Review warranty information
- Make final payment and sign off
- Thoroughly clean newly renovated space
Post Project
- Add furniture and decor
- Take after photos to admire transformation
- Leave online reviews for contractor
- Celebrate your beautiful new space!
Key Questions For Homeowners
During A Home Renovations Estimate
The estimate is usually considered the “first interview” when it comes to renovations and remodeling. Take the chance to ask a few questions to get a better understanding of the contractor's process and willingness to listen and meet your expectations. Creating your own or adapting these questions below can go a long way in finding the perfect fit!
Here are some key questions you should consider asking:
- Experience and Specialization
- How long have you been in the business of home remodeling?
- Do you have experience with projects similar to mine?
- What are your areas of expertise in home renovation?
- References and Portfolio
- Can you provide references from previous clients?
- Do you have a portfolio of your past projects I can review?
- Licenses, Insurance, and Permits
- Are you licensed for home renovation work?
- Do you carry liability insurance and workers' compensation?
- Will you obtain all the necessary permits for my project?
- Project Details and Timelines
- How do you plan to approach my project?
- What is the projected timeline for completion?
- How are project delays handled?
- Costs and Payment Terms
- Can you provide a detailed written estimate?
- What is included in your estimate? (Make sure it includes labor, materials, and any other expenses.)
- What is your payment schedule?
- Subcontractors and Team
- Will you use subcontractors? If so, what are their qualifications?
- Who will supervise the project on a daily basis?
- Communication and Project Management
- How will you communicate with me throughout the project?
- Do you use any project management tools?
- Changes and Unexpected Challenges
- How are changes in the project scope handled?
- How do you handle unexpected challenges or additional expenses?
- Warranty and Post-Completion Support
- Do you offer a warranty on your work?
- What kind of follow-up or post-completion support do you offer?
- Customer Satisfaction and Feedback
- How do you ensure customer satisfaction?
- Are you open to feedback and adjustments during the project?
Downloads:
Author: J. Holt
Bio: J. Holt is an experienced Renovations & Remodeling Expert with a passion for creating stunning and functional living spaces. With over 15 years of expertise in the industry, he is happy to share his top insider tips and design secrets to transform your home into a masterpiece.
Website: www.rustbeltreno.com
Contact: titanscopellc@gmail.com
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