As Inflation in America Hits 41-Year High: 14 Costly Home Renovation Mistakes To Avoid According to Renovation Experts
Home renovations can be costly, time-consuming, and sometimes downright disastrous. However, it is a top trend in 2022 with the rise in home ownership and Work From Home (WFH) work style because of the pandemic.
According to a 2022 US Houzz & Home Study report by Houzz Inc., Home renovations were more widespread in 2021, with 55% of homeowners reporting activity, compared with 53% in 2020, 54% in 2019, and 54% in 2018. Homeowners spent 20% more on renovations too. The median spend in 2021 was $18,000, compared with $15,000 the prior year, when the median spend already had risen by 15%.
Furthermore, higher-budget projects (with the top 10% of spend) increased from $85,000 in 2020 to $100,000 or more in 2021. Earthweb says 80% of houses in the United States in 2022 are at least 20 years old; therefore, they require home improvements and remodeling.
If you’re planning on doing some renovations in your home this year. According to industry experts, be aware of these 14 common mistakes people make to avoid hefty dollar payout when America’s inflation is worst at a forty-one-year high.
According to the National remodeling experts:
Not Sticking to a Budget
It is vital to have a realistic idea of how much the project will cost from the outset and stick to that budget. Unexpected costs like hidden damage, permit fees, or unanticipated design changes can quickly add up and blow your budget. Be sure to factor in a buffer for unexpected costs but stay true to your original plan as much as possible.
Choosing the Lowest Cost Every Time
It’s tempting to go for cheap inputs during a home renovation project since material costs have exploded out of control.
The National Association of Home Builders says building materials prices increased 20.4% year-over-year and have risen 31.3% since January 2020 based on a Producer Price Index (PPI) report for residential construction inputs by the Bureau of Labour Statistics. Over the past five months, the index has climbed 10.6%, while the price index of services inputs to residential construction increased 3.8% in February, following a 5.1% increase in January 2021.
Choosing the cheapest option might save you money upfront but cost you more in the long run. Do your research and select materials that will last. Also, factor in the installation and labor cost when making your selections.
Buying Furniture and Home Decor Too Soon
Before buying furniture or home decor, wait until you’ve completed the major renovations; this will help you avoid having to replace furniture that gets damaged during the renovations. If you can’t wait, choose durable pieces that can withstand minor wear and tear.
Be patient when shopping for furniture and home decor. Take your time to find pieces you love that will work well with your renovated home. Also, don’t be afraid to ask for help when shopping for furniture and home decor. There are experts who can help you find the perfect pieces for your home.
Not Using the House’s Style to Their Advantage
Many people make the mistake of renovating their homes without considering the house’s existing style. Unfortunately, this can lead to several problems, including mismatched styles and even more work down the line to correct the mistakes.
Industry experts say that it’s essential to take the time to consider the style of your home before starting any renovation project to avoid making costly mistakes. By doing so, you can be sure that your renovation will enhance your home’s overall look and feel rather than detract from it.
If you’re unsure about what style your home is or how to incorporate it into your renovation plans, plenty of resources are available to help you out. Many professionals specialize in home renovations and can offer advice and assistance.
Doing your research and getting expert input before embarking on a home renovation project will help ensure that you end up with the result you’re happy with.
ArchitecturalDigest.com says:
Not Asking for References
If you’re planning on hiring someone to help with your renovation, it’s always important to ask for references. This way, you can be sure that the person or company you’re working with is reputable and has a good track record. Always make sure to get at least three references before making any decisions. GoBankingRates mentions references as one of the 12 important questions to ask before hiring a contractor.
Spending Too Much on Tech
If you’re planning to sell your home within the next few years, don’t go overboard with tech upgrades that will be outdated by the time buyers come knocking. Instead, stick to timeless features like hardwood floors or a new roof.
Making Too Many Changes
Making too many changes can often lead to cost overruns and schedule delays. To avoid this, have a clear vision for your project and stick to it. Consult with a contractor to know the actual cost implication before making any significant changes to your home.
Not Knowing Measurements
Always take measurements of your space before you start shopping for furniture or making any major purchases. Jocelyn Chiappone, interior designer and owner-principal of Digs Design Company, offers this tip: “Don’t fall in love with a 94-inch sofa when you can only fit an 84”.
Ignoring Building Codes and Working Without a Permit
Make sure to check with your local building department to find out what permits are required for your project. Working without a permit puts you at risk of being fined and voids any insurance claims should something go wrong.
So, take the time to do things right and get the necessary permits before starting your project. It may take a bit longer and cost a little more upfront, but it could save you a lot of headache (and money) in the long run.
According to Nationwide:
Installing New Appliances Last
A common mistake people make when renovating their homes is to install all new cabinets, kitchen countertops, and flooring and then realize they need all new appliances like refrigerators to match the design. It’s very costly, as buying all new appliances can add up quickly. It is best to install new kitchen appliances first and then work around them when renovating your home.
Underestimating the Safety Risks
Safety is important when doing any work around the house, even if it’s just painting a room. If you’re going to work with any power tool, it’s essential to wear the proper safety gear, such as gloves, safety glasses, and a dust mask.
Not Consulting Professionals- Architects/Designers
Architects and designers can help you avoid making expensive mistakes, help you maximize your budget, and end up with a home that looks great and functions well. So don’t try to go it alone- consult the experts!
Underestimating Psychological Stressors
Physical and emotional stress can take a toll on our bodies, minds, and relationships. Therefore, it’s important to be aware of the potential for stress when embarking on a home renovation project and to take steps to avoid it.
Here are some tips from industry experts to help you avoid stress during your next home renovation:
- Plan ahead and be realistic about the timeline of your project. Rushing to finish a project can lead to subpar work and added stress.
- Communicate with your family or roommates about the potential for noise, dust, and disruptions. Having an open and honest dialogue will help everyone prepare for and adjust to the changes.
- Set a budget for your project and stick to it. Trying to save money by cutting corners can lead to stress and frustration down the road.
- Hire a qualified contractor whom you trust. A good contractor will be able to help you navigate the challenges of a home renovation project.
Lastly,
High Interest Financing
Home improvement loans often have high interest rates, which can add up over time and cost you more in the long run.
To avoid this,
- Shop around for the best rates and terms before taking out a loan. Compare offers from multiple lenders to see who can give you the best deal.
- It would be best to consider using a home equity line of credit instead of a home improvement loan. Adam McCann at WalletHub says that a home equity line of credit has a lower interest rate and allows you to borrow against the equity in your home.
- If you’re unsure which option is right for you, talk to a financial advisor or home renovation expert. They can help you understand the pros and cons of each option and make the best decision for your situation.
Last Word
With some planning and careful consideration, you can avoid these common home renovation mistakes and save yourself time, money, and headaches in the long run.
Happy renovating!
