How To Make Strategic Home Renovations

Starting any home renovation project can feel overwhelming.

Knowing how to make the most strategic home renovations is key in order to achieve the best return on your investments.

This is especially true when you have multiple projects to tackle. 

Having a strategized renovation plan in mind before starting can streamline the process and make your project a true success.

The first step in any home renovation project is to visualize your project and what you aim to achieve.

In any case, you should set your objectives and prioritize the projects that will keep you within budget while providing the most impact on your property value.

Disclaimer: Our articles are written by a Licensed or Certified Residential Appraiser. This information is meant for educational or informational purposes only, and does not support or indicate an opinion of value for your home or property, nor does it provide any type of value indication for a lender, attorney, realtor, or any other individual or entity.

Whatever steps your project may include, jot down your end goal as a way of guiding your decisions throughout the renovation process. 

The more you get into the weeds of a particular project, the more likely you are to lose sight of your main objectives.

This can lead to overspending and may hinder your ability to make important and timely decisions. 

Once you have established some goals, it’s time to prioritize which projects are most important to you. 

Consider factors like budget, timeline, and impact on your daily life when making these decisions. 

It can also be beneficial to consult with a professional, such as an interior designer, contractor, or appraiser for expert opinions and advice. 

Local real estate agents will also have a sense of what buyers are paying top dollar for right now.

Most agents will also be more than willing to discuss these things over the phone for free. 

First and foremost, take a quick inventory of any items that impact the safety of your home. 

Structural problems, safety hazards, lead paint, or similar concerns should always take priority over cosmetic upgrades or remodeling.

That new spa-like bath or fancy kitchen isn’t likely to sway buyers if other areas of the home aren’t safe to occupy.

It’s important to have a good grasp of your budget before beginning any renovation project. 

Consider how much you are willing and able to spend, and factor in potential unforeseen costs. 

You may need to hire pros for certain jobs – factor these costs in for situations that call for it. 

Other things to consider when determining your budget include the cost of materials, obtaining necessary permits, and cleanup costs.

Laying out a realistic budget in advance will help guide your decisions and prevent overspending.

Angi’s List also has a convenient list of common renovation costs which appear to be pretty accurate in comparison to the paid estimation software I use.

Angi also has a handy (and free) Budgeting Template which you can access here.

If you prefer something more in-depth, I recommend using HouzzPro’s free trial to plan out big projects.

For extra fun, you can play around with their included 3D design studio.

You can always cancel (like I did… shhh!) before incurring any costs at no risk!

Once you have an estimated budget in your mind, write it all down on paper. 

(Or on screen for you millennials who have given up on paper altogether!) 

This will help you keep track of your spending and allow you to make adjustments as needed. 

Consider breaking down your budget by room or a specific project so you can keep tabs on where your money is going. 

Leave some wiggle room for unexpected costs – they WILL arise.

Divide Your Project Into Manageable Items

Tackling your home renovation in manageable chunks is a savvy way to approach what can seem overwhelming. 

Dividing your project into smaller, bitesize pieces will simplify the process and allow for a more focused approach. 

For example, maybe start with the rooms you use the most, like the kitchen or bathroom, to maximize the impact on your daily life and keep you encouraged to keep going.

The sequence in which you tackle projects can significantly impact the timeline and budget of your renovation. 

Planning and executing tasks in a logical order will keep you on track and prevent you from re-doing work or damaging freshly completed upgrades.

When prioritizing your projects, consider the 3 S’s: safety, soundness, and security. 

These 3 factors are important – potential buyers AND your appraiser will consider these things FIRST. 

Safety refers to any potential hazards in your home, such as electrical issues, structural concerns, or the existence of lead paint or other hazardous materials.  

Soundness relates to the structural integrity of your home and includes items like a leaking roof or cracked foundation. 

Security involves features that protect your home from outside threats, like windows and doors that function and lock properly.

Once you’re sure those initial items are taken care of, you can move on to the next category.

Once you’ve checked off all items for safety, soundness, and security, it’s time to zero in on the highest-priority room.

This often comes down to a kitchen or bath – and these are a fantastic place to start.

Renovating your kitchen or bath not only gives you a great ROI but can improve your quality of life. 

Families and friends tend to gather around the kitchen. Knocking out a big priority room like this will be rewarding every day, even if it’s a cosmetic makeover vs. an extensive renovation. 

From swapping out old appliances for more efficient models to knocking down a wall for an open-concept feel, the possibilities for both lower-cost and expensive makeovers are endless.

Renovated bathrooms can also be a high priority as they are heavily used, sought after by buyers, and can contribute to your home’s overall comfort. 

As you move through various renovation projects, keep an eye out for opportunities to improve efficiency and functionality throughout the home. 

Consider adding eco-friendly fixtures, like low-flow toilets or LED lighting, to save on water and energy while upgrading the space.

Updates that improve your home’s efficiency will never go out of style. 

Pro Tip: Many home projects I see include kitchen remodels that go too far above and beyond what any potential buyer would be willing to pay back in terms of ROI. 

If you can’t afford a full high-end kitchen renovation, focus on functionality and a few quality upgrades rather than over-the-top luxury.

Unless, of course, you are planning to enjoy the luxurious, over the top kitchen yourself for years to come! If that is the case, and you can afford it, go nuts. 

But keep in mind that buyers appreciate a freshened-up and functional kitchen, even if it’s not extensively renovated within the last few years. 

Increasing functionality may include newer appliances, increased counter space, a multi-functional kitchen island with seating, upgraded surfaces, low-maintenance flooring, or built-in storage solutions that hide kitchen clutter. 

In place of a pricey bathroom renovation, consider adding shelving or updating fixtures. Incorporate inexpensive decor elements like candles or plants to create a spa-like experience.

On to your living room or great room next.

Tweaking your living room can dramatically change the entire vibe of your home. As a bonus, a living room makeover or upgrade won’t usually be as costly as a kitchen or bath renovation. 

Whether aiming for a minimalist look or a bold colorful decor style, the living room should be a welcoming canvas that expresses your unique taste.

Integrating a smart sound system, sleek, minimalist electronics, or a more open concept layout can make your space seem more modern and worthy of entertaining.

Even with minor changes, your living room can become a statement about the lifestyle you’re trying to portray to potential buyers or improve your enjoyment of the space.  

The bedroom, every homeowner’s sanctuary, shouldn’t be overlooked. Transforming this area into a cozy retreat is usually more financially feasible than an extensive kitchen or bath remodel, and can be almost as impactful. 

However, I recommend focusing on this area last. Bedrooms can be one of the less costly projects, although there are plenty of options and trends to consider. 

If you’re short on storage space in your bedroom, consider adding shelving or investing in multi-functional furniture like a bed with built-in drawers.

Painting the walls, adding an accent wall, or general de-cluttering and minimizing can make a big difference. 

Update the carpet or add area rugs – a soft underfoot feeling first thing in the morning is a nice selling point. 

Install some stylish fixtures or hang artwork to give it a modern look. 

These simple but high-impact changes can transform your bedroom into a peaceful and inviting space.

While your initial focus should be on the bigger, most used rooms first, don’t neglect smaller spaces like hallways and entryways. 

These areas may seem insignificant, but they can also make a statement if given a little TLC.

Leaving these pass through areas dated in an otherwise modern home can be a downer on the vibe you’ve created.

Adding details like upgraded trim or molding, an accent wall, or a bold pop of color with trendy wallpaper can instantly elevate a space without breaking the bank.

These small but mighty changes can make all the difference in creating a cozy and welcoming vibe to the whole home.

• Start with the essentials: Take care of any necessary repairs or maintenance, such as fixing leaks or replacing broken appliances, before moving on to more cosmetic changes.
• Focus on high-traffic areas: Prioritize rooms that are used frequently, such as the kitchen and living room, to ensure maximum enjoyment and functionality.
• Consider your budget: Consider any budget restrictions when deciding which projects to tackle first. This can help you prioritize and avoid overspending. 

If your budget is on the lower end, group tasks together to see how many smaller list items you could knock out vs. spending the entire thing on one room or project.

Now that you have your goals set, spend some time planning out the actual project. 

Project Planning steps to consider:

• Submit Applications or Permits: Depending on the scope of your project, you may need to obtain permits or submit applications before starting. This is especially important for larger renovations that may require structural changes.
• Create a timeline: Estimate how long each task will take and set tentative deadlines for yourself. This will help you stay on track and avoid unnecessary delays.
• Get quotes & negotiate:  If you plan on hiring contractors or subcontractors for any work, get quotes from multiple sources and negotiate for the best deal. Don’t be afraid to ask for references or proof of insurance.
• Hire tradespeople and sign contracts:  Once you have found preferred contractors or workers, draw up a simple contract that clearly outlines the scope of work, tentative deadlines, and payment schedules.
• Don’t forget the cleanup in your planning: Include cleanup and disposal costs in your budget. This is sometimes overlooked but can add up quickly if not properly budgeted.

No matter how well you plan, unexpected problems can arise during any renovation project. Here are some tips to help you prepare for potential issues:

• Budget for contingency costs: If you can, set aside a small portion of your budget specifically for unexpected costs or emergencies. This will help prevent any major setbacks if something goes wrong.
• Always have a backup plan in case something doesn’t go as expected. The plan could include having a backup contractor with availability, or alternative sources for materials in case of delays or issues with the original plan.

While it’s impossible to predict every problem that could arise during a renovation, below are some common issues to watch out for and tips on how to avoid them:

• Delays: These can happen due to various reasons such as materials not arriving on time, unforeseen structural issues, or even weather conditions. Factor in extra time to your timeline to account for potential delays.
• Going over budget: This can happen if you encounter unexpected issues or make changes to your original plan. Track your expenses and adjust accordingly to avoid going over budget.
• Poor communication with contractors: Miscommunication or lack of communication between you and your contractors can lead to mistakes, delays, and other problems. Maintain clear and frequent communication throughout the process to make sure you’re on the same page.
• Not obtaining necessary permits: Depending on the scope of your project, you may need to obtain permits from your local municipality. It’s a good idea to research and obtain all necessary permits before starting work to avoid potential legal issues or delays.

Renovations can be challenging and stressful, but with careful planning and preparation, you can avoid common problems and work towards a successful outcome. 

Remember to have a backup plan, stay flexible, and communicate regularly with your contractors or laborers throughout the renovation process. 

This can help you minimize stress and manage unexpected costs.

A strategic renovation plan can transform your space into a home that hits the top of the value range in your neighborhood – all while keeping your sanity in check!

Share your renovation failures and successes with me in the comments!  

Happy renovating <3