After a lot of difficult and time consuming effort, we managed to wrap up the renovation project. This was well beyond a lipstick type house flip as shown on HGTV where some photogenic hosts are able to perform renovation miracles with a tiny budget. Somehow those TV couples seem able to hire trades who like to work for free ands shop at suppliers where material costs are a fraction of what you might purchase at your local hardware store.
Some lessons we’ve been able to draw from this project include the following:
While my speciality remains new building, which I prefer over old homes, renovations are possible because the trades we use have a lot of renovation experience, and at some stage of the project it just becomes routine construction, and we can do that. Many of the same managerial and organizational skills of the inner city home builder translate well to renovation.
Renovations are much cheaper and quicker than home building, thus the attraction to this type of work. After the endless marathon of permitting, designing, and struggle to get big projects launched, a renovation is a modest outlay of resources (1/3 to 1/2 of a typical new build budget).
Changing the layout was a powerful and cost effective way to transform the dated living rooms on the old bungalow, and restoring what we could, such as the hardwood floor, made a huge difference for a small expense.
Remaining in control of the deal, by being in control of the realtor/buyer is essential. You just cannot allow yourself to be operating at the whim of a client who hasn’t actually paid you yet. The endless barrage of wants/demands/requests/changes is just not tenable for the budget or schedule of the renovator. As long as you are the owner of the building, you make the decisions that suit your business, and any potential client can choose to buy it when it is complete, or not. Entering into a pre-sale arrangement of a 60 year old house may lead to a false expectation that not only are you changing every single item on the build, you are going to be delivering a new product. The impossible standards of this type of client can quickly sour relations.
Transforming a date and horrible old bungalow into something refreshing and new is quite possible on a budget, provided you have the right knowledge and contacts. Since most people lack the fundamental skills needed, I’d advise they avoid this scale of a build. Too much risk!