A recent poll by CIBC offered some sobering statistics that just go to show the importance of planning your renovation. We’ll take a look at some of the numbers, then explain how to make sure you aren’t on the negative side of them.
First, the numbers:
The survey is CIBC’s Home Renovation Poll, last done in May 2019 and in which 1,515 homeowners were quizzed. It showed:
- Almost half of respondents (49%) expected to renovate their home in the coming year, up slightly from the previous two years.
- Only one-third (32%) had a detailed budget.
- For those who completed recent renovations, 39% went over budget.
- Yet 89% of Canadians consider home renovations to be an investment.
- Millennials are most likely to put a budget in place (38%) — but they’re also most likely to break it (50%).
- 67% of homeowners prefer to renovate their home rather than sell and move.
- 8% aren’t sure how they will pay for their renovation.
- All of this speaks to the importance of planning.
So, what should you do?
Working with a pro can help get you on track and keep you on track. At Amsted, we use our six-step Proven Process to provide the roadmap to a successful renovation. Our process is simple but detailed, the product of years of experience and refinement to ensure a unique and rewarding experience for each client. We know from client feedback that following our process leads to projects completed on time and on budget, and to clients who are thrilled with the end result.
Our process is all about the planning, because it’s the key to having a successful renovation. In fact, in a blog post asking Amsted President Steve Barkhouse for his top 3 renovation tips, No. 1 is — hands down — to plan, plan, plan.
“You can’t spend enough time planning. Having no plan — or one that’s not detailed enough — is a recipe for trouble,” he says. “It’s so easy to spend too much time and money going in a wrong direction. It’s like getting in a car and not punching your destination in the GPS. How will you know the best and most efficient way to get from start to finish if you don’t have a ‘roadmap’? Your plan is your roadmap.”
Beyond planning, it’s also key to choose your renovator carefully — do lots of research and check references! — and be sure to get everything in writing. Having a signed contract that details everything to be done, the materials to be used and the payment structure is your best protection against not only shoddy work but also overspending your budget.
CIBC also offers the following helpful tips:
- Be clear about what will (and won’t) be part of your renovation.
- Spend the time to research all your costs up front.
- Know the difference between what you’re willing to spend vs. what you’re able to spend.
- Speak to a financial advisor about how to best finance your renovation and consider any tax incentives available.
- If borrowing, opt for a low-cost borrowing option like a secured line of credit, and make a plan to pay it off quickly by automating your payments.
If you’re ready to discuss your renovation plans, send us an email!