Find the Right Contractors for Your Renovation Project

Understand the Right Renovations for Your Location

Before you can even consider looking for a contractor, you have to understand the right renovations for your location. You don’t want to make major renovations only to find local buyers who aren’t willing to cover the costs of your renovation project. You need to renovate based on the standards set by local buyers. Unnecessary changes eat into your profits and can even turn buyers off. Your real estate agent can help you understand what buyers want based on what they see in the market every day.

Your decisions can become more strategic based on data of local sales. You invest in upgrades that minimise your costs and maximise your returns. You avoid renovating based on what you would want and instead invest based on the changes the average buyer in the area wants. This is an important first step to finding the right contractor as it ensures you have a plan to share with them when you are getting quotes. It also ensures the full scope of the project is understood so they don’t underestimate how much time they need to allot for your renovation.

Ask Your Real Estate Agent for Referrals

This is important because good real estate agents create a circle of tradespeople they trust. These contractors have experience in the types of renovations that save money, never sacrifice quality, and focus on increasing the ‘sellability’ of your investment property. Your agent can also leverage their relationships to negotiate the best deals reducing your renovation costs.

Remember, every cent you pay towards your renovation project is a cent less in equity. Skilled contractors complete the work to a higher level to help grow your wealth efficiently. You’ll also face fewer issues once the project is completed as the work will be up to the high standards of buyers and their agents, and pass home inspections.

Get Quotes

Never settle on the first contractor you find. Instead, look at multiple contractors and ask for quotes on the project. First, quotes allow you to get an idea of how much your renovations actually cost. Averaging the quotes from several contractors provides a more realistic number. You can weed out the higher quotes, but also those who come in much lower. Those with high bids are wasting money somewhere, often because more goes into their own pockets. The contractors who come in much lower are cutting corners.

Renovations are only as good as their quality, and smart buyers and home inspections will reveal shoddy work. Also, often low bids are low because they fail to include all the costs associated with the work. In this case, you’re handed invoices for additional charges, so you end up paying more. Last but not least, if you are including a referral from your real estate agent you will feel confident their contractors’ prices are fair.

Base Quotes on Site Visits

Be sure the quotes provided are based on actual visits to the site. You want to walk the contractors through the home and show them the exact condition of the home. As a result, their quotes are more realistic, reducing the risk for hidden surprises once work commences.



Use Your Gut to Decide

Never underestimate your own gut instincts. If someone comes across as too slick, seems to talk down to you, skirts around questions, or just plain give you an uneasy feeling, chances are your gut is right. You need to feel you can trust your contractor. By arranging for walk-throughs at the site, you can meet the contractors and get a good feel for whether you want to work with them or not.



Make Sure the Contractor is Helpful

A good contractor asks questions and doesn’t just nod and agree with everything you say. On your walk through they should offer guidance and make suggestions about ways you can cut costs. They should also warn you when they predict challenges related to the property, permits, etc., to help meet expectations.



Understand Project Management

Many novice investors are unaware contractors expect them to project manage the renovations. This is a huge undertaking, especially if you work full-time and have a family. Since you don’t live in the home, this makes things even more difficult. Project management is a major part of renovations, and you need to ensure your contractor is comfortable taking on this role. You want to put in minimum effort yet see optimal results.

In fact, you want your money, not your personal time to be the main contribution to the renovation. If your contractor doesn’t plan the project management for you or will charge more to do so, you reduce your ROI. An experienced investment property buyer’s agent offering a full-service team brings more value to your purchase. Instead of walking away once the purchase is made, a full-service team continues to bring value by helping find the contractor and managing the project for you from start to finish. They know how to increase your property value, will hire the contractor, negotiate the best prices and then see to it that all of the work is completed on time and on budget.

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