Planning for a Successful Remodel

RRS Design + Build, LLC

Show of Hands How many have completed a remodel? Using a contractor? Good experience? Lived in house while renovation was going

on?

RRS Design + Build Award Winning Design Build Firm Licensed General Contractor (CA) Hands-on Contractor Insured

Set your SMART goal

Understand potential obstacles

Craft your vision

Contractor vs. DIY

Expect to kiss some frogs

Survive & Thrive

Show off your

success

Set your SMART goal

Understand potential obstacles

Craft your vision

Contractor vs. DIY

Expect to kiss some frogs

Survive & Thrive

Show off your

success

Setting a “SMART” Goal Why are you doing this project? What will happen if you don’t do it?

Do you need to move if you can’t do an addition?

What are you trying to achieve? Function/Beauty Add Equity “Slow Flip” Investment Flip

Goals Should Be:SpecificMeasurableAchievableRelevantTime-Bound

Set your SMART goal

Understand potential obstacles

Craft your vision

Contractor vs. DIY

Expect to kiss some frogs

Survive & Thrive

Show off your

success

Understand Potential Obstacles

Restrictions McMansion Historical Districts Zoning Restrictions Deed Restrictions/HOAs Tree Ordinance Cost Time

The “B” Word

The Fear: Sharing your budget with your contractor means that they will give you a number at or over that amount.

The Reality: The labor, scope and finishes are going to drive a certain price regardless of who bids/completes the project. Due to inexperience, homeowners often under estimate how much their vision will really cost.

Maximum amount you feel comfortable spending x .9

= Max Planned Investment(This leaves a 10% buffer for the unexpected.)

Max amount you feel comfortable spendingx .8

= Low end of your investment range

Communicate this range to your contractor.

Back into your budget

ExampleYou want to do an addition.

The maximum you have to spend is:

$200,000

$200K x .9 = $180K (max planned investment)This includes a $20K buffer for the unexpected.

$200K x .8 = $160K (low end of planned investment range)

Your investment range that you communicate to your contractor is:

$160K-$180K

Financing the ProjectSome Options Include: Savings Home Improvement/Construction Loan Home Equity Line of Credit Home Equity Loan 401K loan Credit Cards Borrow from family Hard money loan

Consult with your financial advisor, mortgage broker and/or accountant to determine the best strategy for you.

Depends in part on your exit strategy/final goal for the project.

Set your SMART goal

Understand potential obstacles

Craft your vision

Contractor vs. DIY

Expect to kiss some frogs

Survive & Thrive

Show off your

success

Craft Your Vision Do this AFTER you have some idea of what

you are getting into. Visualization Exercise

What does it look like? How will you use it? What words describe the space? Is it a private retreat or place to entertain? Inspiration items/feature walls to build a room

around? Colors? Sounds? Textures? Style?

Commit it to Paper Brainstormed items from visualization exercise Needs/Wants List Investment range Plan a budget early for finishes and fixtures Materials Lists - Keep/Reuse, Donate, Reclaim, Buy

Champagne Taste, Beer Budget Go back to your vision exercise Look at your needs vs. wants list Evaluate your skills Consider how much time you have to

commit to the project Where are you willing to compromise

(time, cost, or quality)?

Set your SMART goal

Understand potential obstacles

Craft your vision

Contractor vs. DIY

Expect to kiss some frogs

Survive & Thrive

Show off your

success

ComparisonFactor Homeowner ContractorExperience/Knowledge Limited experience Expert in building

Tools Limited and/or lesser quality tools

Professional Grade Tools

Discounts No contractor discount

Contractor discounts

Contacts - Labor Few contacts Large “Rolodex” of contacts. Lots of experience with all trades

Contacts – Suppliers Some vendors will not work directly with homeowners

Relationships with specialty suppliers; Access to better products, service, & prices

Scheduling order of trades Little to no experience

Experienced

Negotiating costs One and done Volume discounts

Identifying workmanship issues

Limited building knowledge

Expert building knowledge

Correcting workmanship issues

One and done Established relationships and leverage of future work

What is your time worth?Example: Painting

How much would you spend in supplies? How many hours would it take? What is the hourly rate you are paying yourself to

paint? What else could you do in those hours of your life? Do you really enjoy it? Is the finished product as good as a professionals? Will you have to eventually pay a professional to

fix what you tried to do on your own? Is it really worth it?

Do you know the right order?

InsulationSidingTrimFoundationWindowsPaintingPlumbing Rough-InInspectionsPlumbing FixturesDoors

TileElectrical FixturesHVACDemoHardwareFlooringLandscapingDesign PlansRoofDrywall

FramingCabinetsBidsElectrical Rough-InPermits

That Home and Garden Channel The truth, the whole truth and nothing but the

truth: Its about entertainment Time, cost, quality Not showing ALL costs Can’t do it in 1 hour or less Great for inspiration & motivation! It doesn’t REALLY show you how to do a project.

Set your SMART goal

Understand potential obstacles

Craft your vision

Contractor vs. DIY

Expect to kiss some frogs

Survive & Thrive

Show off your

success

Speed Dating Talk to Many, Date a Few, Marry One Locating Contractors for Consideration:

Word of Mouth NARI, HBA, other associations or certification

programs Home Shows Home Tours Online Searches Advertisements

Process Steps Goal Financing plan Vision Design Contract Design Plan Bidder Selection Bid Construction Contract Permits Construction Punch List Enjoy It/Show It Off

Set your SMART goal

Understand potential obstacles

Craft your vision

Contractor vs. DIY

Expect to kiss some frogs

Survive & Thrive

Show off your

success

Emotions / Communication Its not if problems will come up, its when.

Therefore its how the problems are handled that makes all the difference.

Collaborative attitude and continued focus on the positive is key for everyone involved.

Emotional RollercoasterO

ver

It

Exc

ited

Project Start Project Finish

Mood

Time

Set your SMART goal

Understand potential obstacles

Craft your vision

Contractor vs. DIY

Expect to kiss some frogs

Survive & Thrive

Show off your

success

Show off your Success! Enjoy your new space and take pride in what

you have created! Throw a party for friends to see your

renovation! Share pictures of your renovation on Facebook,

Houzz, Pinterest, HGTV website, etc. If you used a contractor you may even:

Be on a home tour! See your project featured in ads and marketing! Find out that your project was award winning!

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