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
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.
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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