Home Renovation Archives - Non-Qualified Loan

You may not think of your garage as adding value to your home since it’s not living space, but it can help. Adding a garage adds storage space, which is of high value to many buyers. Where your home is located and the type of garage you add will determine how much value it adds to your home, but know that you’ll see some type of return on your investment.

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Why Garages Matter

You still may be wondering why a garage would add value. Let’s look at it from the buyer’s point of view. Garages can:

Provide storage space for your vehicle
Provide storage space for items you don’t need on a regular basis
Great place to conduct hobbies, like woodworking or mechanics
Serve as a ‘man cave’

The uses for the garage are literally endless. There isn’t a specific use you must use it for in order for it to affect your home’s value. Just having a garage will help increase it.

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The Type of Garage Matters

There are two types of garages you can choose – attached or detached. Typically, attached garages provide the most value. This is mostly for convenience purposes. Detached garages are harder to access, especially in areas of bad weather, but that’s not to say that they won’t add any value to your home, because they do.

Believe it or not, attached garages cost less to construct. If your property isn’t set up to accept an attached garage, however, a detached garage can add value. This is especially true if detached garages are the ‘norm’ for the area.

The Style Matters

Even though it may be tempting to construct a garage that looks nothing like your own, but suits your personal preference, you may not see the increase in value that you desire. Homebuyers love a uniform look. Choosing to make the garage look just like the rest of the home will keep your neighbors happy and your home value up.

How Much Do Garages Increase a Home’s Value?

How much of a return on your investment you’ll see when adding a garage depends on the area. Do you live in an area where parking is a hot commodity? Maybe it’s hard to find street parking in your neighborhood. If that’s the case, a garage will add incredible value. If you live in an area where garages aren’t the ‘norm,’ though, you may not see as large of an improvement in the home’s value.

If you already have a garage, but it’s in less than optimal condition, renovating it can greatly increase your home’s value. A large part of your home’s value has to do with its curb appeal. Since the garage is one of the first things people see on your home, an ill-fitting garage could really hamper your home’s value.

On average, homeowners see between a 75% and 80% return on their investment when adding or renovating a garage. Before you decide to do so, talk with a local appraiser to see how a garage will affect your home’s value. If you won’t see that much of an improvement, you may want to find other ways to fix up your home to improve its value.

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Once you get the financing to make your home renovation project a reality, it’s time to get down to work. Just how do you manage such a large project without getting overwhelmed? How do you choose the right contractors and keep track of everything going on?

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Read our guide on the top ways to manage your project with ease.

Do Your Research

We know it can be tempting to reach out to the first contractor that you find with availability or to choose the cheapest contractor that you find, but that’s not in your best interest. Instead, take your time and do your research. We recommend that you obtain referrals from friends or relatives that used the contractors before as well as use the reviews others provide online.

As you do your research, you’ll also want to interview the contractors yourself. Again, we know it’s so much easier to contract services online and believe that what you read is true, but you won’t know if you truly click with a contractor and if you have the same work ethic until you speak to him/her in person.

Some of the questions you should ask include:

What is your workload like?
Can the contractor meet your deadlines?
Does the contractor have experience in the particular renovations you want?
Does the contractor have proof of the work he has done before?
Will he supply references?

Know What Goes into the Bid

Anyone can spew an attractive bid at you in the hopes of earning your business, but what’s included in that bid? This is the information that you need.

Ask specifics about what the contractor includes in the bid. Even better, ask what isn’t included in the bid. Are there extra costs for working weekends or nights? Are there extra costs for installation or removal of necessary items? Are there cleanup costs? Are insurance and permits included in the cost? These are just a few of the general questions you should ask to make sure you aren’t slapped with an unpleasant surprise bill at the end of the renovations.

Set Deadlines

It’s important for you and the contractors to be on the same page. As a part of your contract, you should include specific deadlines for each phase of work. This will cut out some of the stress on the project for you.

For example, if you know the project should be done in 3 months, but 2 months into it, you notice the contractor isn’t even halfway done, you may start to worry. Rather than making one large deadline, break it down into smaller and more manageable pieces. You can determine which exact benchmarks you need based on your project. Is there demolition and framing involved? Is there electrical wiring involved? Are any inspections necessary? These are all great stopping points and great ways to measure the progress of the project.

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Don’t Pay Upfront

If there’s one thing that keeps contractors motivated, it’s money. Don’t make the mistake of paying for an entire project upfront. What’s there to keep the contractor doing the work? He could take the money and leave town.

Instead, pay a small amount upfront in order for the contractor to purchase any necessary supplies and to get ready to start the project. You can then set disbursement dates that coincide with the deadlines. At each disbursement date, you can pay a prorated portion of the total cost of the project. Don’t make the final payment until you have completed all necessary inspections and are 100% satisfied with the work.

Make Sure Each Contractor Has Insurance

If there’s one thing every contractor needs before they work on your home renovation project, it’s insurance. What if something were to go wrong? It could be something with your home or something happening to the contractor himself. If he’s on your property, he could hold you liable if he doesn’t have proper insurance. This could set you back financially, putting your project on hold.

Rather than take a chance, ask to see a copy of each contractor’s insurance. Make sure it’s valid and that the amount covers the scope of work that the contractor will do at your home. This way you know that you have coverage should unforeseen circumstances occur.

Take Your Time

The most important thing you can do when planning a home renovation project is to take your time. This is a big decision and something that can affect your investment down the road. Do your research, shop around, and make sure you are comfortable with the contract that you sign with the contractors.

If you have multiple contractors working on the property, you’ll need to keep very careful records so that you don’t miss something. It’s ideal if you can find one general contractor that can oversee the entire project, but if that’s not feasible for you, it’ll be up to you to handle the work and to make sure that everyone is on the same page throughout the entire process.

Managing a home renovation project can be exciting and overwhelming all at the same time. Take your time choosing your contractors and making decisions regarding the work that they do. In the end, it’s your investment, so you have the final say in what happens with your home renovation.

Meta Description: Managing your home renovation project is almost more stressful than finding the financing to make it happen. Learn the top ways to manage your home renovation project stress-free.