Most home buyers are not just interested in fixing up their homes to make them look pretty; they are looking to get value out of the property and hopefully one day make a return on their investment. In the recent real estate market, turning a profit on a house has been more difficult than ever before. Homeowners must be extra cautious as they spend money to fix up their home because they may find that a simple mistake could end up costing them big on their investment. By doing a little research, homeowners will discover that there are several common mistakes do-it-yourselfers make that end up reducing or even eliminating any value gains they were hoping to achieve. Homeowners should be aware of these mistakes and take the necessary steps to avoid them as they undergo any home improvement project.
Paying Too Much for the Home
This is the worst initial mistake a home buyer can make, especially in this lagging real estate market. While you may have found the home of your dreams, remember that it is important not to overbid simply to ensure you will get the house. If you purchase your home for too high of a price and then proceed to invest more money into home improvement projects, the odds are low that you will get a large return, if any, on your investment. Have your real estate agent run a search on comparable houses in the neighborhood, and make sure you are getting your home for a good price.
Forgetting about Location
Another major mistake home buyers make is purchasing a home in an undesirable location. Location is everything when it comes to real estate, so it should be a high priority when shopping for a home. Keep in mind the school district the home is in, the cost of property taxes, and the distance to stores, restaurants, and other amenities. All of these things are priorities for other home buyers, and if your home is in an unfavorable location, it could make a big difference when you go to sell your home in the years to come.
Foregoing a Home Inspection
Before you buy any home, make sure to have it inspected by both a private home inspector and a city home inspector. These home inspections will help you in your purchase decision by ensuring that there are no underlying issues with the home that might involve expensive repairs. Local municipalities often require city inspections, and a private inspector can provide valuable advice as well. Inspectors will be honest with you about any issues they find in the home and how much it will typically cost to fix them. Home inspections protect the buyer, and if you decide to save a few hundred dollars by skipping them, then you risk spending thousands more later on costly repairs.
Failing to Get Permits
When you are starting DIY projects on your home - specifically facade renovations, landscaping and structural additions - be sure to research your local municipality's construction codes and requirements for permits. Failing to obtain the proper permits could put you at risk for fines from the city or even a complete tear-down and rebuild. Many homeowners avoid getting permits because they can be costly, time-consuming and loaded with bureaucratic paperwork, but it is an essential step in any major home improvement project.
Underestimating the Cost
When you are taking on any project in your home, be it large or small, be cautious not to under-budget your expenses. Make conservative estimates on what each step of the project will cost - including labor and supplies - and then stick to your budget. If you go over budget on every home improvement project you do, you will quickly find yourself putting more money into your house than you will be able to recoup when you sell in the future.
Neglecting to Plan
When starting a DIY project, make sure to craft an overall project plan. This is important in helping you to know how to much time and money to budget for your project, as well as what steps are required to complete the project and the best order in which to take those steps. Having a master plan also helps keep everyone who is working with you organized and on the same page with your home improvement project. You do not want to leave yourself under budget for the things you want like flooring, fixtures, or new vanity sinks.
Disregarding Safety Precautions
When doing any work on your home yourself, be sure to take the proper safety precautions. Homeowners who do not follow safety guidelines when working on DIY projects often end up with injuries and may even cause damage to the project at hand. Future buyers will notice shoddy work when they are looking to buy your home, so it is important to do all projects according to professional standards with the proper safety precautions. Always take care when using items such as ladders and power tools, and be especially careful when working on plumbing or electrical wiring in your home.
Taking the giant leap into home ownership can be both daunting and exciting. Many overzealous homeowners dive right into several home improvement projects at once before doing the proper research. It is important to remember that every project you do on your property may ultimately affect your ability to resell the home down the road. Make sure you are not putting more money into your home than you will be able to get out in profit. Keep in mind your home's location, the average median income of the area and the values of the other homes around you. You can make your home the shining star of the neighborhood while still being able to sell it at a profit if you avoid these seven simple mistakes.
This post was written by Ryan Tupper. Ryan has been a DIY enthusiast his whole life, and now helps others remodel their homes. Ryan uses DecorPlanet.com for his remodel needs.
