Getting a Return on Your Renovation Investment

Throw your preconceived notions out the window. If you’re hoping to read this post and come away from it excited about all of the money you’re going to make after you renovate your bathroom and sell your house, then you might want to try back another day. Because, in our current housing market, it will take years for you to see that money back, if at all.

Kind of pessimistic, huh? But the truth of the matter is, it’s hard to find a project that is going to actually yield more profit than it costs to do. For example, let’s say you put an addition on your home. That will probably gain you back approximately 35% of what you spent to do it. And in the current economy, home values have decreased, but building materials are on the rise. It costs way more to build a house than to buy one these days.

So Why Renovate at All?
Truth is, people that hire HA Construction usually do so because they want to stay in their home, not because they’re wanting to sell. They like their house, the neighborhood, the schools. They want their house to meet a particular lifestyle, want to avoid the costs of moving, or simply can’t find a home they like more than the one they’re already in.

But, if you’re really needing to make some renovations and the return on your investment is a factor you’re not willing to push to the sidelines, there are a few options that have a better return than others. And it all depends on how you approach it.

Dollar for Dollar
One way of approaching the return on an investment is by comparing the actual dollar value of the renovation. For example, when you add a privacy fence to a yard that didn’t previously have one, you’ve just increased the value of your home by an average of $5,000. Additional renovations that will increase the value of your home include:

• Upgrading laminate countertops to a solid surface, like granite
• Adding a third car garage
• Building a shed or shop in the back
• Expanding or adding a deck, sunroom or covered patio
• Updating your kitchen and/or bathroom
• Fresh paint on all the walls, doors and trim (inside and out)
• New door and cabinet hardware
• New light fixtures
• Exterior landscaping for curb appeal
• Flooring upgrades (steer clear of laminate and cheap carpet though)

Be sure to upgrade your home with materials that match the value of your home and the expectations for the neighborhood – a high-end home calls for high-end finishes and elements. Avoid adding a swimming pool or hot tub – for every buyer that is looking for one, there are three others that will just rip it out.

Keep in mind, however, that, while these and other renovations may increase the value of your home, it may cost more to do them than the value they add. And it may take up to ten years to see a 100% return on your investment, if that kind of return is even possible. It’s simply the nature of the beast.

Desirability Out-Matches Price
There are several things you can do to your home that will increase the desirability, but fail to increase the value. To clarify, let’s look at two homes, both listed for $130,000. The first home is about 2,000 square feet and has an ‘80s vibe, with outdated kitchen cabinetry, carpet that needs replacing, and oddly colored bathroom fixtures. The second home – your home – is approximately 1,700 square feet, but you’ve invested in updating every room the house. You slapped a fresh coat of paint on every wall, upgraded the light fixtures, added molding to all the rooms, etc. When Joe and Sally Smith start looking for a home within their $130,000 budget, which do you think they’re going to choose: the fixer-upper that they don’t have the funds to fix, or yours that is move-in ready?

No brainer.

The Only Real Way to Make a Profit…
… is to leave HA Construction out of the equation. In order to see a return on your investment, your investment must be absolutely minimal, which means you’re going to have to do all the work yourself. Or, you’re going to have to find subcontractors that you can afford, and they’re hard to find because they can’t afford to advertise and they have no overhead – which means you’ll have to pay most of your budget up front to cover materials. And their lack of experience isn't always to your benefit. Not to mention, it takes a lot longer for you or a newbie contractor to do the job than an established company. Basically, getting a return on your investment means that you run the risk of it not getting done the right way.

HA Construction has never been hired to help flip a home or work on an investment home. We’ve never even performed maintenance on apartments. These jobs simply don’t have the budget available. What Andy and his team are hired for are new builds and renovations for people looking to make a house their forever home. They expect projects to be done correctly, in a timely manner and made to last. And hey, if they get a return on that investment someday, then that’s simply an added bonus.

Concrete May be the Answer for Your Renovation (Huh?)

When HA Construction tells you that concrete may be the best option for your porch renovation, your initial reaction may be to cringe.

Because who wants to use something as drab as concrete? Doesn’t it look cheap and take away from the value of a home if used on the front porch instead of a deck?

But what you’re probably envisioning closely resembles the cracked, uneven surfaces of old city sidewalks, or the rough gray sides of a cinder block – and you couldn’t be further off base. You might find yourself surprised by the aesthetic appeal that concrete can bring these days, not to mention the benefits.

Stamping concrete

Concrete is Much Less Expensive

The National Association of Home Builders showed an 11% increase in the use of patios on new homes from 1995 to 2005, topping out at 46%. Even when compared to the new vinyl decking options, you’ll quickly find that concrete cost much less to install. Not only is the product itself cheaper, but the installation process requires less work on the part of the contractor.

Save Your Back -- Concrete is Very Low Maintenance

Yes, the most ideal option for your front porch or deck is beautifully stained wood, and it may even cost less to install than concrete. However, when you factor the costs and time put into the maintenance of a wood deck, and even vinyl, you’ll find that concrete presents as a better option.

For starters, when you do an elevated concrete porch, complete with steps, the base is completely filled with gravel. There is no access underneath for critters to make a home; no need to call pest control for that anymore.

Concrete porch done by HA Construction

As far as maintenance goes, spray the porch off with a hose on occasion and you’re good. Sometimes you might need to scrub a little. If you paint the concrete, you’ll need to redo that sometimes. However, if you choose to add a pigment or resin to give it a nice tone, repainting won’t ever be necessary.

Yes, there is a possibility that the concrete will crack or the edges will break a little due to temperature changes and moisture. As long as you check the porch regularly and repair small cracks before they get too big, you won’t have much to do. Small repairs can be addressed on your own with very little effort.

Compare all of that to the maintenance of a wood porch, which needs staining/painting on a regular basis, can rot and needs the bottom to be open for drainage, and concrete could be the way to go.

Concrete porch done by HA Construction

Stamping and Colorization Mean Beautiful Options

Gone are the days of plain, smooth gray concrete. Stamping options now provide texture to make the concrete much more appealing. Stamps are used just like you imagine -- by laying a polyurethane design on the concrete at just the right time in the drying process. Most stamps are made to resemble building products such as brick, natural stone or even wood grain.

Instead of painting, another option for beautification of your porch is to have HA Construction add pigment or dust the wet concrete with a colored resin for a more natural look. Pigment is added to the concrete mix to give it color, which is a bit more expensive than the resin option because more product is necessary. Resin is added once the concrete is poured and stamped, adhering to the top of the wet concrete as it dries. After it dries, a sealant is added.

It Certainly Isn’t the Worst Choice

So maybe the idea of concrete to greet visitors’ feet at your front door isn’t such a bad idea after all. Andy and the team at HA Construction can certainly help you determine what options are best for your porch renovation or addition. And you can trust that their recommendations are sound, trustworthy and have your needs and interests as top priority.

The Lowdown on Insulation

spray foam insulation

Insulation – that word can mean so many different things to a contractor, but to a home owner, it’s usually just something in the walls that helps regulate the temperature of your home. Assuredly, however, there are many different types of insulation, each perfected for specific uses. If you’re looking to build, renovate, or simply make your home more energy efficient, it’s a good idea to have a clear understanding of what you’re getting into before you obtain quotes from contractors. HA Construction is here to help.

What in the World is an R-Value?

R-Value is how insulation ability is measured – the ability to resist heat. The higher the R-Value, the better the insulation performs at maintaining desired temperatures in your home. The U.S. Environmental Protection Agency’s ENERGY STAR website has a chart available to show what the recommended R-values are for the various climates in the United States.

Types of Insulation

Insulation comes in several forms, depending on your need. Some types require a professional for installation, and others are a simple DIY project. You can use the different types of insulation together, especially when you’re adding more, higher rated, insulation to a space that already contains some (but not enough). The types of insulation include:

batt / roll insulation

• Batt / Roll – Batt insulation or roll insulation is basically a blanket of insulation that comes in large sheets. They’re made from mineral fibers, such as rock wool or fiberglass (which requires eye protection when installing because the particles are so small). You may have to trim batt/roll insulation to fit the space it is going into, especially in awkward spaces, such as near window frames. Pros and homeowners can install roll insulation. There are also options for vapor-retarding facing (keeps out moisture) and flame-resistant facing.
• Loose-Fill – Loose-fill insulation, usually installed by a professional, is insulation in the form of loose fiber pellets that are blown into a space, often wall or unfinished attics. For new home construction, loose-fill is often mixed with an adhesive or foam to keep it from settling.
• Foam – Installed by professionals using a special mixture and spray process, foam insulation is available in open-cell (which allows water to flow through more freely and has a lower R-value) and closed-cell.
• Rigid – Rigid insulation is a board-like formation of fibers or plastics. It also produced in molded pipe coverings. This form of insulation is often used on outer walls before siding is put in place, or around air ducts in walls, crawl spaces and basements.
• Reflective – This aluminum insulation is most effective in reducing downward heat flow, which means it’s often used between roof rafters, floor joists and wall studs.

loose-fill insulation

What Type of Insulation to Use

While the descriptions above gave you some indication of where to use each type of insulation, many of them are interchangeable in a variety of locations around the home. These factors will help you narrow down your options a little better:

• The amount of insulation needed
• How accessible the location is for installation
• The type of space that needs insulation
• Cost and availability of the insulation types

Where to Start

If you’re looking to save energy, then the best place to start with adding insulation is the attic. By default, if you can see the attic floor joists in an unfinished attic, then you don’t have enough insulation – they should be covered.

You can find more information regarding installing insulation on the Department of Energy website. However, there’s nothing like a one-on-one evaluation and discussion of your insulation needs. Call Andy at HA Construction today to set up an assessment.

What to Look for When Buying a Home

Avoiding the Chameleon Fixer-Upper

It’s still a buyer’s market. If you’re looking for a home, the selections available are practically endless these days. One thing to be aware of, however, is that several sellers may be desperate to do so, which means there may be issues with the home that they try to conceal or fail to disclose, leaving you, the new home owner, with a lot of repairs on your plate. This can be especially true for an older house.

There are, of course, always indicators, but sometimes even professionals can mistake a serious problem for normal wear and tear. As you examine your options, utilize these tell-tale signs to help make sure you’re not walking into years of repairs when the home of your dreams turns out to be a chameleon fixer-upper.

Foundational Issues

Everyone thinks of a crack in the wall when there are foundational issues. While cracks can certainly lead to a problem, and big cracks mean big issues, some foundational problems can’t be seen with the naked eye. Here are a few other indicators to watch for as you house shop:

• Doors or windows that don’t open or close properly
• Unlevel floors
• Cracks starting at the corner of doors/windows and taking a diagonal track
• Gaps between the ceiling and upper kitchen cabinets, or cabinet doors that won’t close
• Leaks around the fireplace
• Gaps in the corners of fascia trim

Water Damage

When it comes to older homes, water is the number one cause of damage. But that doesn’t mean it will be as obvious as some black mold somewhere (and even that isn’t often visible without digging into the walls). Indicators that a house may have underlying water damage may include the following:

• Clogged or disconnected gutters/downspouts (always a good idea to get a record of how often they’re cleaned)
• Roof shingles that are missing or damaged (may indicate a leak)
• Trim boards that are loose or even showing signs of rot
• A sloping grade toward the perimeter of the home may indicate settling and water in the basement/foundation

Outdated Electrical System

They don’t make ‘em like the used to… thank goodness. Without any intervention, older homes do not have the electrical capacity to hold all the wattage of today’s appliance heavy homeowners. Think about it – before it was just a couple of lamps and a radio in the house – nowadays there’s a TV in every room, a cappuccino machine, blender, coffee maker, toaster and fridge in the kitchen and ten different hair appliances in the bathroom.

This is certainly something you need to look for if a home you’re interested in is more than 40 years old. The following may indicate that the electrical system needs updating, and bringing it to code can get expensive:

• The fuse box or electrical panel has a capacity of less than 100 amps (100 or more amps are necessary for modern homes)
• Aluminum wiring (discontinued because it’s a fire hazard)
• An inordinate amount of extension cords and adapters in use by the current owners
• Rooms without outlets
• Burn marks on switches or outlets

Not Energy Efficient

Many older homes were not made to be as energy efficient as new buildings. For example, there may be inadequate insulation in the walls, as standards for insulation have increased in recent years (turn-of-the-century homes may not have insulation at all in the walls). Additionally, the HVAC system may not be of the capacity necessary to handle the size of the home. Basically, you need to ask questions to see what steps the previous owners have taken to update the energy efficiency of the home or if it would be worth the investment to go ahead and buy and do some updates of your own.

Things the Seller can Hide Easily

Sellers that are desperate to do so may work to make the home look more presentable before you come to see it – meaning they’re hiding issues that may cause problems for you down the road if you buy. For example, sellers may:

• Clean up rodent droppings and indications of other infestations
• Filling in cracks in the walls that indicate foundational issues
• Oil floorboards to stop them from creaking (another indication of foundational issues)
• Painting the ceiling to cover leak stains

Have an Inspection Clause

Best practice is to first thoroughly examine the disclosures provided by the seller and ask yourself if any of them may indicate another problem with the home no mentioned. If you’re just in love with the home and want to put in an offer, make sure that your offer comes complete with an inspection clause. This basically means that if the inspection of the home turns up any issues, either the seller agrees to fix them, or you have the right to walk away from the contract without consequence.

And, if you just can’t pass up that beautiful turn-of-the-century home with lots of character, but it still needs some work, contact HA Construction to help with the updates, renovations and repairs. And make it the home of your dreams.