Are you thinking about renovating your new home? Learn from our experience and find out whether it’s better to renovate before or after moving in.
Renovate Your Home When It Is Right For You
A fan emailed me the other day asking me when you should renovate your new home.
He said that he and his wife had just bought a new home, and they weren’t sure if they should renovate before or after they moved.
He wanted to know what renovations we completed when we bought our new house.
Home Renovation Checklist
It was a question that I didn’t have to think much about because we are in this position now.
We did not renovate before moving into our new home and preferred saving the cash before renovating.
When we bought our new home, I created a renovation checklist and budget years later.
We did this so we knew exactly what needed to be renovated.
However, the renovation checklist keeps growing and probably won’t stop.
Renovate First To Protect Your New Home
Right from the start, I knew I needed to renovate our new home from the outside before touching the inside.
Protect the home on the outside so the entire structure is sound, and then move indoors.
However, emergency renovations for your new home take priority.
- Kitchen
- Bathrooms 1 and 2
- Deck
It was easier to refer to my renovation checklist as I was going along rather than trying to remember it in my head.
Every brilliant planner will have a checklist so they have information to fall back on.
There is no custom list here; you can design your own.
Grab a piece of paper and start making notes.
I also wanted to have the opportunity to fix what needed to be fixed on my own rather than paying someone else to do it.
However, sometimes a professional must be called, and you can always negotiate pricing.
Besides, it gives my wife time to go through those renovation-type magazines to pick out what she likes.
Neighbourhood New Home Renovations
Every morning, I look out the window, and a new truck is on our street at a neighbor’s house doing some renovation.
Homes in our area range from 15-25 years old and are likely outdated and need updating.
Our neighbor, a single homeowner, told me that she was in the middle of having her bathroom re-done after living in the home for more than eight years.
She could only afford to do a budgeted amount yearly to upgrade her home.
When she moved in, the house needed some work, so she decided to save the money to do it over time.
So, not everyone wants to rush and have a fast and ready or instant model home before moving in.
Needs vs. Wants With A New Home Purchase
Not everyone wants to spend money renovating their new home.
Some people think we’re wacky for wanting to put a brand-new kitchen in, but it’s something we need to do to accommodate Mrs. CBB’s disabilities.
There are, however, differences between renovation needs and wants.
A renovation is something that must be done for safety or functionality purposes.
Wanting a renovation is for aesthetic or modernizing purposes.
We don’t need to renovate the kitchen yet, but we need to focus on the bathrooms.
In the summer, we see many homes for sale and open houses that garner attention only because we are in a sought-after neighborhood.
Just lately, though, we noticed that of the homes that sell before the new owners move in, they have plenty of renovations done to the house.
Considering the price paid for the home, I have to question the worth of these renovations so soon after purchase.
Waiting To Renovate Your Home
When you live in a house for a year or two, you can judge which renovations you want or need based on your living experience.
By waiting after you live in a house, you will learn what you like and don’t like, which gives you time to start saving money for the renovations.
Expenses To Renovate In A New Home
When you’re already buying at the top of its value, you must be careful how much money you sink into your new home,
Realistically, you may never recoup money for particular home renovations for a long time, if ever.
An example would be a modest home on the market for $495,000 in our neighborhood.
This house was priced in the top range of what the home would sell for.
In less than two weeks on the market, the home sold for $5000, less than the asking price.
The family-sized home has an in-ground pool and deck and is a back-split on a large lot.
Renovating A New Home Before Moving IN
Over four weeks, we watched contractors tear the inside of that house apart.
Not only did they install new flooring, bathrooms, and kitchens, but they also built a new deck.
They also removed the interior doors, painted them, and re-hung them with new hardware.
In my head, I’m running numbers because I can’t believe how much money they were willing to put into perfectly liveable homes so soon after purchase.
I can understand if you acquired a great deal on a house like we did and then decided to renovate, but not at the top price range.
Selling After Renovations
What would happen if they needed to sell fast right after renovating?
They risk losing money because their house might not be worth as much as they think.
However, I often say, “It’s worth as much as someone is willing to pay.“
This is when you may see a house overpriced for the area, and the homeowners get upset at the real estate agent, asking, Why has my home not sold yet?
You can’t have $500,000 comparable homes on one street and then a similar home to those, and you price it $200,000 more because you renovated it.
Who will want to buy it?
You know the real estate agent will pull the comparables for the buyers, and they will compare those prices to your home’s.
MPAC And The Value Of A Home
If you are not sure of the value of your home, you can log in to MPAC to view your MPAC home assessment or call them for a copy to be sent in the mail.
While you can see the value of your home, you can also see what other homes in your area are valued to give you a better idea of which direction to go.
When we bought our home for $265,000, the same model on our street was selling for over $300.000 a mere 12 months later.
Four years later, only two are over $400,000, and our model is one of four in our subdivision.
I’m afraid we don’t live in a custom-built home but in a house built by a well-known builder in town.
Time And Funds
When we decided to buy rather than rent, the savings for a new home were kicked into high gear while we were renting.
We couldn’t afford to complete all the renovation needs or wants before moving into our current home purely because the spare cash wasn’t available.
After saving for a down payment on our home, which was more important to us, we figured our home was livable, and so what if the carpets were purple?
Over time, projects have been completed mostly based on priority.
It’s a slow process, but it’s how it happens unless you have the cash to complete all the renovations before you move in.
There is an alternative, but taking out a line of credit against the property or increasing your mortgage seems bonkers.
Unless you plan to stay in the house for the entire mortgage, you’ll be paying for those renovations even after the house has long since been sold.
We wanted to be mortgage-free before we were 40, so we needed to kill the mortgage quickly while taking care of projects.
Budgeting for renovations and searching for deals on quality products for your new home project may help you save some money.
Our friends renovated their first home for under $25,000, which worked out for them even though they are as savvy with money as we are.
Handyman Work
There are advantages to doing all the renovation work before you move in.
First, you don’t have to live with the mess that comes with renovations, and secondly, there’s no inconvenience of nowhere to wash dishes.
You can clean your ductwork, move into a new house, and enjoy that smell.
The homeowners at the time were both very old and did no renovations to our home, not even the roof.
When putting in an offer, we considered the comparables and knew we had room to go down, given the state of the home.
The previous owners smoked in the house, the carpets had burn marks on them, and they were very old.
Nothing in the home was updated, no deck, an unfinished basement, and other things.
The one thing we loved about our new home was the size and layout; we knew we had stumbled onto a gem.
Flipped Houses and Shady Work
We’re not into flipping houses, and I wouldn’t spend my money buying a home that has been flipped by someone else.
All these contractors coming into homes to renovate is excellent for the local economy, I suppose, but I do wonder where the skills of modern man have disappeared.
I can barely remember any contractors at our home as a child.
Since my father was an electrician, he taught me the hands-on skills that I have retained over the years.
However, looking at open houses with Mrs.CBB, I noticed vast amounts of poorly executed DIY jobs.
DIY Home Improvement Show
I blame some of those HGTV home and renovation shows for trying to get people to renovate independently when they have no skills to get the job done right.
The list of home renovation shows on TV is endless but not useless, as there is always something to learn.
Sometimes, I wonder where they develop some of these ideas for TV shows.
Even Mike Holmes says do it right, so do it right.
As much as I enjoy watching those TV programs, they don’t make me a professional; they only give me tips and ideas.
Working in the trades of education and experience is not something the average person will learn overnight or by watching the tube.
If you don’t know what you’re doing, don’t begin a project and waste money on a job that may cost you more in disaster clean-up.
Regarding renovations, taking my time to ensure I do it right and the way I want it seems the reasonable route for our family.
If you prefer watching DIY renovation reality shows or YouTube videos and want to take on a project, be aware of potential pitfalls.
Renovations Are Personal Choices
Taking the time to save up the cash in our budget that we need to pay for our renovations has worked for us rather than rolling it into the mortgage or line of credit.
Either way, it’s a personal choice to do what makes you happy regarding your new home purchase.
Discussion Question: What renovations did you do to your new home before you moved in?
Thanks for reading,
Mr. CBB
Related posts:
- Should you buy or sell first?
- Becoming A Single Homeowner – Part 3 “Mortgage Options”
- Bank Sales In Canada Not The Same As Bank Foreclosures In The USA
- Best Home Renovations, Money Wasted or Money Invested?
- How To Maximize Your Mortgage
- Our Canadian Home-Tips For Saving For A Downpayment
- Budgeting With Mr.CBB Got Us Back On Track!
We really did not do any renovations before we moved into our house. The sellers had to fix a few minor things and we did a bit of painting, but nothing other than that. The renovations we’ve done since, we’ve saved for and did what we could and hired out what we couldn’t.
Like us, we just go with the flow and if something needs done then I will get it done.
Hello Mr. CBB. I really like your suggestion about living in a house for a few years before you dump a bunch of money into renovations (my paraphrasing!). We really loved that our townhouse was freshly painted in neutral colors and that it had fresh carpet (though we prefer wood floors…that is a looooong way off after years of travel). We have not made any upgrades in ten years. Some may find it ludicrous, but we are very happy. We could not have anticipated spending many thousands to replace both inside and outside A/C units and we would not have been able to pay for my master’s degree in cash if we’d renovated our home, so I lean on the side of Less is More with the home renovations. I’d rather spend my money on learning and travel!
Many people are very happy and don’t want to renovate. That is why there are many homes that need to be renovated when a new owner moves in BUT that’s only if the new owner wants to, some don’t.
CBB! We’ve replaced things like air conditioning units and a dishwasher, but cosmetic renovations have yet to be done and may never be done. We bought the house in 2003 and love it just the way it is. flaws and all. And lo and behold the damn thing did not fall down on us and no one has complained that when they visit, they live in squalor and filth. Amazing, right?
Some people are very happy and that’s great. We love our house but the carpets MUST go… she smoked in here so they are junk.
Great post Mr. CBB.
I have a gripe about HGTV too, because they strive to create in viewers a need for things they can do perfectly well without. Let’s be honest here: their programming is funded by advertisers, and the advertisers want to sell home improvement and decorating products. What they promote has scant relation to what we actually need and, like you say, it’s important to differentiate between needs and wants.
We bought our most recent home because of ease of maintenance and affordability but there are some things we now need to do. I stress the word “need” because I’d quite happily do without making the changes if I could, but my husband has some mobility issues that will soon require a bathroom renovation and a stair lift. Neither are optional, and both are big expenses that must be budgeted for.
Thankfully, there is assistance available in the form of grant money to help cover the cost of renovations required as a result of health issues or physical disabilities. Others may want to know this too, if they are in the same situation. If you are unsure where to start in seeking assistance, a visit to your local MLA’s office may be a good beginning. They’ll know about the available programs and are often willing to help with the paperwork.
As for other renovations, my approach is mostly “use it up, wear it out, make it do, or do without.” It’s important to keep things in good repair and to consider modern preferences when considering resale, but if it’s just for yourself and you’re going to be in a place for the long term, think long and hard about making big changes, especially if they require that you go into debt in order to achieve them. Better an ugly bathroom or worn carpet than a big chunk out of your line of credit!
Well said Beth thank you. A friend of ours has problems as well with his leg and is on disability. He gets services provided like house cleaning and will get a portion of a lift covered. Some people don’t know about the help out there .
Great post! And I agree, with this statement “I wouldn’t spend my money buying a house that has been flipped by someone else”. They are in it for profit, so you are NOT getting a good deal in this situation.
I am all about DIY, but know when I’m out of my league. Honestly, I wish I took more time on laying level ground for our patio, because now it’s slightly tilted and feels a little weird to sit on. Too much grade for water runoff, but I was soooo tired that I decided not to level it further. DUMB!
With most things, I will DIY, but I’ve learned my lesson, and will DO IT RIGHT the first time, because it’s not worth short-changing myself and taking shortcuts. Never is 🙂
That’s right Jacob.. any PF blogger is smart enough to know that wasting our money when we can’t do it right is pointless. Cheers mate
We bought our current house from the bank as it was a power of sale unit. We had planned to re-do the kitchen once we were in as there was bugger all for cupboards and such. We knew the wiring was sub-standard from what we could see touring the place. Once we got in the house we realized just how bad the wiring was as we could now punch holes in the walls to see what was back there and it was not good. Wiring took top spot on the to-do list. Like almost every other house we had looked at it was very clear that who ever had done wiring in these houses didn’t know what they were doing and sure as hell didn’t get the work inspected. One example…. the attic had a flourecent fixture up there screwed in to a couple of rafters (not code) the wire running from the fixture to the switch was, I kid you not, an old extension cord with both ends cut off so it could be wired in. Definately NOT code. Re-wiring this house was a need, that much was clear. It was a fire hazard plain and simple. Our kids were young at the time and hubby worked nights. I didn’t sleep worth a darn the first year, until we got the place re-wired, because if anything happened(a distinct possibility!!!) I would have to get three sleeping children out safely by myself….. Even the inspector from Ontario Hydro agreed when we had a contractor come in to upgrade the fuse box to breakers. The old wire was so bad that at one point I was helping to feed wire down from upstairs and the old wire fell apart in my hands, literally, fell apart as I was guiding it out the hole. We did the re-wiring ourselves, but hubby had taken a night school course in home wiring and we had a permit and the work was inspected. Passed with flying colours by the way……
All that said I would love to be able to do the cosmetic stuff like painting to be done before I moved in as it would avoid the hassle of moving furniture and such from pillar to post and back in order to do the work. I’m pretty sure my back would agree there. I would definately not be paying the asking price if the place needed a lot of work. What I paid would reflect how much I would have to spent to fix things up to bring it up to code on the safety issues. I don’t want to go through all the crap we went through with this house again….EVER!!!!
That’s exactly what happened with our house. We paid $265 where an identical home was $300k across the way. Mostly ours was the smoking in the house, roof, carpets, smoke really does mess up a house. You did what was right, safety first. Thanks Christine for your awesome responses to my posts!! I love it
I hear you with the smoking issue.I remember when helping my sisters-in-law try to get the mother-in-law’s house ready for sale. Mom used to smoke as did Dad before he died and her friend that lived with her did as well. The only want to get the smell out is to replace all the carpet and paint the walls. We cleaned, steamed and cleaned some more and you could still smell it….. The smoke leaves a film on things too, you should have seen the colour of the water when we washed the blinds….it was black…. If the house smelled of smoke when I was looking at it, that alone would knock several thousand off any offer I made.
I’ve just about replaced everything in the house. The upper level is brand new. There is no longer any smell in here. It took LOTS of work but it was still worth the amount we saved on the house.
We did a lot of work when we first moved in, but ours was a foreclosure in REALLY rough shape, so it needed to be done. But, we moved in, and did it all ourselves. =)
I never thought about the foreclosure but in that instance you would likely have to make that call.
Hi Mr. CBB! I’ve been thinking about this for the past while.We have a fence that goes around three sides of our yard and only need to fill in the two sides to the house. Our dog keeps escaping and it would be nice to have but there seems to be so many other more important things to focus on – like paying down debt.
I want to go through the house on a yearly basis and do upkeep – like painting and other things as they come up. If we get into this habit, it would probably go a long way to prolonging the life of things like our deck, flooring, whatever. Thanks for the article – you put out some good guidelines and food for thought.
Your Welcome Lindsey… It’s about priority for me. I did the deck this year to protect it, I did the fence protection the year before.. so it really boils down to your needs.
I appreciate wanting to live in a nice, updated home, I wouldn’t renovate until you know that you plan to move within the next couple of years. This is particularly true if it is your first home; you want to be able to get the most from it.
Your situation sounds like the ideal type of house for a renovation: you got a great deal, loved the layout, size, etc., but just wanted to clean up and renovate the interior to your liking. I think these are such important considerations before making a renovation decision, so that you don’t end up underwater on the house. And I totally agree with what you said about doing it right: the people who lived here before us did lots of the renovations half-arsed, we’re learning, and we are living with their mistakes.
Yup and we have to pick up the money mess with these half arsed jobs. The lady across the road who paid $7000 for new hardwood floors… well you would just die if you saw the cuts… rip it out and start over BUT they sold the house highlighting those floors.
I think there are a lot of different factors that go into this. If you can afford to renovate and really don’t like anything other than the newest of the new, then go for it right away. However, renovating can be expensive and most people can’t afford to put everything into it.
Great topic CBB! As long as one understands that you will most likely never get all of your investment back I say go for it! You can save a ton of money by doing some DIY projects yourself. The other danger with renovations is when you go to sell you need to be careful about not pricing your property too high as that could increase days on the market.
That’s just it with some of these homes. They go in with major renos to a home that may be outdated but take the risk that if something does go wrong and they need to sell them may not recoup the cash. Cheers mate
Ha! That’s funny I just wrote on a similar subject. It’s amazing how crazy people get with wanting to renovate their homes. When I was in Italy, it was interesting how much of stark contrast it is to here. They were much more focused on fashion, because they spent the majority of their time outside the home, where we probably spend the majority of time inside. I’m sure that’s changing there now as well though. I agree, there are some things that are definitely better left to a professional. But I’ve also saved quite a bit from DIYing. I’m not the handiest person, but after I’m proud of what I did. I know I built that deck! It’s a great learning experience too. You just have to plan your projects carefully and consider all the costs before tackling on a major job. But at the same time I think it’s important to not have to go rely on calling a plumber or other contractor every time that something needs to be fixed.
I do most of the work myself here but when it comes to some trades I’d rather call in my friends. I think taking time and planning is what helps me out the most.
I would only renovate if I really need to (ie, really ugly carpet or a damaged roof!). Otherwise, I wouldn’t spend the extra money
well the roof is a top priority.. that is one of the most important for sure.