When hiring a contractor for a full renovation, look for experience with whole-house remodels in your area. Requesting references and a portfolio of previous projects helps homeowners gauge the contractor’s work quality.
Unforeseen costs are common during gut renovations, particularly in older homes. These can include outdated wiring, hidden water damage, and structural adjustments that ensure safety and compliance with local building codes.
Remodeling Costs
The average home remodel costs vary by region and the scope of the project. Regional factors like zoning restrictions and construction labor rates may impact renovation costs. Additionally, trends in materials and design can increase or decrease renovation costs.
Getting multiple quotes from trustworthy contractors can help you establish a realistic budget for your remodeling project. Be sure to factor in the cost of obtaining permits and other potential expenses that may arise during the renovation process.
Among the best ROI home improvements, replacing existing wood-frame windows ranks number one. On average, homeowners recoup $9,200 for every $10,000 spent on this project. Other popular home improvement projects include a kitchen remodel, bathroom upgrade, and garage conversion.
Financing Options
Home improvement projects often involve large sums of money, which may require some type of financing. Review your options, including personal loans, HELOCs, and cash-out refinances. Choose the loan that makes sense for your project, timeline, and budget.
Credit cards are another option, but interest rates are typically high. They’re best used as a temporary solution and paid off quickly.
A home improvement lender can help you determine the scope of your project and provide an estimate. They may also offer a construction-to-permanent renovation loan, which converts to a permanent mortgage once renovations are complete. Lenders assess your financial profile and creditworthiness based on factors like your credit score, DTI, and available home equity.
Gut Renovations
Unlike cosmetic renovations, a gut renovation strips down a property to the studs, changing almost everything inside. During this phase, homeowners may replace walls, flooring, plumbing, electrical systems, and fixtures to create more open floor plans or address underlying issues.
This is also when contractors and structural engineers ensure that any changes do not compromise the safety of a home or its foundation. This includes modifying load-bearing walls and creating support for additions like second floors.
Gut renovations can take months to complete, so it is smart for homeowners to plan alternative living logistics. This includes arranging for temporary accommodations or setting up a comfortable area within the home during construction.
Second-Story Additions
Adding a second floor to your home allows you to increase living space without the cost and hassle of selling and buying a new house. It’s a great option for families with growing children or adults wanting to stay in the same school district but can’t afford to move.
Full second-story additions are typically more expensive than a partial remodel and will require structural reinforcement to the existing foundation. Additionally, you’ll need to check zoning laws for your area to ensure that the design and size of the second floor will comply with local standards. This can include powerline clearance or historic preservation restrictions.
ADUs
ADUs (additional dwelling units) also known as granny flats, mother-in-law suites, backyard cottages and secondary units are growing in popularity. These structures are a great way to house guests or older family members, as well as provide rental income.
Depending on local regulations, homeowners can build ADUs on their property by modifying the existing home or creating a new structure from scratch. A good contractor can help them determine the best location for their project and navigate the permit process.
Many residents are drawn to ADUs for their affordability and proximity to family. However, the complexities of zoning and regulatory issues can make this housing solution a challenge for some.
Local Requirements
Local requirements are often associated with specific types of renovation projects. For example, soil or geotechnical reports may be needed if you’re adding a basement or building on a slope.
State contractor licenses are required for most construction, maintenance, and repair work in Louisiana. You need a Commercial license for commercial projects over $50,000 and a Residential or Home Improvement registration to perform residential work priced above $7,500 and below $75,000.
You must pass the Business and Law and any applicable trade exams in order to qualify for licensing. Application and exam fees can be found in the license application packet. Home Improvement registrants must also submit a background check.