Are You Ready to Remodel? What to Consider Before Gutting Your Home
I think it’s safe to say that most of us dream about making upgrades to our home. “Someday in our fancy new kitchen, let’s put a fancy French stove…wouldn’t it be exciting to have a bedroom big enough to put things in it besides just our bed… and let’s have a live-in masseuse to go with it…”
A gut job or gut remodel can transform an outdated space into your dream home, allowing for a complete overhaul of the entire interior and living space.
Most of us have home dreams we aspire to make reality so that our home better fits our family and our needs. For some, the process to gut a house is the key to achieving a fully personalized living space. Figuring out when the right time to start depends on a few factors, and it will be different for every person and situation. Let’s look at what you should consider.
A remodel in Park Point from 2019.
Equity, Affordability & Gut Renovation Costs
This is almost always the first place to begin. Because you will be investing money into your home, the equity and affordability should direct your frame of thinking. The best way to pose the question is: what is the return on investment? First and foremost, what is your current equity on your home? If what you owe is more than what your house is worth, it’s probably not the right time. You need a certain level of comfort in your equity before moving forward in even a small remodel, as the longer-term increase in equity may take a minute to catch up to your initial expenses. A gut renovation is a significant investment, but it can greatly increase your property value over time.
If you believe that in five years, your return on investment will build your equity back to what it was pre-remodel, then the practicals make sense to proceed with a remodel. Kitchens, baths, and decks/patios give the best return, in our experience. If the remodel gets more extensive, it may change your ability to meet these criteria. Of course, many people will choose to remodel in stages when the list is long. However, what may be surprising to learn is that sometimes the refinance can be more affordable to just do it all at once. When considering affordability, it’s important to understand the total cost, including labor costs, material quality, and waste disposal, as these can significantly impact your budget.
A good rule of thumb is your existing home expenses and utility cost plus the cost of the remodel should be no more than ½ of your monthly income. You want to avoid bringing your house and related payments into a place that you can’t afford. Do you have room to expand your monthly cost of living and take on an additional payment or even possibly refinance? The answers to these questions will help guide your decision. The cost of the remodel can vary, and gut renovation costs often depend on the project’s scope and are typically calculated per square foot. It’s essential to plan for unexpected costs, as the actual cost may differ from initial estimates due to unforeseen issues. When refinancing or assessing affordability, having a detailed cost breakdown can help you save money and manage your budget effectively.
Location & Local Regulations
When making changes to your home, you always need to be forward-thinking about your life plans. Is your current house located where you want to be in 5 or 10 plus years? Location can make a significant difference in your overall health and happiness as a family. Every person’s needs will look different, but if you know that you don’t want to be in your current home for long, that should be an important driving factor in your decision-making. When thinking about remodeling, you, once again, want to make sure that your return on investment is worth the cost. If it’s not, investing in your next home purchase will be a more sound decision.
For us here in Duluth, the terrain and geographical location can make a big difference when considering a remodel. Being on the shore of the world’s largest body of freshwater has its perks, but factors like wind speed and erosion can also pose significant risks to your home over the long term. Natural disasters such as floods, hurricanes, or earthquakes may require major renovations or structural reinforcements to ensure your home’s safety and resilience. Additionally, it’s important to consider local fire regulations, especially in areas prone to wildfires or for multi-level homes, as these codes can impact your remodeling plans and emergency escape routes. Be sure to investigate how your environmental surroundings could help or hinder your home remodel.
Above the J&RS crew works on a second story addition up the north shore.
Structure & Structural Issues
Everybody interested in remodeling has probably heard the term “good bones.” Making sure your home has a strong structure is vital to the longevity of your remodel. The foundation is arguably the most important piece of the home. It is very important that your home first has a strong foundation that keeps the elements out. Along with that, make sure drainage, windows, siding, and roofing conditions are strong before moving forward with a remodel. During a remodel, it is essential to address structural issues and ensure the structural integrity of the home to maintain long-term stability and safety.
When thinking about a remodel, make sure to bring in a professional who can address any foundational issues like rots, leaks, cracks, and more. It is also important to consult a structural engineer to assess load bearing walls and other major structural elements, ensuring all changes are safe and up to code. Before making any changes, the renovation team should identify load bearing and interior walls to avoid compromising the structure. Outdated systems, such as plumbing systems and electrical systems, may need to be replaced during a gut renovation to meet modern standards. Locating plumbing lines before demolition is crucial to prevent accidental damage. Be aware of the potential presence of hazardous materials like lead paint, which pose health risks and may require specialized equipment and skilled labor for safe removal. Throughout the process, safety precautions must be followed, and having an experienced renovation team is key to managing the project efficiently and safely. At J&RS, we are very transparent with anyone who comes to us about remodeling their home. We’re not afraid to have honest conversations about what’s behind the walls. It would be an irresponsible business practice for any builder to install a new kitchen over a bad foundation.
Permits and Approvals
Before you start tearing down interior walls or planning major structural changes, it’s essential to understand that gut renovations require more than just a vision and a sledgehammer. One of the most important steps in the renovation process is securing the necessary permits and approvals from your local authorities. These permits ensure that your project complies with all local building codes and regulations, which are designed to keep your home safe and up to standard.
The cost of obtaining permits can vary widely, often ranging from $500 to $2,000 or more, depending on the size and complexity of your gut renovation. While this might seem like an often overlooked cost, skipping this step can lead to hefty fines, delays, or even having to undo completed work if it doesn’t meet local building codes. That’s why it’s crucial to factor permit costs into your total gut renovation cost from the very beginning.
Navigating the world of necessary permits and local regulations can feel overwhelming, especially if you’re new to home remodeling. This is where working with the right residential design firm can make a significant difference. Experienced professionals can guide you through the permitting process, help you prepare the right documentation, and ensure your renovation plans are up to code before construction begins. Taking the time for careful planning and securing all required approvals will help your gut renovation move forward smoothly, saving you time, money, and stress in the long run.
Conclusion
Ultimately, each situation will look different, and the decisions you make about improving or upgrading your home will be determined by evaluating what’s going to make you the happiest along with what makes the most sense practically. Before starting a gut renovation, thorough planning is essential, including considering key factors and renovation considerations such as budget, timeline, and project management. Using a home remodeling checklist helps define the project’s scope and manage both your budget and timeline effectively. It’s also important to anticipate unexpected issues that may arise during the demolition phase and ensure you have proper insurance coverage in place. During interior demolition, always use personal protective equipment, including safety boots, and operate power tools safely. Arranging for a dumpster rental can make waste management much more convenient. The important thing is that you determine what’s most important to you and your family’s short-term and long-term goals.
Occasionally, we will get a client who embarks on a remodeling journey only to discover that building new makes more sense. One pre-retirement couple who lived in Duluth, MN, in the same home for 25 years and owned it outright (about $325k) wanted to remodel their abode to update many things: roofing, siding, windows, kitchen, basement update, flooring, and paint changes. As they began to price out their priorities and wants in their remodel, the cost started to reach around $300k to remodel their existing home. That, coupled with the fact that they hadn’t made strong plans for how they would age in place in their home, gave them pause on their plans. Their project would have involved new flooring, modern design elements, new light fixtures, and a transformation of the home’s interior to reflect their personal style.
Through further discussion, they decided to instead complete minor repairs on their home to sell it and take their equity to build a brand-new custom home. J&RS successfully designed and built a $400K single-story slab home with an attached 2-car garage to meet their list of needs and have a home they could live in for the rest of their lives. Not only that, but also their new home is in a desirable neighborhood with universal design elements that will make it appealing to any family should they ever decide to move. They were very happy about their ultimate decision to build new. Gut renovation offers a significant undertaking but can resolve outdated space and provide a fully customized living space. Gut remodels can address all aspects of the home for a comprehensive transformation.
