“How much would I save?”
The world of real estate is always about being proactive, not reactive. Many people feel that constructing a new home from ground up is an overwhelming process, where renovating an existing one may be a simpler and more cost effective route. There are countless misconceptions associated with the nature of construction that can negatively influence decision making when it comes to renovating or building.
“How much would I save?”
Upon identifying a property, it is imperative to conduct a thorough risk analysis when contemplating renovating the existing structure or constructing from scratch. Firstly, identify the year the home was built. Recently constructed homes within the past 20-30 years likely have better structural integrity and are more closely related to modern day building codes. If the home is much older but has recently been renovated, investigate exactly what those modifications were and for what purpose. Was the kitchen simply remodeled or was the roof replaced? If a critical component of the structure was reconstructed, was it out of preference in correlation to other modifications or necessity? It is important to also recognize the extent to which it was conducted with respect to entire replacement or simply a patch job. The next aspect of review is the magnitude of alterations. Will you be modifying internal layouts or adding on additional areas? Those factors will be highly dependent on structural integrity which often are not sufficient in their current form. Lastly, ensure your budget will account for overruns, as there are many items that are unanticipated and will need to be retrofitted accordingly. Even when conducting a full gut rehab, there are always surprises that arise due to the nature of working with existing materials and extraneous factors.
Be realistic
Construction is a domino effect, therefore you must think in practical terms. Anything that is modified will have an impact somewhere else. This can be as miniscule as repainting a room that now outdates an adjacent one, or as drastic as overburdening structural bearing capacities. There are also unaccounted items that may arise during the construction process that were not foreseen but need to be addressed, causing further scheduling delays and budget constraints. We spoke with several builders who were featured as Westchester’s Top Developers at the Westchester Magazine 2022 Gala about their views on the topic. One builder who specializes in large-scale renovations noted “Regardless if you have a client involved or not, there are always obstacles that arise. It is the nature of the business, which is why you need a credible team who can identify and solve issues as they arise expeditiously.” Another builder, KOSL Building, who won the Best Custom Home Builder in Westchester award at the event, provided their perspective. Stating that “We build for purpose and permanency, which is why we need to know that we did the work ourselves. Having extensive warranties, the only call we want from our clients is ‘Happy New Year’ or a referral. We have done many large renovations but always advocate for new construction, that way we all know exactly what the client is getting, on budget and on time.” They further explained how sometimes clients may request for creative value engineering such as keeping an existing foundation or reusing materials from a demolition. “It all comes down to safety and feasibility. New construction goes through settlement periods where the house acclimates to new bearing loads and changing temperatures, this can have negative impacts on existing materials which would then result in greater costs and time to mitigate.” A few other builders also mentioned that those who advocate for renovations usually do so for predatory purposes, knowing that inspectors and other third-party affiliates will raise issues with existing conditions, resulting in change orders being issued to the owner, inflating their budget beyond initial expectations. These vulture-like tactics can be negatively compromise property owners, which is why consulting reliable professionals and engaging an experienced development team is key.
Set practical goals
Renovations are a standard in the industry, however depending on the level of magnitude one is intending to pursue, new construction will usually be the more efficient route. There is always more than meets the eye when it comes to construction, making transparency and viability fundamental to accomplishing the vision.
Would you prefer to renovate or build? Comment below!
