Remodeling 101: Part 3 - Budgets

Part 3: BUDGETS

The most common question that I receive when I meet clients during the initial consultation of any renovation project is, "How much is this going to cost?". This is not a question that can be answered on the spot. There are many variables that go into estimating any construction project and it is important that the contractor is able to do their due diligence before disclosing cost figures. It is one of the reasons why people are told to get multiple quotes. You would be surprised how much estimates can vary from one contractor to another. 

I like to know my client's budget up front. However, finding this out, is more often easier said than done. People are hesitant to disclose their budgets up front. I understand this mentality... The client is concerned that if they tell the contractor their budget is $15,000 and the actual cost is around $10,000, the contractor will automatically bill up to the client's budget and pocket the difference. I am not saying this doesn't happen, however, if you have done your research and hired a reputable contractor it most likely will not.  

I have had several projects in which I was able to come in under the client's budget and others in which the customer had unrealistic expectations of what their desired improvements would cost. In either situation I can explain and justify the costs and offer solutions to reduce the costs if need be. 

Here are two examples:

Client A (under budget) - Wanted his bathroom remodeled for around $7,000. He received multiple estimates from other contractors for around $10,000 but couldn't justify spending that amount of money on "such a small bathroom". After meeting with both him and his wife and discussing their expectations Investcove was able to complete the job for around $6,300.

Client B (unrealistic expectations) - Wanted her 2,500 square foot home completely renovated including a full gourmet kitchen, custom laundry room, two bathrooms, removal of existing tile and installation of hand scraped hard wood flooring throughout, brand new impact windows and doors, interior and exterior paint, and filling a sunken living room in with concrete. This was an extensive remodel that included heavy duty plumbing and electrical work. In addition, this client chose very high end and expensive materials. She did not disclose her budget upfront but we later found out that she estimated all of the work to cost around $70,000 which was about $30,000-$40,000 less than the actual costs based on her material choices. 

Client A was obviously happy because their remodel came out around 10% less than anticipated. They had a feeling that $10,000 was too much money for their bathroom remodel and they ended up being right. The fact that we knew their budget upfront allowed us to suggest materials that we knew would be conducive to their budget and in this case even came in under budget! This doesn't always happen but we definitely always try. 

Client B was panicked because she received the estimates and was shocked by the pricing. In this case, if she had disclosed a $70,000 budget up front we could have sat down with her and explained why it was unrealistic and how we could get the costs down to where she wanted them to be. 

If you are considering a remodel but have no idea what things costs or what your budget should be here are some suggestions to point you in the right direction:

1) Ask around - Talk to your friends, relatives, and neighbors. Talk to anyone who has completed a remodel in the past year and ask them how much they spent. I know, I know... this is not the most comfortable conversation to have but if you explain why you are asking they will be more than happy to help.

2) Google - Go ahead! You know you Google everything else. Google, "bathroom remodeling costs" or "cost to install new flooring" and read some of the message boards to get an idea of what things costs. As with everything else on the internet... keep an open mind and take everything with a grain of salt!

3) Research - Look at some of our earlier posts on HOW TO: Hiring a Contractor. Do your research and only call contractors that are reputable. Receive recommendations from friends or other trades that you do business with. Make sure they have a portfolio and ask them about their experience in project management and working with budgets.

4) Pictures - Have inspiration pictures for your contractors when they come to the initial site visit. There are multiple ways to achieve one look and pictures can help your contractor guide you in the right direction for your desired outcome and budget.

5) Full disclosure - Tell the contractor your budget. By now, you should have honest and reputable contractors in line and you need to trust that they will do everything within their power to provide you with the best possible pricing. 

6) Trust your gut! - I think this is true of everything in life... trust your intuition! If you have a bad feeling about a contractor then leave it at that and do not do business with them. On the other hand, if you have a good feeling about a contractor then you should probably trust that you are making the right decision! 

If you have any questions on construction budgets please feel free to leave a comment or you can head on over to our Facebook page and post to our wall or private message us! 

https://www.facebook.com/Investcove

Blog post by Aja De Los Santos, GM & Head Designer at Investcove Properties

Remodeling 101: Part 2 - Bathrooms

Part 2: BATHROOM REMODELING

A typical bathroom remodel takes 2-6 weeks, depending on complexity. This overview includes the most common elements of a bathroom remodel. It is important to review and understand these elements in advance before hiring a designer and/or contractor. This will help the professionals you work with create a design and project overview within your budget and time frame.

• What is your budget for this project?
• As mentioned in our previous post, it is important to discuss your budget with your contractor and/or designer. A qualified design/build firm will have experience in working with budgets and be able to guide you in the general direction to meet your needs. They will not increase their fees to match your budget or try to convince you to increase your budget. They will explain to you if and why your budget is on target or unrealistic. 
• What is your goal for the remodel?
• Are you looking to update, add space, or both? What is the ideal bathroom you envision yourself in?
• Technical aspects of the bathroom remodel include:
• Current square footage and desired square footage.
• Will your project require an engineer or architect? Most likely you will not need either unless you are moving walls and/or the ceiling.
• Does your project need to be permitted? Your project will require a permit if you are moving electric and/or plumbing. Check with your local municipality for permit regulations. Your contractor/designer will be able to advise you on local rules and regulations.
• Your designer/contractor can help you with these technical aspects but having a general knowledge of what may come up in your initial conversation is very helpful to both parties.
• Other elements of the bathroom remodel include electrical, lighting, walls, plumbing, windows, doors, shower/tubs, toilets, vanities/cabinets, counter tops, sinks, and flooring.
• Electrical - Will you need a service upgrade? Do you need a sub panel? How many outlets and switches will you need? Would you like your lighting on a dimmer switch?
• Lighting - What type of lighting fixtures would you like? Do you want recessed lighting and/or flush wall mounted lighting? 
• Walls - Will you need any wall paper removed and/or installed? Would you like the walls textured or smooth? What color and finish of paint do you envision for the walls and ceiling?
• Plumbing - Will the plumbing need to be upgraded and/or relocated. Most of the time, I advise my clients that we will be upgrading their plumbing behind the wall. The reason for this, especially if it is a newer home, is that the builders use inexpensive materials that are no longer sufficient. 
• Windows - Are there any windows that need to be removed, moved, or installed?
• Doors - Are there any doors that need to be removed, moved, or installed?
• Showers/Tubs - You will have to decide if you would like a tub/shower area or shower area only. If you would like a tub what type/color would you prefer? Do you want tile on the floor or back splash  Do you want a tile listello (this is the decorative band that runs around the shower walls)? Do you want a nook for your shampoo/soap? What type of materials would you like? Pattern? Tile Size? Grout color? Do you want an installed bench? Do you need grab bars? Do you want a glass door? What type of faucets would you like?
• Toilet - Will you be keeping your existing toilet? If not, what make, model, and color?
• Vanity/cabinet - Will the vanity be custom ordered or pre-built? What type of material, color, and stain? What door and drawer type? What type of accessories (knobs, pulls)? 
• Counter tops - What type of material and finish? What type of edge detail? Would you like a back splash?
• Sinks - How many sinks? What type of sink? What color and finish?
• Flooring - What type of flooring materials? Would you like a tile, wood, or PVC baseboard?

These are the questions your designer/contractor is going to ask you when discussing your bathroom remodel. Look at your existing bathroom and write down what you do not like. Then look at pictures and decide on the type of bathroom you would like. Talk to your designer/contractor about your ideas. Be flexible and understand that they are professionals in their field and want to help you achieve your vision. They will explain what can and cannot be done and why. You can then, together, come up with a solution and plan for the bathroom remodel.

Blog post by Aja De Los Santos, GM & Head Designer at Investcove Properties 

Remodeling 101: Part 1 - Kitchens

Part 1: KITCHEN REMODELING

A typical kitchen remodel takes 6-8 weeks, depending on complexity. This overview includes the most common elements of a kitchen remodel. It is important to review and understand these elements in advance before hiring a designer and/or contractor. This will help the professionals you work with create a design and project overview within your budget and time frame. 

• What is your budget for this project?
• I have worked with several clients who are reluctant to tell to me their budget. This is understandable as many contractors will bump their fees and estimates right up to the client's budget limit, however, most honest and reputable contractors/designers do not do this. It is important for me to understand a client's budget because it helps me shape the project within their parameters. I have had instances where we are able to complete the project for far less than the client expected as well as situations where the client's budget is completely unrealistic. 
• What is your goal for the remodel?
• Are you looking to update, add space, or both? What is the ideal kitchen you envision yourself in? The contractor/designer wants to give you everything you want so it is important that you thoroughly understand what you would like to achieve with your project.
• Technical aspects of the kitchen remodel include:
• Current square footage and desired square footage.
• Will your project require an engineer or architect?
• Do you need any walls removed?
• Does your project need permitted?
• Your contractor/designer can help you with these technical aspects but having a general knowledge of what may come up in your initial conversation is very helpful to both parties.
• Other elements of the kitchen remodel include electrical, lighting, walls, plumbing, windows, doors, cabinets, counter tops, sinks, flooring, and appliances.
• Electrical - Will you need a service upgrade? Sub panel? How many outlets and switches are there and how many will have to be installed?
• Lighting - What type of lighting do you want? Recessed lighting or mounted lighting?
• Walls - Are there walls that need to be removed or moved?
• Plumbing - Will the plumbing need to be upgraded or relocated?
• Windows - Are there any windows that will need to be moved, removed, or installed? What type of moldings will be installed around these windows?
• Doors - How many doors will need to be moved or installed? What type of doors? What type of moldings?
• Cabinets - Would you like your current layout replaced or redesigned? What type of cabinets would you like? Custom? Semi-custom? What type of color and finish will the cabinets be? What type of drawers and doors? Will there be any custom built-ins?
• Counter tops - What type of counter top material would you like? What color? What type of edge detail? Will there be a different type of back splash installed?
• Sink - What type of sink? Under mount? What size sink? What type of faucet?
• Flooring - Will flooring need to be removed? If so, what type of flooring would you like installed?
• Appliances - What type of refrigerator, disposal, range/oven, range/hood, dishwasher, microwave would you like? What are the sizes?

Your contractors/designer is going to ask you all of these questions in detail. You will be able to go over everything with them at the time of your consultation, however, understanding all of the aspects and technical details of your remodel ahead of time will help you to achieve the best results. Investcove Properties provides there clients with a remodel work sheet prior to the initial consultation. This helps prepare the client for the types of questions that will be asked of them.

Blog post by Aja De Los Santos, GM & Head Designer at Investcove Properties

Interior Design vs. Interior Decorating

The National Council for Interior Design Qualification (NCIDQ) explains that while many people use the terms "interior design" and "interior decorating" interchangeably, the professions differ in critical ways. If you are contemplating remodeling and/or redecorating and considering hiring a designer and/or decorator it is important to understand the fundamental differences and how each professional may be able to help you with your project. 

Interior designers apply creative and technical solutions within a space that are both functional and attractive to the customer (NCIDQ). The interior designers job is to understand space and both its potentials and limitations. The interior design process includes understanding of architecture, engineering, and construction. A quality interior designer will be able to explain a room's function and what may or may not be changed. 

Scenario: Nancy and Bob are interested in updating their kitchen. They would like to make their kitchen larger in order to incorporate new cabinets and an island. Nancy would like the sink to be moved from an existing wall into the new island. Nancy and Bob call Mary a kitchen designer they were referred to by friends. Mary is an interior designer who specializes in kitchens. Mary explains the process of expanding the kitchen, installing an island, and moving the sink. Although she is not a contractor, she has enough fundamental knowledge to understand what will and will not work with Nancy and Bob's new kitchen design.

Example: Below is an example of interior design at work. Let's say this is Nancy and Bob's kitchen before and after. While the before and after layout is somewhat similar it is apparent that an interior designer was involved in the process. This designer squeezed the most potential out of this kitchen by adding cabinets, installing more functional appliances, creating and updated look, moving electric to create more light and aesthetic appeal, and extending the space with a misshaped island which works very well here. 

Interior decorators are not involved in the layout of the space. They are generally hired by homeowners, developers, and commercial buildings to create a look that is both desirable and comfortable. Decorators help their clients in choosing furniture, fixtures, fabrics, and miscellaneous decor. There are also instances where the interior decorator will help choose lighting fixtures and paint colors although interior designers can do this as well. 

Scenario: Nancy and Bob absolutely love their new kitchen! One night Nancy comes home from work and goes to her bedroom to change into her sweats. She goes to the kitchen where Bob is cooking dinner (how great is Bob!) and tells him that she loves the kitchen so much but now the bedroom just feels blah! They know that they will not need to move any walls around or change the layout so they consider calling Frank, a local interior decorator who just finished redecorating their favorite local restaurant. Frank comes to their home and gets an idea for their style and taste. Nancy and Bob would like a warm space with a relaxing and peaceful vibe.

Example: Below is an example of interior decorating. Again, let's say this is Nancy and Bob's bedroom. The space has not changed but it has been completely transformed by the interior decorator (in this case, Frank). The furniture placement, choice in wall color, application of wallpaper at the fireplace, and finishing pieces are all ideas generated by the interior decorator collaborating with the customer. 

Blog post by Aja De Los Santos, GM & Head Designer at Investcove Properties

A Tale of Two Clients

 

                                           Client #1                                              Client #2

These bathrooms are not in the same home. The people who commissioned me to help them with the design and construction of the bathrooms above do not know each other yet their bathrooms are now very similar. 

The bathroom on the left is a second floor bathroom in the home of good friends of mine (I always get nervous about working with friends because I do not want to disappoint them or hurt our personal relationship). They purchased their home several years back and had completed renovations on the entire downstairs. 

Client #1:

 

This upstairs bathroom was much smaller prior to renovation, had tile floor to ceiling throughout the entire bath, and had no bathtub (see above). I generally try to think of resale value when I help someone renovate their home... Their second story only consists of a bedroom/loft area and this bathroom; therefore it would be a possibility for a future buyer to use this room as a master suite. With that in mind we decided to install a double vanity with two sinks and make the bathroom larger. I also think it is a good idea to have bath tubs in any extra bathroom and since their master bedroom and bathroom is now downstairs and only has a shower I suggested putting a bathtub in this bathroom. 

We made the bathroom wider and longer in order to fit the bathtub and the double vanity. We also moved the toilet over closer to the window for a little more space (it is also more aesthetically pleasing). They really didn't have an idea for a design concept and were open to doing something a little different than their downstairs renovations (which are mostly neutral) so I suggested the Carrera marble shower and Carrera porcelain floor. They were open to the idea so we shopped for the materials and choose glass and marble materials for the listello and the back splash. They were already sold on the espresso vanity with white tops which went perfectly with the material selection. 

 

The end result was amazing and they loved it (see above). See more before and after pictures here: 

Boca Raton Private Residence Remodel

Client #2:

The bathroom on the right (at the top of this post) is a renovation I commissioned only a few weeks after completing my friends' bathroom. This client already had a vision. They knew that they wanted an espresso vanity with white shower tile, a black river rock shower floor, and blue accent materials. They have lived in their home for almost four years and have yet to use their master bathroom shower because it has never worked and has been sitting as an incomplete project (see below).

We did not make this bathroom larger but the renovations made a huge impact and the space appears much bigger now. We re-framed the shower area and installed new materials including 18" x 6" subway tile up the shower walls and black river rock shower flooring. We used the same flooring, listello, and back splash materials as client #1 which is why the two bathrooms appear to be so similar. This client went with a darker blue paint on the walls. We also removed the overhead soffit, re-wired, re-plumbed, and installed a custom shower bench and over sized nook.

Once again we achieved amazing results! It makes me all warm and fuzzy inside when my clients are happy and can enjoy their new space! 

All in all both bathrooms look amazing and I am so happy to have completed successful renovations for each client. The espresso cabinets are a trend that I am happy about because they are classic, streamlined and will most likely be around for awhile. I always gravitate towards white and/or neutral tones because of their design longevity which is why I am glad both of these clients opted for classic materials. I really love when a client expresses themselves through a bold listello or back splash choice so long as it is not too wild or trendy. If a client wants to get a little crazy with a design aspect I always try to steer them towards a bold paint color. Paint is a great way to add personal taste without breaking the bank and it is easy to change if they end up growing out of the color choice. 

Which bathroom do you like the best?

Blog post by Aja De Los Santos, GM & Head Designer at Investcove Properties

HOW TO: Hiring a Contractor Series - Part 4

PART 4: PUTTING IT ALL TOGETHER 

You did your research, you found a firm that specializes in construction and design, and you scheduled and completed your consultation(s)... You decide on the contractor/design firm that you feel completely comfortable with. They understand your vision, respect your budget, and have a solid portfolio of work. Now what???

• Paperwork
• It is important that you review all of the paperwork that your contractor submits to you. Make sure that you completely understand the estimate, contract, and initial invoice. Discuss the terms of the contract and payment schedule with the contractor so that you are both on the same page. Most contractors will ask you to sign the initial estimate noting that any changes must come in the form of a "change order" signed by both you and the contractor. This will alert you to any changes in the original estimate before the contractor starts the work. A contractor's agreement or contract will state the job description and estimated costs. This is generally an additional piece of paperwork to protect you and the contractor (see below for further detail about homeowner and contractor protection). The initial invoice will most likely contain material costs and/or a deposit for the work (see below for further detail on payment). 
• Florida's Construction Lien Law (Homeowner Protection)
• According to Florida law, those who work on your property or provide materials, and are not paid-in-full, have a right to enforce their claim for payment against your property. This claim is known as a construction lien. If your contractor fails to pay subcontractors or material suppliers, the people who are owed money may look to your property for payment, even if you have paid your contractor in full. 
• What does this mean? In short, it means that even though you pay the contractor you hire in full, if they do not pay the people who work under them you may still be at risk. You can avoid this by asking your contractor to provide you with releases of lien for every payment that you make to them. This will ensure that no other sub-contractor will file a lien on your property. For more information on Florida's Lien Law click here: http://www.myfloridalicense.com/dbpr/pro/elboard/documents/florida_lien_law.pdf
• If you do not live in Florida, check your states construction lien law for more information.
• Contractor Rights
• Contractors have rights as well. If you sign an agreement with your contractor it is important that you pay your contractor. If they complete the work and you do not pay them, they have the right to file a lien against your home which could prevent you from obtaining financing or selling your home in the future. 
• Payment
• All contractors have different payment terms so it is important that you review and are comfortable with the terms of the contractor that you hire. Everything is negotiable so if you have an issue with the payment terms and/or schedule discuss it with your contractor and they will most likely compromise. However, please understand that it is not fair to have your contractor carry material costs throughout the duration of the project. Most contractors will ask for materials up front. Realize that your contractor is paying employees and/or sub-contractors throughout the process of your project so whichever terms you agree to it is important to adhere to those terms. It is also customary for a contractor to allow the homeowner to withhold a percentage (generally 5-10 percent) of the contractor until final walk-through of the property. 

I talk to so many people who are scared of bringing in contractors and renovating their homes because they have heard multiple horror stories... "I hired XYZ Contracting and gave them a 50 percent deposit and they never showed up!" or "ABC Building left my home a complete disaster!" I promise you if you follow the guidelines I have laid out in this series you will have no problem hiring a contractor, understanding the process, and enjoying the end results! 

This wraps up our HOW TO: Hiring a Contractor Series. If you have any questions regarding this series or construction industry practices in general, feel free to email us at INFO@INVESTCOVE.COM. We would be happy to answer any questions that you have. 

1925 Historic Cottage Renovation Project, West Palm Beach, FL by Investcove

 

1924 Historic Spanish Renovation Project, West Palm Beach, FL by Investcove

Blog post by Aja De Los Santos, GM & Head Designer at Investcove Properties

HOW TO: Hiring a Contractor Series - Part 3

PART 3: FREE ESTIMATE VS PAID CONSULTATION

You have found a few companies that offer both design and contracting services. You have seen both of their portfolios and want to get an estimate from each company and then make your decision. The first company offers free estimates and the other explains that the first consultation is $100 for the first 90 minutes. You scratch your head... Why does one offer similar services for free and the other charge $100???? 

While contemplating this overwhelming renovation project and all the associated costs, you think that saving $100 could help you in the long run. I mean, free is always better, right? In this post recession madness we are always looking for a great deal. We are looking to save money anywhere we can! Look, I hear you, I am a Groupon/Living Social junkie! My husband and I literally have a spreadsheet to keep track of all of our coupons and discounts. 

I love a great deal as much as the next gal, but there are circumstances in which cutting corners can ultimately cost you more in the long run. Take the previous post... Hiring a designer may cost a little extra money up front but not only will it ultimately help you save money in other areas, it will also get you the results you hope to achieve. While renovating your home is an investment, in the actual brick and mortar of your home, it is also an investment in your emotional well being as you complete the project.

 Here are some reasons why you may want to consider paying for a consultation versus only getting free estimates:

• Beware of the "free estimate"! This is OK if you are doing straightforward work, such as putting on a roof, swapping out a toilet, or general painting projects; but if you are looking for intricate remodeling work, such as a kitchen or bathroom renovation this so called "free estimate" may end up costing you a lot more in the long run. Contractors are busy people and they are looking to streamline their work and move easily from job to job. Their time is valuable so when they are offering it to you for free there could be strings attached. Lets say you want to remodel your kitchen... You tell the contractor you want to replace your cabinets, counter tops, back splash, and redo your ceiling with recessed high-hat lighting. Most contractors will measure your kitchen and give you a price based on lower level cabinets, granite, and back splash. You sign the contract and start work only to find out that the cabinet choices they picked are not what you wanted and that an upgrade may cost you thousands more.

• Calling a contractor and finding out that they charge $100 or $150 for an estimate or more properly called a consultation may make you balk. However, the company that charges this fee not only values their time but they also value yours. More importantly, they value your budget! I know, I know, you are thinking, "How are they valuing my budget if they are charging me for our first meeting?" This is how... This contractor is going to take their time with you. They are going to listen to your wants and needs, they will help cultivate your vision, and they will explain all of the intricacies of the construction process. They will also help to frame your expectations in regards to a timeline, budget, and end result. Instead of spitting out a "fill in the blank" estimate, they will work with you to design an      estimate for your project explaining where you can expect to cut back and where you may want to splurge. They will also explain additional costs associated with certain areas of the project that may arise during renovation (plumbing or electrical behind the wall that you cannot see initially) so you can prepare for that ahead of time. And here is the good news... 99% of the time, when you hire this contractor they will reimburse your consultation fee. 

Investcove Properties charges for their consultations. We initially performed free estimates and found that most of the customers had no intention of hiring any contractor. Investors are mostly the culprits. They are trying to get a certain price from a bank on a property so they will call multiple contractors and ask for free estimates. This is a waste of the contractors time, money, and resources. It may be free to the customer but it is not free to the contractor. They must allocate their employee's time to go out to a job and write up an estimate. This process could entail more than ten hours to complete the process satisfactorily. If a client calls me for an "estimate" I will explain the consultation process. If they are uncertain about paying the consultation fee, I will set up an appointment to come out and meet with the client (at no charge) explaining why this fee is charged. The majority of the time they decide that they would like to move forward with the consultation and have no problem paying the fee. So you have to decide if free, in this situation, is really better.

Blog post by Aja De Los Santos, GM & Head Designer at Investcove Properties