This week’s report takes an insider’s look at the most common mistakes that homeowners make when planning a renovation. Any one of these errors can push costs through the roof yet, for some reason, most people think it will never happen to them. Read on...

Most people have insufficient knowledge to plan renovations... so the biggest problem they face is who to turn to for help? With an industry made up of architects, architectural designers, interior designers, design-build contractors, renovation contractors and general contractors, the choice is not easy.

But what about the planning that needs to take place before designers and contractors are called in? It is this critical phase that gets overlooked... and where you can loose the battle before it’s begun.

The less you understand about your renovation, the more your project will cost. Guaranteed!

It’s not that you need to know how to hang doors or install light fixtures. It’s to know how to get information that will tell you what to expect, what to do and what to avoid. While the information in magazines feeds the dream, the gap that exists between dreams and reality is where most homeowners loose the opportunity to capitalize on the most valuable asset available... solid, unbiased information.

Preparation is the least costly part of any renovation. It can save you money in the beginning, at the end and for years thereafter. And as renovations are essentially solutions to problems, the best way to prepare is to clearly define what you want solved. You’ll find it will be one or any combination of the following:

• Insufficient space              
• Functional inconvenience              
• Outdated esthetics and/or finish           
• Repairs or maintenance

The next step is to examine all possible solutions for your particular needs. You’ll find the results of this research extremely rewarding when it comes time to talk to a designer.

It is sometimes easy to confuse minor improvements with major home renovations.

Minor improvements are things like painting, refinishing floors, building a deck or replacing a roof. Many homeowners have undertaken such projects themselves by doing their own work or hiring a contractor to do it for them.

By comparison, putting an addition onto the back of your home or renovating your kitchen requires multiple contractors... not to mention multiple decisions in materials and design. To apply the same approach to estimating this type of project as you would to repairing a roof is a really big mistake. 

Mistake #4: Starting without key decisions.

Renovations that get started without key decisions having been made are a very bad risk. Any changes ­ required or requested ­ occurring after a project begins, can cause serious delays, needless expense and a great deal of anxiety and stress.

The challenge is to have as few midstream surprises as possible. For this to happen, high-risk areas need to be identified before the design stage, so that only a small reserve is needed for the truly unexpected.

What people often fail to realize is that work to one area affects other areas. For example, changing the location and width of a door affects the walls, flooring, casing, plaster and painting. It can also impact wiring, ductwork, water lines and plumbing stacks. All that... from just one decision on a door!

Many homeowners think renovations begin with a floor plan and end when they’ve agreed on a price. As a result, 60% of projects go out of control and over budget in no time at all.

I’ve seen people purchase a home in which the furnace needs replacing. The first thing they do is go out and buy one. Next, they decide they want an addition. Guess what? The new furnace is inadequate for the space they want added... resulting in waste of money!

The mistake here is having no masterplan ­ a complete list of all the improvements they wish to see in their home ­ spread over any time period with which they feel comfortable.

The first stage may be finishing a basement. Later it could be upgrading the kitchen, then redoing the main bathroom and finally, adding a main floor family room. The point is to do a complete assessment of your home and make a masterplan... including replacements, repairs, improvements and additions. Then establish timing priorities for each phase of the work.

People have no idea that there’s a 60% chance their renovation is going to be over budget by thousands or tens of thousands of dollars. And after the fact, they will never tell you it was because they failed to set a budget in the first place.

The truth is, there are no problems in a home that money can’t solve... and it’s for this reason alone that the single biggest mistake any homeowner can make is to begin planning without setting a budget.

But surprisingly, this is exactly what most people do. They hire a designer or architect to draw up some plans and then hope contractor estimates come in at an affordable price.

Yes, money is a sensitive issue... and this is especially true when it comes to home renovations. This sensitivity shows up in a game called "tell me how much it’ll cost and I’ll then tell you how much I’m willing to pay." It’s the surest way to waste time and kill dreams.

People think that by revealing a budget, costs will immediately expand to eat it all up. Likewise, they believe that by hiding their budget, they may be quoted a lower price and still get a good job. But it just doesn’t work that way. Dreams can only be realized ­ or kept within reason ­ by the amount of money they’re willing to spend. If the amount is unknown, who knows what plans they’ll be handed for costing!

Once plans are prepared, it has become common practice to submit them to contractors for free estimates... but what comes back are merely per-square-foot "guesstimates". Final bids prove to be substantially higher, because there are far too few details on design plans alone.

Without fully developed plans ­ including clearly defined specifications ­ no contractor can accurately price the project... which makes free estimates worth no more than they cost.

Only with a definite budget ­ set in advance ­ can you confidently deal with i) designers and ii) contractors in negotiating the best price possible.

Failing to recognize the importance of design, some homeowners hire an "inexpensive" designer to help keep costs down. The thinking goes something like this: "I have no idea what this is all going to end up costing me and I don’t want to spend too much up front on design to find out!"

In fact, less cost up front may end up costing more down the road because, all things being equal, it costs no more to build good design then it does to build poor design. Yes, it’s true that over-design can cost money unnecessarily, but over-design isn’t good design... nor is it design that’s been prepared to a budget.

The thing to remember is that good design is the basis on which quality is built. It looks good, feels good and wears well over time... whereas poor design means results that prove to be less inviting than they looked on paper. And no amount of expensive finish can make up for the difference.

The talent of the designer in blending colour and light with form and function is of paramount importance to every home renovation.

A well placed window that takes full advantage of morning sunlight costs no more than a window that misses the sun entirely. While you could have enjoyed mornings in your breakfast room, drinking coffee and reading the newspaper, poor design denies you the chance.

Who’s is the best person to design your renovation? For some projects, a good drafting service should be more than enough. For others, it’s an interior designer, an architect, an architectural technologist or maybe a renovation contractor. There’s no right or wrong answer... as long as the professional you pick can show proof of success with exactly the kind of project you have in mind.