Interview with Kari Hutchinson, REALTOR®
What are some things to consider before deciding to renovate an inherited home?
The two biggest questions you can ask yourself are: How big is the project going to be and is the project affordable? If you can't renovate it properly or you can't afford it, then you're gonna have to think about turning around and selling it or living in it as is. And sometimes you can’t live in properties you’ve inherited because they're just inhabitable.
What are some common mistakes that people make when renovating an inherited home and how can they avoid them?
The biggest mistake we’ve seen are people tackling huge projects all at one time. If you're not used to doing something like that, don't start ripping out the kitchen, and the bathrooms, and the family room at the same time unless you're prepared. Depending on how much you know about the renovation process, which for most people inheriting a home it’s the first time they do anything on a re-renovation, just pick one project at a time.
How can an individual determine whether a renovation project is within their budget?
Take what you want to get renovated and do price outs on certain things. For example, if it’s a kitchen, you can check prices for cabinets, counter tops, changing walls (layout of the kitchen) etc. It’s smart to get with different contractors and work those numbers before you start doing demolition on stuff. That goes for any room in the house.
When is it appropriate to call in a professional contractor for a renovation project? And what would be the difference between a professional and DIY in resale value?
If it's changing the paint or other cosmetic things within the home, DIYing is perfectly fine. But once you get in the backbone of certain things like changing plumbing, walls, or electrical, you should seek out professionals because, if not, it could be bad when you try to sell that property later on. Those things need to be permitted. Always get a second, expert opinion as much as possible. It doesn't cost you anything to have someone come in and give you an estimate.
How can an individual ensure they're not over improving the inherited property and spending more than they would get back in resale value?
You’ll probably overdo what is within the area because one, it's probably an older neighbourhood that you inherited and a lot of your neighbors have probably not redone their homes. In terms of renovations, do what you like, but know what's happening within that market frame. Especially if you’re planning to sell this house within two years. If you're not gonna sell the house until 10 years down the road, I wouldn't worry about it so much.
How would you balance your personal style and the preferences of market appeal in that renovated home?
You're going to live in the house, so you want to put some personal touches on the home, but you also need to see what’s mainstream. There needs to be a balance of both.
Are there any tax implications associated with renovating an inherited home?
You would have to talk with your tax advisor or family attorney on this one.
What are some alternative options for an inherited property that might not be suitable for renovation?
Seek professionals to know the implications there might be do to the property being inherited. But other options could be to rent, sell, or Airbnb, all dependent on the location.
What’s a must when going into DIY renovations on inherited homes?
Do an inspection before you start doing the renovation to see if there are any major items that are health and safety things that you should fix anytime before you start renovating the house. Those need to be done immediately. Lastly, don’t overdo yourself.
On the hunt for an investment property in Colorado Springs or the surrounding areas, contact Kari Hutchinson of the Dream Property Team here.