The Common Renovation Mistake HGTV's Mike Holmes Warns Homeowners About

Renovations are a big undertaking that can be time consuming and expensive, but they're worth it to create the house of your dreams. HGTV Canada personality and renovation expert Mike Holmes has been in the remodeling business for decades and knows the best tips and tricks for a seamless home renovation. Cost is one of the primary concerns and considerations when it comes to remodeling projects. And to keep renovations free from unnecessary stress, Holmes advised to never put down more than 10% of the cost at one time. 

"Everyone needs to pay in milestones," he told Realtor.com. This assures that the contractor will not take advantage of you by running off with a large sum of your money before completing the work properly. For the same reason, it is also wise to pay for each aspect of the project as they are completed in real time. Paying per completed aspect will let your contractor know that you are keeping track of progress. It will prevent you from unnecessarily overspending and will help keep your budget in tact even if unexpected costs come up throughout the project. Holmes added that homeowners should pay the complete amount only after the project is approved by a building inspector. Therefore, the homeowner will know that their renovation was done correctly and completely so the transaction can serve as a conclusion for the project.   

Clear and frequent communication between the homeowner and laborer is mutually beneficial for everyone involved in the renovation project. You'll need to work with contractors to get what you want, so start by establishing a reasonable rate that is agreed upon by both you and the contractor. Let this guide you through the rest of the project to keep everything on track. Create a schedule for payment right after you and your contractor decide on a rate and payment method. This way, both parties know exactly when the next payment will occur, leaving less room for miscommunication. Changes and updates will likely need to be made to the overall project timeline, and paying only 10% at a time will ensure that your money will not be overtaken. It makes the investment purposeful at every step and prevents the possibility of overpaying. 

No one wants to spend more than they originally planned on a home project. Especially as costs for materials continue to rise, Mike Holmes says to be extra vigilant. "This is a time that you can really lose a lot of money if you're not careful," he told Realtor.com. So long as you take Holmes' valuable advice to space out payments and not go over 10% in a single installment, overspending is less likely to happen.