Final Discussion w/ Your Contractor about the Rehab Costs – During Due Diligence

If you remember we were discussing this subject back in June (Blog-June 17 or so).  So since your Due Diligence Period is close to Ending, YOU need to make that final decision.  Is this the House You Still Think It Is.?  You had your Home Inspected thoroughly by all your key vendors and now the last piece of the puzzle.  Can you Afford The Rehab and does it make sense for That Area of the city?  Here are the Topics you were to consider back in June:

  1. Is the home in a hot neighborhood (ex: Park Circle, Mt Pleasant, Wagener Terrace on the peninsula, etc.).?
  2. How much work is involved and is it more than the home will be worth?
  3. Is this a Flip or are you planning on Living there for 3+ years? 

In this case you want to stay in the home for the next 3+ years.  You are looking to update the home and add the following Rehab Items:

  1. Gut and Replace the Kitchen – this is a blog post or two on its own, as you can image
  2. Add a bedroom where a Den/Office was
  3. Do some cosmetic work like:
    • Update Dining Room ceiling – seems too low and claustrophobic and there are decorative beams across that should be removed
    • Remove all the popcorn from the ceiling and make them all smooth finish
    • Replace the carpeted areas with Wood or Wood Laminate (depending on budget)
  4. Replace the Heating and Air Conditioning – Duct-work replaced as well
  5. Update Electrical in the house, budget permitting
    • Add another Electric Box to provide some more room to expand
    • Add Grounded Sockets in Key places (budget doesn’t allow for Full Replacement)
    • Update all light switches and sockets (most switches/sockets are from the original home build)
    • Adding lighting in the kitchen (LED can lights are nice)
    • Get new (to code) hook ups for the Dishwasher and garbage disposal under new kitchen sink
    • Add new ceiling fans in all rooms since the existing ones have seen their better days (styling, etc)
  6. Get gutters installed, as the concrete slab seems to be holding more water than it should.
  7. Add gas line to allow for a Gas Stove (still having the 220 volt there for the electric oven) from the meter, through the attic to the kitchen. The home luckily has gas installed for the water heater and dryer.
  8. Add all new window treatments – blinds (thick 2 inch and curtain rods).

These are the key items on this day (in your mind), but be assured that things will change as you will find things during the teardown/rehab.  You want to get some Firm Commitment from your Contractor on Timing and Price for the above.  This is the time for you to haggle and make sure you are getting what you want and at the price you would expect.  One way to verify the numbers is to break things down into days or weeks.  What is your contractors Day Rate (for common labor or engineering type labor).?  I am not going to put solid numbers into this Blog about what It Should Cost, as every project is different.  I will try to get you some Ball Park numbers though.

Ok….next week as I explained in my last blog, I will continue to write about Making Sure you and your contractor are on the same page with Scope and Costs.