When you renovate, you’ll always end up working with people. It’s an inevitable part of the process. Now, there are things that you need to keep in mind when it comes to dealing with people around you. Some of them you might not personally encounter, and some you might directly work with. Let’s get started.
Seeing the agent as an enemy
Never trust your Real Estate Agent, right?
Wrong.
Real Estate Agents actually are key players in your grand renovation plan. How so? Well, for me, Real Estate Agents:
- Bring potential deals. And when they do, they always make sure that they create a win-win situation for the seller, for me, and for themselves.
- Second, they bring their expert opinion on the table. They’re an integral part to validating what I’ve done for my due diligence.
- Third, they fit into the renovation plan. That’s because they also know my target market and my renovation suburb.
- Finally, they help sell the property for its maximum value and at the shortest possible time.
Above all, they’re a part of my network. Without them, my ‘renovation systems’ will not work.
Not analysing your competition
In the property renovation niche, you have two primary competitors. First, you have other property renovators. Second, you have new properties. If you’re renovating in an area where you can find both, then you need to up your game and act like a business person. How? Make sure that your unique value proposition stands out.
You see, renovating with profit in mind is also a functional business. You have plans, you have systems, you have strategies, you have goals in place, and you have a team. What binds all of these together is your unique value proposition: the unique benefit that your competitors do not or cannot offer to their customers.
So what makes you different from other property renovators? What makes your product different from them? Why should property buyers choose your renovated product rather than opt for a newly constructed property?
Think about these things and factor them in your renovation plan. That way, you can sell in a timely fashion.
Outsourcing everything
How can this be a mistake when the area of outsourcing is continuously booming? Well, to put things in perspective, there simply are things that you, the renovator, can do best. After all, successful property renovation involves what I call specialized knowledge.
So that knowledge that I call specialized are those that I won’t outsource. For example, inspecting a property is something that I know I should do. Due diligence is something that I’d do. And putting together my team is something that I choose to do.
The rest of the tasks involving renovation, like invoicing and payment, can be outsourced locally or even overseas!
And one thing that I’d like you to always remember when you outsource is to make sure that it provides you leverage and that it can help you grow. Delegate menial tasks and focus on what you do best.
Choosing the cheapest contractors
I know that you’ve come across this mistake from time to time. And you know what? Its gained popularity because a lot of renovators still do it. So let me emphasise: the cheapest bid doesn’t equate to the best job. So instead of focusing solely on the affordability of a contractors quote, check what it covers.
What you can also do is to get quotes from at least three contractors and compare them. It also pays to get an idea about how much work each of them has at the moment so you’ll gauge potential turnaround time for their work.
On top of it all, you should also look for social proof of quality work. Testimonials, project shots, and professional recommendations are some of the things you can look for.
By the way, did I mention that you need to work with licensed contractors?
Confusing reality TV with reality
People who are doing renovation TV shows will also tell you this: what you see on reality TV is less than realistic.
First, property renovations don’t get completed over one weekend. It may take a minimum of 4 weeks for a single project to be completed.
Second, you don’t get a second shot at your budget. Unfortunately, the money you lose from making a mistake cannot be taken back. There are no studios to give you funds and there are no sponsors to guarantee you discounts. So it goes back to what we’ve discussed before: what you need is proper budgeting.
What you need to remember here is to always do a reality check. Stay reasonable and logical. Don’t rush things lest you sacrifice quality.
In the final installment of this blog series, I’ll focus on some specific elements in your renovation that you might be getting wrong.
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