In Where’s the Value? we looked at whether you’re better off buying an older home to renovate in central Toronto or buying a home that’s already been renovated. We also looked at whether there’s money to be made doing quick reno-flips in central Toronto.

Most people looking to buy a home in central Toronto these days fall into one of two camps:

• The “I don’t want to do any work at all and want my new home to be completely renovated” camp (Camp Turn Key).
• The “I know exactly what I want my new home to look like and the only way I’m going to get it is to renovate it myself” camp (Camp Renovate).

Let’s assume you read Where’s the Value? (and let’s hope our assumption is correct) and you fall into Camp Renovate. Many people who’re thinking of renovating these days seem to be under the impression that renovations are fast, easy and painless. It could be they’ve been watching tv and think an entire house can be renovated in an hour (46 minutes if you don’t count the commercials).

Renovations can never be that fast, but they CAN be relatively easy and painless (meaning on time and on budget) if you have a good contractor and everything goes your way. But Corinne and I are realists. Maybe that’s because we both have experience building our own homes so we’ve had a firsthand view of the process. We’ve also helped guide many of our clients through the process and Corinne’s married to a builder so she hears about renovating and building every day. We’re not renovation experts, but we have enough experience to know renovations aren’t always smooth sailing.

If you’re considering doing a renovation or building a new home, make sure you go into it with your eyes and ears open. Here are a few things you might not think about right away:

• Timing #1: You’re moving from your current home to a larger home. You buy your new home on December 1 and the closing is on February 1. You want to renovate the kitchen and bathrooms. You were smart enough to make sure you’d qualify for bridge financing so you can continue living in your current home while you renovate your new home, but to qualify you need to have a firm offer in place on your current home. The holidays are fast approaching. You’re scheduled to go on vacation. The market is usually pretty slow in December and January because many buyers and their agents are busy with the holidays or out of town.

Questions to ask yourself: Can you get your current home ready for market very quickly? Will you be able to sell it before February 1? What happens if you can’t sell it before February 1? Will you have to lower the price to an uncomfortable level? Will you have time to meet with contractors and designers so your reno is ready to start on February 1 or should you budget for extra financing costs because you’ll have to carry your new home for longer than you anticipated?

• Timing #2: Assume the same facts as above. You scramble like crazy, cancel your vacation and manage to sell your home in January and get your renovation organized to begin on February 1. The closing date on your current home is June 1. That gives you four months to complete your renovation so you can move from your current home straight into your newly renovated new home.

Questions to ask yourself: What happens if there’s a delay in getting the construction permits you need? What happens if the bathroom tiles you special ordered come late or don’t come at all? If the tiles aren’t there, the tile guy will go to another job. When will he be able to come back? And if the tiling isn’t done on time, the carpenter can’t do the trim. And if the carpenter can’t do the trim, the painter can’t paint. Can you see the domino effect here? These guys aren’t sitting around waiting to work on your job. They have other jobs to go to. If your job isn’t ready for them they’ll move on to the next job and fit you in later. What happens if your new home isn’t finished by June 1? You might be able to move in and live through the renovation. But it’s possible you might have to move in with relatives or into a short term rental.

• Budget #1: Your plan is to open up your new space and knock down the walls between the kitchen and the dining room and between the living and dining rooms. You have a rough idea of what this will cost because your friend did something similar.

Questions to ask yourself: Are any of these walls supporting walls? If they are, additional support will be required which will add to your costs. Is there any ductwork, plumbing or electrical supply in any of these walls? If yes, these will have to be relocated which will add to your costs. There isn’t usually flooring under walls so when you knock down a wall there will be a bare patch that needs to be filled. Are you okay with having new flooring matched as best as possible to the existing flooring or would you prefer to have a whole new floor installed? Can you afford these additional costs?

• Budget #2: You were told the plumbing and wiring were completely updated, but once the walls are opened it’s evident they need to be replaced. The basement looked dry, but once the walls are opened you can see signs of leakage and cracks in the foundation. You thought you’d be able to scrape off the wallpaper and repaint, but the plaster walls practically came off with the wallpaper so you need to drywall the entire home. There are often surprises hiding in older homes. Not only are they costly, they also add time to your job.

• Quotes: When you get quotes for the construction, remember that these usually only refer to the hard costs. They typically don’t include soft costs like your contractor’s fee, architect or engineer fees, survey if needed, permits, designer’s fees, carrying costs, etc.

• Your time: Doing a major renovation is very time consuming. You have to shop around for everything from tiles to cabinets to moulding to fabrics to fixtures and more. You have to be on site and meet with your contractor, tradespeople, your architect and others. It’s often the same as having another full time job. Do you have the time to devote to a major project? Is it worth it to you?

• Stress: On top of all this, a major renovation can produce a lot of stress in your life, especially if you’re in a relationship. Be prepared for this.

These examples are merely the tip of the iceberg –  the minor road bumps of a renovation. What happens if your neighbours object to your plans and the City won’t grant you permits to build what you’d like? Do you still want to keep your new home or will you decide to sell it? While highly unlikely to happen, renovation catastrophes aren’t unheard of. One home collapsed to the ground during a renovation. Another was demolished by an explosion during construction. A third home burnt to the ground mid-construction as a result of arson. All of these happened in central Toronto in the past few years.

We’re not saying you shouldn’t renovate. Not at all. You should definitely renovate if that’s what you’d like to do. All we’re saying is that renovations aren’t nearly as clear cut as they may appear. If you’re in Camp Renovate, make sure to have detailed conversations with your agent and your contractor before you sign on the dotted line to buy your new home and, if at all possible, bring your contractor to see your potential new home, too.

If you know anyone who’s interested in learning how the market works and who’d like to receive the kind of help that involves honest answers, straightforward advice, no pressure and being treated like family, please let me know the best way for me to connect with them because I’d like to offer them this kind of help. And as always, don’t be shy if you have any questions or comments about this post! Thanks for reading.