When we bought our home we knew we wanted to do a renovation. There are two spare “rooms” in the home (one is an office-like room, one is a large walk-in closet) that have the potential of being combined into a third bedroom. By doing so, we could increase our home value by at least $200,000.
Initial diligence at the time led us to believe that the cost could range anywhere from $50,000 to $100,000. We did not have the cash flow at that time (as we wanted to continue investing), and so we decided we would wait.
Since our son was born last year, the home began to feel a little tight, and the closets appeared less efficient. The topic of renovating was brought up again, but with no help for me at home, and also no idea how our cats would adjust, we punted.
The pandemic of 2020 represented an unusual opportunity. We would not be in our home for a very long time, thus allowing for the possibility of a renovation. My husband returned to New York City end of May to retrieve our two cats safely (during the first weekend of protests no less). While there are no doubt many challenges to managing a renovation remotely, including speed of communication and our general lack in being to see what is happening to our home, I’m also glad that I will not be living in a giant dust cloud.
This has been our timeline to date.
June 3: Got introduced to our architect via our neighbor, who did a much more complicated renovation than ours
June 6: Architect visited our home
June 13: First proposal
June 15: My husband and I redesign the scope of the renovation, due to an earlier miscommunication (this happens a lot in our marriage, we’re working on it!)
June 17: Second scope delivered from our architect, we begin paperwork for our building management to review
June 22: I sign with the architect, $3,000 upfront payment
June 24: I ask the building about how to pay the deposit when due to pandemic I’d left all my paper checks in NYC. I work on paperwork in the meantime
June 30: My building issues more paperwork
July 2: Billpay I issued via Fidelity did not work. I ask Fidelity to send checks.
July 6: All additional paperwork is completed and sent to the building engineer.
July 7: I sent physical checks. $350 for building review fee. $600 as a damage deposit.
July 9: The building engineer responds to the paperwork. We now have to file Department of Building paperwork. I schedule asbestos inspection, which is required as part of the filing.
July 13: Asbestos inspection happens. I pay $950 for the inspection
July 15: We put together the response to my building’s engineer, but need to file for the DOB first.
July 20: Asbestos results come back as negative, I work on DOB paperwork
July 21: I pay DOB filing fee, goodbye $525
July 23: We get our co-op president’s sign-off on the DOB filing paperwork (he’s a great friend!)
July 27: Likely date of DOB filing.
After this, the next steps include:
August & partially September
- DOB responding to our paperwork, and once we satisfy it, get the work permit
- The building responding to our response, and get their permission
- Contract with the contractor
- Mr. Save My Cents returns home to tidy up the apartment pre-demolition
September, October:
- Demolition
- Renovation
October? November?
- Close out the renovation with a final inspection from the DOB
- Design some nice closets
Current money spent: $5,425
Total expected budget (includes architect, contractor, paperwork fees, and custom closets): $40,000
The hope is that the renovation can complete before we move back.
How do you budget for home renovations or other goals? Find a special coupon to get Your First Budget Spreadsheet for free in my blog Budgeting: How to start with your first budget to get started with a budget that fits you.
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Wow you been busy.. lots of work ..