Home renovations can be extremely costly. For that reason, many Canadians wonder if they can be their own general contractor to save money. But is that really the sound financial decision people think it is? According to a 2021 CIBC Survey, 34% of homeowners completed renovations in 2020. Another 31% planned to make upgrades in 2021. Of those Canadians, 71% funded their renovations with savings.
These days, with the incredible increase in lumber prices, and the lowest existing housing supply on record, it might not be a bad idea to go the do-it-yourself (DIY) route. But, at times, it can prove to be more expensive and more time-consuming than you realize.
One study found that, on average, Americans will spend five hours of trial and error on a DIY project before calling in a professional to help. Yet, of those same respondents, 57% wish they could go back in time and call a professional before they started.
Let’s take a look at whether DIY renovations and becoming your own contractor are worth the time and money, or if hiring a general contractor makes more sense for you.
What Is the Difference Between Being Your Own Contractor and Hiring a Professional?
A few factors can become difference makers when determining whether you should attempt a DIY project or hire a professional.
#1. Skillset
Having some background in home renovations or building can be a huge pro in doing a DIY renovation. This was the case for Ameena Steininger and her husband. The couple completed a full renovation on their 2-storey home that they purchased in 2016 in Balgonie, SK. Given that her husband had worked in home building and his father was a carpenter, he had the background and support system to complete most of the jobs on their own.
“Attempting to do it yourself with minimal knowledge can end up costing a lot more in the long run to fix,” says Steininger. But, because of their knowledge and skillset, Steininger and her husband could complete their renovation in six months.
#2. Knowledge of Permits
When you do any major home renovation, you need to ensure the requirements as far as permits go. Typically, you will need a permit to build a new accessory or structure larger than 10 square metres, make any structural alterations to a building, and build a garage, porch or balcony.
This is only a small list of what types of home renovations require a building permit. So one thing to consider when determining whether you can be your own general contractor is whether you’re able to do the research and work required to secure these permits.
#3. Tools and Equipment
Another consideration for DIY projects is whether or not you have the appropriate tools and equipment to complete the work. If you’ll have to buy or rent the equipment you need, will the cost be more affordable than hiring a general contractor? After all, they’ll already have the necessary materials required to complete the job. These questions are good to ask when mapping out the potential budget and time it will take to complete the renovation as your own general contractor.
#4. Time to Do the Work
Although you can save money, you won’t always save time. For Audrey Horton, a homeowner in Knoxville, TN, painting her lower kitchen cabinets felt necessary.
They were installed in the 1980s and didn’t match the upper cabinets. So, rather than hire a professional painter to do the job, she chose to go the DIY route to save some money. But, the workload was more than she had hoped. She skipped the bulk of the painting and only finished priming the cabinets.
“They look great from far away, but up close, it’s very easy to see it was a DIY job,” says Horton. Knowing what she knows now, she says you should always assume these types of jobs will take longer than you anticipate.
#5. The Cost
Lastly, and most importantly, determining the difference in cost between DIY and hiring a professional is a significant factor. Steininger admits this was an extensive conversation that required a lot of patience. “We comparison shopped for a lot of large purchases, like flooring, in order to save money,” says Steininger. “We sat together and made priority lists to ensure we spent the money where we wanted.”
How Can You Estimate the Cost of a Home Renovation?
As always, the best way to plan for any home renovation is to do the math. Create a budget with all of the potential costs for materials and labour, and of course, remember to buffer in any surprise expenses that could pop up.
Certain factors will influence the cost of your renovation, including:
- The age of your home
- The size of the space you’re renovating
- How complex the project is
- Your timeline
- The quality of the materials
- Surprise expenses: permits, design fees, unexpected mistakes
- And of course, who you hire
Rather than just sourcing the internet for average renovation costs, one option to estimate the cost of your renovation project is to speak to a professional contractor and ask them for a quote. Don’t be afraid to ask them how realistic it is to do the task on your own, either. Although they might try to encourage you not to, you may still get some helpful advice in the end.
You can also head to stores to start to get a baseline of what materials you need and how much they cost. That way, you can keep an eye out for sales and slowly build up your required equipment to get the job done, especially if you aren’t on a tight timeline. Just remember, when you’re doing the cost breakdown, you should also include how much time you’ll spend working on the project as a consideration.
What Renovations Are Best to Complete as DIY Projects?
If you’re curious whether or not some home renovations are best-done DIY versus hiring a general contractor, there are some factors to consider. Emily Murdock, a Canadian Residential Appraiser (CRA, P.App), says it is extremely easy, unless a homeowner has a high skill level, to tell when a renovation was attempted by either a homeowner or “lower-end” contractor or handyman. “There are often loose ends or final details that are incomplete.”
If you’re trying to choose what projects are in your wheelhouse, she suggests that aesthetic details or storage solutions are a good option because little can go wrong and often, mistakes are small and can be corrected. “But, it’s also important to gauge your skill,” says Murdock. For example, tiling a fireplace or a backsplash may feel within your grasp, whereas tiling the floor of a high traffic area is a bit too complex.
According to the CIBC survey, these are the top five renovations undertaken by homeowners in 2020:
- Essential home maintenance: 54%
- Landscaping: 45%
- Bathroom renovations: 32%
- Decorating: 26%
- Kitchen renovations: 24%
Another consideration is whether the renovation you’re planning to do it in an attempt to increase the value of your home. Before you do that, Murdock has a couple of good rules of thumb:
- Be careful not to over-improve. Faucets made of gold will likely not return that cost in a neighbourhood where the median income is $65,000 a year.
- Cost does not always equal value. You will rarely get back the amount you put into renovations, especially in slower markets, or unless you do extremely low-cost renovations like the “Airbnb flip” that has become exceedingly popular in recent years.
Ultimately, Murdock says she would never recommend a homeowner do any renovation before selling their home unless it’s to fix a deficiency that could negatively affect the sale price. “Grey paint has done more to sell homes in the past two years than any $30,000 bathroom renovation has,” says Murdock. “What we can’t control affects house value much more than the things we can.”
How Do You Decide if You Should Hire a Contractor or DIY a Renovation?
Home renovation projects can be exciting when you decide what you’d like to do to make your space more fun or livable. But, when it comes to the question of “Can I be my own general contractor?” the answer might not be as much of a thrill.
We made a flowchart to simplify a tough decision to help you decide whether this is a realistic option for you.
Owning a home can be a costly experience, particularly if a handful of updates and improvements need to be done. But, just because there are expensive projects to be done, that doesn’t mean the best course of action is to attempt the cheapest fix possible. Instead, be realistic with what you can afford and whether or not that cost is made easier as a DIY project or by letting go of the reins and hiring a professional.
