Home Remodeling: DIY or a Big Check?

Nesting- def: the tendency to arrange one’s immediate surroundings, to create a place where one feels secure, comfortable or in control

I had an epiphany about nesting the day that I gave birth to my third child- I was not yet aware that I was in labor (he wasn’t due for 3 weeks), but I found myself manically sweeping my apartment — and what woke me out of my cleaning trance was that I couldn’t bend over to hold the dustpan on the floor (I was enormous!). I wondered what in the world was compelling me to do this work, when I really detest housecleaning, and the floor wasn’t particularly dirty. Just as I was able to formulate this question in my head, the first pain indicating I was now in labor happened. It was the first realization that I had that nesting was as much about instinct as it is conscious thought.

For many people, now that the weather is beginning to turn warmer, there is a surge of home improvements that are on the agenda. Some of that may be instinct, tapping into the early history of our species when we needed to manage our lives according to the ebbs and flows of nature. But it seems it is not only the birds that are focused on their nests! Whatever the reason, there are naturally questions that follow when we embark on enhancing our homes or our surroundings, such as:

1) Am I looking to do major, or minor home improvements?

For most people who own a home, it is the single largest investment they have so making the right fixes to increase its value can make sense. Therefore, the equation of whether to make an investment is:

Happiness from the improvement + Actual value appreciation from the improvement = Cost of the project (both monetary, time and overall hassle)

If you are renting, investing in upgrading your surroundings may still make sense- it’s just that there is no appreciation that will accrue to you, so the element of ‘Happiness’ in the equation needs to be that much bigger for an equivalent project for a homeowner to make it worthwhile.

It also depends on why you are doing the project. If you are thinking of selling your home soon, then factors like curb appeal are really important, and investing a bit more in things like your landscaping may make a big difference in sales price.

2) Am I going to do the physical work myself or hire someone?

This question is equal parts about skill level:

A) Do you know how?

B) Cost — can you afford to hire someone else?

Irritation in dealing with having people in your home also factors in, but it depends on the project.

I have had two experiences with this that have basically made me averse to all but the most necessary home improvement projects:

Experience #1: As a teenager, my father had rental property. It was the early days of his investing life, and all the repairs had to be done by our family- there wasn’t extra money to hire people to do the work. These properties weren’t particularly nice- they were multi-family dwellings in some fairly rough neighborhoods in the greater Boston area. I learned how to sheet rock, lay linoleum, paint (walls, ceilings, anything) and basically do work that involved brute force. I am glad to have these skills, but I didn’t love the work so I am definitely not one who loves DIY home projects. Been there, done that- had enough!

Experience #2: As an adult, my apartment had a really old parquet floor. It simply had to go, so we hired someone (I don’t know how to put down wood flooring- and frankly, don’t have the time to do it anyway). The workers were lovely and professional, and I loved the result — but I couldn’t use my living room, kitchen and dining room for a week. Not a big deal? Perhaps, but enough to make me say “I can live with the yucky flooring in the rest of the apartment”- which is still there.

3) How am I going to finance the improvements?

My father always told me to only borrow money for appreciating assets. Generally speaking I agree — and even then it really depends. But the bottom line is that understanding whether you can afford to do these repairs, and what adding to your debt burden (or taking away your emergency fund) will do to your overall financial picture is critical. Sometimes it is hard to get the full picture. At Pefin that is one of the most important things we provide — the context of how financial decisions we make impact us today, and in the future.

4) Is it better to fix up the home I am living in or move?

Depending on how extensive the repairs will be, it may make sense to move- but other factors such as whether you are starting a family or the kids are about to fly the coop, are all relevant in making this decision. What also matters is how much you love your home- some decisions come from the heart as much as from the bank account (just make sure that you won’t be jeopardizing the other things that are important to your future!).

I am also a big believer in starting small- if you really just want a change of scenery, maybe a reboot of the veneer is enough. If you want to increase the value of your home, there are plenty of articles like this one with great tips. At the end of the day, creating the nest that is right for you now — and that fits within your plans for your future — can be life enhancing. Enjoy!