When it comes to home renovation, cutting costs can often come back to haunt homeowners. With DIY culture and the temptation to hire the cheapest contractor on the rise, Brent Kuczynski, owner of BK Construction, warns homeowners to be cautious. “You can go cheap, but you’re going to regret it,” he says. As the leader of a growing construction company, Brent has seen firsthand how cutting corners can lead to bigger problems down the road.

In a candid conversation with Reno ROI, Brent shared his insights on why homeowners need to invest wisely in renovations, emphasizing the long-term value of quality work and materials.

The Cost of Cutting Corners

For many homeowners, the temptation to save money by hiring lower-cost contractors or managing their own renovation projects can be hard to resist. However, Brent explains that while this approach might seem like a good idea upfront, it often leads to more headaches—and expenses—down the line.

“Homeowners often underestimate what’s involved in these projects. They want to save money, but they don’t realize the complexity,” Brent explains. He’s encountered clients who tried to manage their own renovations by hiring cheaper labor, only to face issues with inconsistent work, delays, and unexpected complications.

“A lot of people try to GC (general contract) the job themselves, hiring a bunch of different subs and hoping it all comes together. The reality is, they’re taking on a lot more risk and hassle than they realize,” Brent says. “When you hire a general contractor, you’re paying for peace of mind. You’re paying for someone to manage the process and make sure it’s done right.”

Quality Materials and Their Impact

Beyond managing labor, one of the biggest mistakes Brent sees homeowners make is skimping on materials. This is particularly common when renovating high-value areas like kitchens and bathrooms. Brent emphasizes that homeowners need to think about their home as an investment. “If you’ve got a $500,000 home, why would you put cheap materials in it? You have to invest in quality if you want to maintain or increase the value of your property.”

Brent explains that using inferior materials may seem like a cost-saving measure, but it often reduces the lifespan and appeal of the renovation. “People don’t realize that by going cheap, they’re sacrificing durability and long-term value,” he says. “If you’re going to do it, do it right the first time. It will pay off when it’s time to sell.”

Understanding the Value of Professional Help

One of the major challenges in the construction industry, according to Brent, is helping homeowners understand the value of hiring professionals. In an era where DIY projects are popular, many clients assume they can save money by taking on parts of the renovation themselves. However, Brent explains that professional help not only ensures a higher-quality result, but it also reduces the risk of costly mistakes.

“I tell them upfront—I’m not going to be your cheapest quote, but I’ll be the one who gets the job done right.”

“Sure, you can hire someone off of Facebook or find a cheaper contractor, but if they don’t know what they’re doing or they don’t have the right experience, you’ll end up paying for it later,” he says. Brent often finds himself educating clients on the hidden costs of DIY or budget renovations. “I tell them upfront—I’m not going to be your cheapest quote, but I’ll be the one who gets the job done right.”

Why Renovations Are Booming in Today’s Market

A lot of people are sitting on great mortgage rates from a few years ago. Instead of moving and paying double the interest, they’re putting money into modernizing their current home,

Brent has noticed a significant shift in the housing market over the past few years. With rising interest rates and fewer homes available, more homeowners are choosing to renovate rather than move. “A lot of people are sitting on great mortgage rates from a few years ago. Instead of moving and paying double the interest, they’re putting money into modernizing their current home,” Brent says.

Home values have doubled in the last five years, so people are willing to invest more in remodeling. It’s a practical solution for those who want to stay put but improve their living space.

This trend is especially noticeable in areas like West Michigan, where Brent operates. He explains that many of his clients have homes with significant equity, making renovation a smart financial decision. “Home values have doubled in the last five years, so people are willing to invest more in remodeling. It’s a practical solution for those who want to stay put but improve their living space.”

Kitchens and Bathrooms: The Most Popular Projects

When it comes to renovations, kitchens and bathrooms remain at the top of the list for most homeowners. According to Brent, these areas are where people spend the most time, and they have the highest impact on a home’s resale value. “The kitchen is the heart of the home,” Brent says. “If you’re going to renovate one area, make it the kitchen. That’s where you’ll see the biggest return.”

Open-concept kitchens, modern designs, and high-quality materials are the most requested upgrades, Brent notes. “Everyone wants to open up their space and create something more modern and functional. It’s about making the home feel more personal and tailored to the way they live.”

The same goes for bathrooms, where clients frequently ask for updated fixtures, tile showers, and new vanities. “People want modern bathrooms that feel like a retreat. It’s about making the space more luxurious,” Brent explains.

Making Smart Investments in Your Home

Brent’s message to homeowners is clear: renovations are an investment, and you get what you pay for. Cutting costs might save you money in the short term, but it often results in bigger expenses down the road. “At the end of the day, it’s about quality,” Brent says. “If you’re willing to invest in your home and use the right materials, you’re going to get a much better return on your investment.”

His advice to anyone considering a renovation is to do their research, hire the right professionals, and be prepared to spend a little more for the best results. “Good work isn’t cheap, and cheap work isn’t good,” Brent adds. “If you want a quality renovation, you need to invest in quality work and materials.”

Conclusion

For homeowners looking to renovate, Brent Kuczynski’s insights are invaluable. As the owner of BK Construction, he’s seen firsthand the difference that quality work and materials make in the long-term value of a home. His advice? Don’t cut corners. Invest in your home wisely, and you’ll see the returns—not only in resale value but in the satisfaction of living in a home that’s built to last.

Photos courtesy of BK Construction

As homeowners and real estate investors seek to maximize the return on their renovation investments, one expert’s advice cuts through the noise: start by fixing what’s broken. We spoke with Mark Krier, owner of 616 Homes and an experienced real estate investor in Grand Rapids, MI, to get his insights on how to approach home renovations for the best return on investment (ROI).

With over eight years in the industry, Krier’s background in financial markets gives him a unique perspective. “I can’t help but look at everything from a financial standpoint,” he says. His approach to renovations follows a simple yet effective principle: fix what’s broken first, and don’t over-improve.

Fix What’s Broken First

Krier’s advice to homeowners is straightforward: before considering any major upgrades, make sure everything is functioning properly. “The biggest detractor of value in a home is when things aren’t working,” Krier explains. Whether it’s a broken faucet, outdated electrical work, or mold in a bedroom, these issues can turn buyers away immediately.

“Even if it’s not in an important room, like a laundry room, if something’s broken, that’s the first thing you should fix,” he says. Krier also extends this advice to anything in a home that feels outdated or worn out, referring to it as “figuratively broken.” For example, he suggests that a carpet from the 1970s, though not literally broken, may still need replacing as it would be an eyesore for most buyers.

The Dangers of Over-Improving

While many homeowners believe that high-end upgrades, particularly in the kitchen and bathroom, will yield the best ROI, Krier warns against over-improving. “Kitchens and bathrooms are huge drivers of value, but they need to be in line with the rest of the house,” he says. “If you’ve got an average-quality house overall, but you put in a really high-end kitchen, you’re probably not going to get your money back on that.”

The key, according to Krier, is to keep renovations balanced. If one room, like the kitchen, stands out too much in comparison to the rest of the home, it may actually detract from the home’s overall appeal. “It’s about bringing everything up to the same standard,” he advises. “If you have one room that feels way behind the others in terms of quality or condition, start with that room.”

Kitchens and Bathrooms: Great ROI, With a Catch

It’s no secret that kitchens and bathrooms are focal points for buyers, but Krier points out that there’s a fine line between renovating for value and overdoing it. “Conventional wisdom says kitchens and bathrooms are the biggest attractions for buyers, and that’s true,” Krier confirms. However, he reiterates the importance of context, explaining that these upgrades should align with the rest of the home’s quality.

“If the rest of the house isn’t on par with that fancy kitchen you just installed, it’s going to feel out of place,” Krier says. The result? You may not see the positive ROI you were hoping for.

Understanding What’s Outdated

A recurring theme in Krier’s renovation philosophy is the importance of understanding what’s considered outdated based on the price point of the home. Homes under $750,000, especially in areas like Grand Rapids, can often get away with being a bit older, provided everything is functional and clean. “A house from the ’90s at that price point might not feel out of date to buyers because they’re often first-time homebuyers looking for function more than design,” Krier explains.

However, once homes climb above $750,000, buyers start expecting a higher level of quality. “If you’re in the $750K-plus range, even homes from the early 2000s can feel dated,” Krier points out.

When it comes to high-end homes, small details, like outdated trim or bold design choices, can have a significant impact. “Things like orange-toned wood trim or bold design trends from 15-20 years ago can stick out and make a home feel dated quickly,” Krier says. “It’s best to keep designs neutral and timeless, which tend to age better.”

Bringing a Home Up to Standard

For homes that are structurally sound but feel outdated, Krier advises focusing on aesthetic upgrades, such as replacing old flooring or repainting. However, he cautions that these updates can be costly, and homeowners should be realistic about their expectations.

“Bringing a home up to standard can easily cost $200,000 to $300,000, depending on the size and scope of the renovations,” he explains. Yet, even with this investment, homeowners should not expect a dollar-for-dollar return. “You’re lucky if you get a one-to-one return on a full-scale aesthetic update,” Krier says. “Fixing what’s broken is usually a safer bet for seeing a positive return.”

The Safe Bet: Fix, Don’t Overhaul

When asked about the safest way to approach renovations from an investment perspective, Krier’s response is clear: stick to fixing what’s broken. “If you allocate $10,000 to fix things that are broken or outdated, you’re probably going to see at least a one-to-one return, if not more,” he says.

On the other hand, extensive renovations, such as fully remodeling a kitchen or bathroom when there’s nothing wrong with the existing one, may not yield the same results. “If it’s not broken and you’re just updating for aesthetics, you can’t be as confident that you’ll get your money back,” Krier explains.

Conclusion

For homeowners and investors looking to maximize their renovation ROI, Mark Krier’s advice is refreshingly simple: start with the essentials. Fix what’s broken, bring the home up to a consistent standard, and avoid the temptation to over-improve. By keeping these principles in mind, homeowners can ensure they’re making smart, financially sound decisions with their renovations.

The real estate market in 2024 is a landscape of contrasts. With rising interest rates and fluctuating home prices, homeowners and investors alike are questioning where to invest their money for the best return. To shed light on these issues, we spoke with Matt Muscat, Marketing Director at Treadstone Mortgage, a leading mortgage broker based in Grand Rapids, MI. Muscat provided valuable insights into today’s challenging market and how strategic home renovations can increase ROI—if done wisely.

There’s a lot of bad financial advice out there about buying homes and investing in renovations. People think, ‘As long as I put money into my home, I’ll get it back,’ but that’s just not true.

When it comes to homeownership, common wisdom has often suggested that any money put into a home will result in profit down the road. Muscat is quick to dispel that myth.

“There’s a lot of bad financial advice out there about buying homes and investing in renovations,” Muscat explained. “People think, ‘As long as I put money into my home, I’ll get it back,’ but that’s just not true.”

This kind of advice can lead homeowners down a costly path, particularly in today’s market where not all improvements lead to higher home value. Instead, Muscat advocates for a more strategic approach, tailored to the market’s demands.

Where to Invest in Your Home

One of the most frequent questions homeowners face is where to invest in their property to maximize value. Muscat’s recommendation is clear: focus on the areas buyers care about the most—kitchens and bathrooms.

“If you’re going to put money into your house, kitchens and baths are where it’s at,” he said. However, he warns of potential pitfalls. “People often overspend on these renovations, thinking that they can’t go wrong, but the truth is you need to be mindful of the market you’re in. Over-improving your house can actually hurt your ROI.”

Muscat emphasized that renovations should be in line with what’s typical in the local market. In Grand Rapids, for example, homes priced 10% below the median are selling quickly, often sparking bidding wars, while high-end properties are stagnating. “The best houses are still seeing bidding wars, but many others are just sitting,” he noted.

A Tale of Two Markets

Muscat painted a picture of a real estate market that’s split in two. On one hand, affordable homes in good condition are flying off the market, often going for more than the asking price. On the other hand, properties priced above the median, particularly those requiring significant work, are languishing.

“Right now, the market is really tough for both buyers and sellers,” Muscat explained. “Sellers with homes that are priced fairly and don’t need major work are seeing fast sales. But for houses that are overpriced or need a lot of fixing up, it’s a waiting game.”

This trend is being driven by several factors, including higher interest rates and a shift in buyer preferences. “Many buyers, especially investors, aren’t biting on homes that need a lot of work, especially with today’s high material and labor costs,” he added.

The Rise of the Young Homebuyer

Surprisingly, one of the more dynamic forces in today’s real estate market is Gen Z, a demographic that Muscat says is making moves despite high home prices and interest rates.

“We’ve seen a lot of young buyers under the age of 25 coming into the market,” he said. “They don’t have the same hesitation as Millennials, who remember when rates were much lower. These Gen Z buyers are getting deals, sometimes $50,000 below asking, and they’re turning around and renting out rooms to their friends. They’re covering their mortgage while still building equity.”

This willingness to take risks and get creative with their investments is reshaping the market in unexpected ways. According to Muscat, this younger generation is picking up properties that older buyers are passing on, finding value in homes that may need a little extra work but offer significant long-term rewards.

Real Estate Financing: What Homeowners Need to Know

When it comes to financing home improvements, the current economic landscape presents new challenges. Many homeowners who secured low mortgage rates in the past are reluctant to refinance at today’s higher rates, even though they want to tap into their home’s equity.

Muscat advised, “If you’re sitting on a good rate, pulling out a home equity line of credit (HELOC) is often a better option than a full cash-out refinance.” He explained that while a HELOC may come with a higher interest rate, the flexibility it offers can make it a smart choice for those looking to finance home improvements or even fund additional real estate purchases.

For those considering refinancing, Muscat cautioned that the process is more expensive than it used to be. “Refinancing now could take you four or five years to recoup the costs, so you really need to think long-term before making that move.”

Looking Ahead: The Future of Home Renovations and Real Estate

As the real estate market continues to evolve, Muscat believes that homeowners who are smart about their renovations and financing will still see strong returns. However, he emphasized the importance of aligning home improvements with the realities of today’s market.

“In the end, it’s about knowing your market and making strategic decisions. The right renovations in the right price range can make all the difference, but you have to be savvy,” Muscat said.

Whether you’re a homeowner looking to upgrade your kitchen or an investor eyeing a rental property, Muscat’s advice is clear: do your homework, stay mindful of market trends, and invest where it counts.