Real Estate Expert Jamil Damji’s 5 Costly Home Mistakes To Avoid
As a fix-and-flipper and host of A&E’s Triple Digit Flip, Jamil Damji is well-versed in real estate. Throughout his career, he’s offered tips to those interested in buying a home — including tips on what to avoid before and after the purchase.
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If you’re thinking about buying a home, here are some potentially costly mistakes to avoid, according to Damji.
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Underestimating Your Budget
In a video on his YouTube channel titled, “3 BIGGEST Fix and Flip Mistakes To AVOID At All Costs“, Damji goes into detail about some of his biggest home mistakes. Perhaps the most notable one that other prospective homebuyers should be aware of is the impact underestimating their budget can have on their finances.
Many people, whether they’re buying a home as their primary residence or as a fixer-upper home, underestimate the total costs. This is especially true of those who intend to renovate and sell their property for a profit.
Damji said that many people will go through a contractor to get an idea of how much renovations will cost. But while this might feel like a sure thing, he pointed out that the total costs are usually higher than expected.
To avoid a potentially costly error, he suggested adding a 20% cushion to your budget and getting multiple bids before committing to anything.
Paying People Without Vetting Them First
Damji also recommended being cautious when choosing contractors.
While the easy thing might be to go with the first person you find for your project — who also gives you a decent bid — you could run into trouble by doing this. Damji admitted he’s lost money by paying the wrong people and watching them run away with it.
To prevent this, carefully vet anyone you’re going to hire for your project. Check their business’s online reviews or ratings. Find out where they’re located. Make sure they’re legitimate and that you fully understand — and agree with — their policies and processes before hiring them.
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Know Your Design Theme
Whether you’re fixing up your home for yourself or for the next buyer, it’s important to know your design theme. Otherwise, you could end up spending far too much time and money on a project that’s either not cohesive or isn’t what you wanted in the first place.
Worst case scenario, you’ll have to redo various aspects of it, something that’ll cost even more.
As Damji pointed out, designs can be a “very trendy phenomenon.” If you’re doing a quick house flip, you’ll want to pay attention to the latest trends and try to get ahead of them so as to appeal to the most buyers.
Try Not To Over Improve or Under Improve Your Home
In another of his videos, this one titled “Top 4 Fix and Flip Mistakes — I WAS DOING IT SO WRONG,” Damji talks about falling in love with your first home project and how this can end up being problematic since it can lead to some expensive mistakes — like over or under improving a home.
Over improving can involve making so many changes that it becomes excessive. These changes are often emotionally driven and can become a serious money pit.
To prevent this mistake, check out the neighborhood where the home’s located to see what others are doing to improve their home and what’s popular with the buyers. You can also check on sites like Zillow to see what types of features are prominently listed in their available listings.
Under improving is the opposite. It’s all about doing too little and not getting the returns you’re hoping for. An example of this if someone who tries to renovate a home in a luxurious neighborhood, but uses cheap or substandard materials. Buyers are going to notice, and they’re not likely to bid as high — if at all.
Don’t Give Contractors Too Much Leeway
On the topic of contractors, Damji has quite a lot of other advice on avoiding potentially costly mistakes.
One common mistake is giving contractors free reign over the design elements of a project. This can backfire in several ways.
The contractors could claim to use the best materials, but if you don’t verify this, you could end up with subpar materials or ones that don’t really suit the project. Not all contractors have the best ideas either, so giving them free reign could lead to some bad — and expensive — decisions.
Damji also said that some contractors will request a large amount of cash up front. While paying a deposit might make sense, he advised against giving them more than 25%. That way, they’re less likely to take off with your money and you’re more likely to get results.
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