Hiring the Wrong Contractor
You need to make sure that the contractor is right for you, because he's going to be in your home, and you want to make sure it's the right contractor. When you interview contractors and you check references, the thing you want to find out is, how fast do they return phone calls? A contractor who returns phone calls fast has nothing to hide, and it's going to reduce your anxiety level.
Setting an Unrealistic Budget
I think that people often underestimate what it's going to cost to do a big renovation, and part of that is because they don't realize the biggest cost in a renovation usually is the labor. You never know what's going to happen once you start the demolition process. As soon as you open up a wall, you never know what you're going to find behind that wall, so you need to pad your budget, and you need to be realistic.
Not Doing Your Homework
You have to know what you're getting into, even if you're not doing the work yourself. Know what to look for, what your contractor is doing, that way you can keep a close eye on the project and know when something's getting out of hand. Also, it's important to do at least some preliminary work. You want to be able to have enough information to know what questions to ask,
Avoiding Permits
The bottom line is "if you do perform work without a permit and something serious happens, you know you are fxxxed."
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