Article From HouseLogic.com

By: Oliver Marks
Published: September 01, 2009

Doing home-improvement jobs yourself can be a smart way to save money, but choose the right DIY projects or you’ll end up paying dearly.

Why pay someone big bucks to do something you can just as easily do yourself? That’s the thinking that has gotten more Americans than ever swinging their own hammers. In a recent Time magazine poll, nearly a quarter of people said they were taking on more home-improvement projects themselves-understandably so, when you consider that it usually means a 50% to 75% discount, since all you pay for is materials.

But sometimes doing it yourself costs more than it saves, like when you decide to replace the toilet, end up flooding the basement, and have to pay a pro to fix your mistakes. Or, worse, if you become one of the more than 100,000 people injured each year doing home-improvement jobs. Here are some guidelines for deciding when DIY can save you money and when it could cost you.

Stick to routine maintenance for savings and safety

Seasonal home maintenance (http://www.houselogic.com/categories/maintain-structures-systems/) is ideal work for the DIY weekend warrior, since you can plan tasks in advance and get to them when your schedule allows. Because these are repeat projects, your savings will add up to big bucks over the years. Just by mowing your own lawn, for example, you can save $55 to $65 a week for a half-acre lawn during the growing season. The bigger the lot, the bigger the savings: with two acres, you’ll pocket around $150 per week.

When It Pays: Look for maintenance jobs that are relatively easy and need to be done regularly, so you can hone your skills over time. In addition to mowing, other good ones are snow removal, pruning shrubs, washing windows, sealing the deck, painting fences, fertilizing the lawn, and replacing air conditioner filters.
When It Doesn’t: Unless you have skill and experience on your side, stay off of any ladder taller than six feet; according to the U.S. Consumer Product Safety Commission (http://www.cpsc.gov), more than 164,000 people end up in emergency rooms every year because of ladder injuries. The same goes for operating power saws or attempting any major electrical work-it’s simply too risky if you don’t have the experience.

Act as your own GC on small jobs

If you’re more comfortable operating an iPhone than a circular saw, you may be able to act as your own general contractor on a home-improvement project and hire the carpenters, plumbers, and other tradesmen yourself. You’ll save 10% to 20% of the job cost, which is the contractor’s typical fee.

When it Pays: If it’s a small job that requires only two or three different tradesmen, and you have good existing relationships with top-quality professionals in those fields, consider DIY contracting.

When It Doesn’t: Unless you have an established network of contacts who will show up as promised, the time to spend on oversight, enough construction experience to spot potential problems, and the skill to negotiate disputes between the various subcontractors, trying to manage your own project can quickly send the schedule and budget off the rails.

Pitch in with sweat equity on big jobs

Contributing your own labor on a big job being handled by a professional crew can cut hundreds or even thousands of dollars off the contractor’s bill. Tear the cabinets and appliances out of your old kitchen before the contractor gets started, say, and you might knock $800 off the cost of your remodel, says Dean Bennett, a design/build contractor in Castle Rock, Colorado.

When it Pays: Grunt work-jobs that are labor intensive but require relatively little skill-makes the best homeowner contribution. Offer to do minor interior demolition like removing cabinets and pulling up old flooring, daily jobsite cleanup, product assembly, and simple landscaping like planting foundation shrubs and grass seed around your new addition.

When It Doesn’t: If you get in the crew’s way, you may slow them down far more than you help. Make your contributions when the workers aren’t around, such as in the morning before they arrive, or on nights and weekends after they’ve left.

Put on some of the finishing touches

Unlike the early phases of a construction job, which require skilled labor to frame walls, install plumbing pipes, and run wiring, many of the finishing touches on a project are comparatively simple and DIY-friendly. If you do the painting yourself for a new basement rec room, for instance, you can easily save $1,800, Bennett says.

When it Pays: If you have the skill-or a patient temperament and an experienced friend to teach you-finish work like setting tile, laying flooring, painting walls, and installing trim are all good DIY jobs.

When It Doesn’t: The downside to attempting your own finish work is that the results are very visible. Hammer dents in woodwork, for example, or sander ruts in your hardwood floors may cause you aggravation every time you see them. So unless you have a sure eye and a steady hand, it may not pay to embark on these tasks.

A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He’s currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009. All rights reserved.
4VM7BFU4JKAW

Article From HouseLogic.com

By: Oliver Marks
Published: September 30, 2009

Review your remodeling contract carefully and adjust it to make sure it protects you in terms of payments, work schedules, and project specifications.

Even if you never intend to pick up a hammer for your remodeling project, there’s one tool that’s absolutely essential-a solid contract. But just having one often isn’t enough. That’s because the document a contractor gives you is designed to protect him. It’s up to you to add in some basic protections for yourself. Here’s what you need to know to make sure the remodeling contract you sign includes solid legal protection for you and your home.

Hiring a lawyer to review and make changes to a contract is a safe bet, especially since each state has its own construction-contract statutes. But not many homeowners are willing to shell out $500 for an attorney review, plus $1,000 to $1,500 additional fees to make wholesale revisions to a flawed contract. However, you can hand-write changes and additions in plain English and make sure both you and the contractor initial each change to the document, says Tampa, Fla., attorney George Meyer, who is chair-elect of the American Bar Association’s Forum on the Construction Industry. Here’s what you want to add (and subtract).

Project specs

Start by reviewing your contract, a process that should take several hours. The most important element of a contract is a thorough and complete description of the project, and the materials and the products that will be used. “It should say that the contractor will secure all necessary permits and approvals as well as what walls are being moved where, what type of countertops are going in, what type of sink, what type of faucet, and so forth,” says Meyer. “You can’t rely on everyone’s memory because if there’s a problem later, people may remember different things.” The contract needn’t contain these specs on its pages, it can simply refer to the contractor’s attached itemized bid. Avoid allowances (http://www.houselogic.com/articles/getting-best-work-contractor/), which are pools of money set aside for work to be determined later, and which often lead to cost overruns.

Payment schedule

The contract (http://www.houselogic.com/articles/getting-best-work-contractor/) should also state the total price for the job, and that it’s a fixed price-not an estimate. It should provide a schedule of how the payments will be made by linking them to milestones in the work-such as when the foundation, rough plumbing, and electricity will be completed-so you’re paying for work only after it’s done. “You should always have enough money left to hire someone else to finish the work if need be,” says Meyer. In general, the first payment should be no more than 10% of the total job and the final payment should be at least a few thousand dollars to ensure that it’s a big enough incentive to get the contractor back for the final niggling details. If you’re unsure whether the payment schedule is proportional to the milestones your contractor suggests, ask a friend who’s familiar with construction process or consult a construction attorney.

Start and end dates

A contractor’s boilerplate contract rarely includes dates for when he will begin work and when he will complete the job, so make sure those details are included. It’s not that he’ll be penalized if it runs late, only that if you ever have a major problem and need to sue him-or defend yourself from a suit he brings-showing that the contractor is, say, two months behind schedule will help you make your case. The dates needn’t be too exacting. If he says it’s a six to eight week job, eight or even nine weeks is fine for the contract, says Meyer.

Statement about change orders

Make sure the contract contains a line stating that any changes that will affect the cost of the job must be priced in writing and countersigned by both the contractor and homeowner before that work commences. That ensures that an offhand discussion about a possible change to the project won’t result in a huge unforeseen additional cost (http://www.houselogic.com/articles/getting-best-work-contractor/). It also helps you, as the homeowner, keep track of exactly how much you’ve added to the bottom line, so you can avoid the very common urge to keep expanding the job.

Binding arbitration

Many contractors include a line that says that rather than going through the courts, disputes will be resolved by an arbitrator. Some legal experts feel that this is a quicker and lower-cost solution to problems, so a binding arbitration clause isn’t necessarily a problem. What can be trouble is if the contract requires a specific arbitrator. “There are some big, national, well-respected arbitrators, like the American Arbitration Association (http://www.adr.org),” says Meyer. “And there are other questionable arbitrators that always side with the contractor. If a particular arbitrator is specified, I’d do some internet research about the agency to make sure it’s legit.”

Warranty

Having the contractor’s warranty in the contract seems like a good thing, right? Well including it is often actually a technique for limiting how much liability the contractor has. “It’s usually loaded up with exclusions and time limits,” says Meyer, “and you’re actually better off with no mention of warranty at all because then the only limits on his warranty are what’s in the state statutes.” In other words, keeping the contractor’s warranty language in the contract will likely mean you’re agreeing to less than what state law provides. For example, state law may specify a longer warranty term than what the contractor’s warranty offers. So, unless you’re having a lawyer review the contract, strike the warranty clause.

Technicalities

There are numerous state-by-state requirements for construction contracts. He may have to include his contractor’s license number, for example, and he may have to include a clause saying you have the right to rescind the contract within a certain time period after signing. And unless you and the contractor sign the document, it doesn’t matter what it says-it’s not a valid contract.

A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He’s currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009. All rights reserved.

Article From HouseLogic.com

By: Oliver Marks
Published: August 28, 2009

Whether to move or improve is a harder question to answer than it was a few years ago, but a few cost-benefit calculations can help you make the right decision.

What do you do when your family outgrows your house, or when the quirks you once found charming about the place just aren’t livable anymore? A few years ago, the answers were easy. With house values climbing an average of 50% from 2001 to 2005 and lenders handing out big checks to nearly anyone who asked, you could quickly unload a too-small house and use the profits to help pay for a larger one. Or you could borrow against that growing equity to fund a big home-improvement project, with the full expectation of making your investment back someday when you sold. Flash forward a few years, and the rules of real estate have changed. In this marketplace, with home equity shrinking and banks reluctant to lend, is it smarter to move or improve? Here’s some advice to help you decide.

Moving has gotten harder

With median housing prices down 25% since their peak in 2006, some 15 million homeowners-almost one in four-owe more on their mortgages than they could get from a buyer, according to Celia Chen, senior director of Moody’s Economy.com (http://www.economy.com). And even folks who bought before the big run-up and can afford to sell at today’s lower prices still face steep odds trying to unload their homes with the glut of inventory on the market (36% more lawns wear For Sale signs now than a few years ago). There was an uptick in units sold in early 2009, leading some economists to predict that the market has begun to rebound, but selling a house is likely going to remain difficult for a while.

Still, there can be an advantage to trading up now: If your house has curb appeal and a good kitchen-and you price it right-offers will come. You may not turn a big profit, but once you sell, you become a buyer in this buyer’s market. That means you’ll find what you’re looking for and pay less for it than a few years ago.

To analyze your trade-up options, check local listings to ballpark the price you could realistically get for your home and what you’d have to pay for the next place. Then contact a bank to see if, based on those figures and your financial situation, you’re likely to qualify for the new mortgage. Or do your research online: Investigate home values at online real estate sites and how much of a mortgage you’d qualify for at bankrate.com (http://www.bankrate.com).

Improving has gotten easier

The economic slump has actually made renovating the home you already own a bit easier. The construction-industry slowdown has lowered the cost of some building materials: Plywood is down 46%, for example, framing lumber is down 42%, and drywall is down 25%, according to Bernard Markstein, senior economist for the National Association of Home Builders (http://www.nahb.org). Many contractors are also charging less for labor, to compete for the smaller pool of available jobs. What’s more, you won’t have to wait months for a contractor to show up-chances are he’ll be able to start in a matter of days.

Of course, you’ll still need to come up with cash to pay for the project. And the news is good there, too: As a general rule, improving costs less than trading up. Figure somewhere between $100 and $200 per square foot for new construction or a major remodel, depending on the scope of the project and labor costs in your area. (For help with budgeting and financing, see”Budgeting for a Remodel” (http://www.houselogic.com/articles/budget-for-remodel/) ) A two-story addition with a family room, bedroom, and bathroom costs an average of $156,309, according to Remodeling Magazine’s 2009-10 Cost vs. Value Report. (http://www.remodeling.hw.net/2008/costvsvalue/national.aspx)

Now more than ever, though, you need to make sure that you invest your money wisely. In other words, will your $75,000 kitchen remodel increase your home value by $75,000-or by anything close? For guidelines, check out the Cost vs. Value Report, which gives national average cost and payback figures for 30 popular remodeling projects.
To assess what’s right for your particular house, let your neighborhood be your guide. If there’s any chance that you’ll move within the next 10 years (and in this economy, who can be sure?) keep your improvements in line with those of other houses on your block, or you risk losing the money when you sell.

The most important considerations haven’t changed

Your house isn’t just your largest investment, of course, it’s also the place where your family lives. Financial considerations aside, the question of whether to move or improve should be decided by the things you cannot change about your current home: the school district, the amount of traffic on your street, the size and layout of your yard, your commute, the ease of access to markets and malls, and your neighborhood quality of life. If you love the spot, improving makes sense. But if a different location would be an improvement in its own right, then trading up could be the way to go.

A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He’s currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.

<!– @page { margin: 0.79in } P { margin-bottom: 0.08in } –>

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009. All rights reserved.

Article From HouseLogic.com

By: Oliver Marks
Published: September 30, 2009

You’re ready to remodel but you want to make sure you get the best contractor for the job. Here’s what to ask the candidates before you decide.

For all of the excitement of choosing plumbing fixtures, cabinets, and tiles for a remodeling project, the most important decision you make won’t involve color swatches or glossy brochures. It’s the contractor you pick that makes or breaks the job. That choice will determine the quality of the craftsmanship, the timeliness of the work, and the amount of emotional and financial stress the process puts on you. To make sure you’re getting the best contractor for the job, here are five questions to ask the candidates.

1. Would you please itemize your bid?
Many contractors prefer to give you a single, bottom-line price for your project, but this puts you in the dark about what they’re charging for each aspect of the job. For example, let’s say the original plan calls for beadboard wainscot in your bathroom, but you decide not to install it after all. How much should you be credited for eliminating that work? With a single bottom-line price, you have no way to know.

On the other hand, if you get an itemized bid, it’ll show the costs for all of the various elements of the job-demolition, framing, plumbing, electrical, tile, fixtures, and so forth. That makes it easier to compare different contractors’ prices and see where the discrepancies are. If you need to cut the project costs, you can easily assess your options. Plus, an itemized bid becomes valuable documentation about the exact scope of the project, which may eliminate disputes later.

The contractor shouldn’t give you a hard time about itemizing his bid. He has to figure out his total price line by line anyway, so you’re not asking him to do more work, only to share the details. If he resists, it means he wants to withhold important information about his bid-a red flag for sure.

2. Is your bid an estimate or a fixed price?
Homeowners generally assume that the bid they’re seeing is a fixed price, but some contractors treat their proposals as estimates, meaning bills could wind up being higher in the end. If he calls it an estimate, request a fixed price bid instead. If he says he can’t offer a fixed price because there are too many unknowns about the job, then eliminate the unknowns.

“Have him open up a wall to check the structure he’s unsure about or go back to your architect and solidify the design plans,” says Tampa, Fla., attorney George Meyer, who is chair-elect of the American Bar
Association’s Forum on the Construction Industry. If you simply cannot resolve the unknowns he’s concerned about, have the project specs describe what he expects to do-and if he needs to do additional work later, you can do a change order (http://www.houselogic.com/articles/what-remodeling-contract-should-say/) (a written mini-bid for new work).

3. How long have you been doing business in this town?
A contractor who’s been plying his trade locally for 5 or 10 years has an established network of subcontractors and suppliers in the area and a local reputation to uphold. That makes him a safer bet than a contractor who’s either new to the business or new to the area-or who’s planning to commute to your job from 50 miles away.

You want to see a nearby address (not a PO box) on his business card-and should ask him to include one or two of his earliest clients on your list of references. This will help you verify that he hasn’t just recently hung his shingle-and will give you perspective from a homeowner who has lived with the contractor’s work for years. After all, the test of a quality job, whether it’s a bluestone patio or a family room addition, is how well it stands the test of time.

4. Who are your main suppliers?
You’ve found a few potential contractors, you’ve talked to the happy former clients on each of their reference lists, now it’s time for one additional bit of homework: talking to their primary suppliers. There’s no better reference for a tile setter, for example, than his preferred tile shop; for a general contractor than his favorite lumberyard or home center pro desk; for a plumber than the kitchen and bath showroom where he’s on a first name basis.

The proprietors of these shops know a contractor’s professional reputation, whether he has left a trail of unhappy customers in his wake, if he’s reliable about paying his bills-and whether he’s someone you’ll want to hire. The contractor should have absolutely no qualms about telling you where he gets his materials, as long as he’s an upstanding customer.

5. I’d like to meet the job foreman-can you take me to a project he’s running?
Many contractors don’t actually swing hammers. They spend their days bidding new work and managing their various jobs and workers. In some cases, the contractor you hire may not visit the jobsite every day-or may not even show himself again after you’ve signed the contract. So the job foreman-the one who’s working on your project every day-is actually the most important member of your team.

Meeting him in person and seeing a job that he’s running should give you a feel for whether he’s someone you want managing your project. Plus, it gives the general contractor an incentive to assign you one of his better crews since you’re more likely to hire him if you see his A Team. If the contractor says he’ll be running the job himself, ask whether he’ll be there every day. Again, he’ll want to give you a positive response-something you can hold him to later on.

It’s not only the answers to these questions that will help you judge potential contractors-it’s the way they answer them. Were they easy to talk to and forthcoming with details or did they hem and haw and make you ask more than once? Difficulty communicating now means difficulty communicating on the job later. But clear, timely and thoughtful responses-combined with terrific references, great completed work that you’ve seen, and a smart take on your project-may mean you’ve found the right pro for your job.

A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He’s currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009. All rights reserved.

Article From HouseLogic.com

By: Oliver Marks
Published: August 28, 2009

To calculate how much remodel you can afford, follow these four steps: Ballpark the cost, establish a spending limit, make a wish list, and set your priorities.

What’s on your remodeling wish list? Maybe you’re longing for a spa-like master bathroom, a new eat-in kitchen, or a garage with space enough to fit your cars and your outdoor gear. Well, when it comes to home improvements, knowing what you want is the easy part. The tougher question is figuring out how much you can afford. Follow this four-step plan to arrive at the answer.

Ballpark the costs

The first step is to get a handle on how much your remodeling dreams will cost. Remodeling Magazine’s 2009-10 Cost vs. Value Report (http://www.remodeling.hw.net/2008/costvsvalue/national.aspx) gives national averages for 30 common projects. Or you can use a per-square-foot estimate: In general, major upgrades, such as a bathroom remodel or a family-room addition, run $100 to $200 per square foot. Your local National Association of Home Builders (http://www.NAHB.ORG) affiliate can help with estimates. At this point, you’re not trying to nail down exact prices, but to get a rough sense of what your project might cost.

Figure out how much you have to spend

Once you have a ballpark cost estimate, the next question is whether you have the money. If you’re paying cash, that’s pretty easy to answer. But if you’re borrowing, you need to assess how much a bank will lend you (http://www.houselogic.com/articles/a-guide-to-equity-loan-options/) and what that loan will add to your monthly expenses.

For the vast majority of homeowners, the best way to borrow for a home improvement is a home equity line of credit (http://www.houselogic.com/articles/consider-home-equity-line-of-credit/). A HELOC (pronounced HEE-lock) is a loan that’s secured by your home equity, which means that it qualifies for a lower rate than other loan types, and you can deduct the interest on your taxes. Because a HELOC is a line of credit rather than a lump-sum loan, it comes with a checkbook that you use to withdraw money as needed, up to the maximum amount of the loan. For help shopping for a HELOC, download our free worksheet.

The catch is that the minimum payment on a HELOC is just that month’s interest; you’re not required to pay back any principal. Like only paying the minimum due on a credit card, that’s a recipe for getting stuck in debt. Instead, establish your own repayment schedule. You can do this simply by paying 1/60th of the principal (for a five-year paydown) or 1/120th (for 10 years) in addition to the monthly interest. If you can’t afford that much, then you should reconsider your project.

Get quotes from contractors

Once you have ballpark estimates of what your job might cost and how much you can spend, you know whether it’s feasible to move forward. Assuming the numbers are within shooting range of each other, it’s time to get a nuts-and-bolts assessment of project costs.

Don’t ask contractors for bids yet, though. First, you need to determine exactly what you want, right down to the kitchen countertop material and the type of faucet. By specifying these details up front, you ensure that contractors are all pricing the same things, rather than the countertop and faucet they assume you want. If you’re using an architect or designer, bring them in now to help with these choices. If not, consult magazines, go to showrooms, and visit friends’ houses for ideas.

Next, get recommendations for at least three contractors from friends, neighbors, and other tradesmen that you trust. Give each one your project description and specific product lists and request an itemized bid. To make a final decision, assess some of their previous work, their attitudes, and their references, and then choose the contractor who impresses you most.

Prioritize and phase

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009. All rights reserved.

One of the main concerns you may have if you are doing a remodel or addition in the Twin Cities area is how you are going to pay for it. Thankfully, you’ll find that there are a variety of different payment options that you can consider when you are trying to complete a remodeling project or you want to do a new addition on to your home. From home equity loans to using your savings, you have many options to choose from. Here is a closer look at the options for payment that you have to consider, as well as the pros and cons for each one.

Home Equity Loans

When it comes to paying for your addition or remodel, one of the best financing options that you have is a home equity loan. This is basically a loan against the equity that is in your home. No, this is not a new mortgage, but it allows you to get money back from the equity that is in your home. When it comes to the pros, you’ll find that this type of a loan is usually going to be deductible from your taxes. At the beginning when you get the loan, you can get the entire lump of money that you need. You can get a great deal by getting a variety of quotes. On the negative side, this gives you another loan that you have to pay for. You also have to make sure that you have enough equity in your home to do this.

Loans Against Your Retirement

Another option that you have for financing your addition or remodeling project is to take out loans against your retirement. On the pro side, you’ll find that you get to pay the interest to yourself on this loan that you take out. However, there are some disadvantages as well. The interested that it would be making if invested is lost. Also, if you happen to lose the job that you have, you may have to pay that loan back right away to the bank.

Construction Loans

Construction loans, otherwise known as a construction mortgage, is another option you have when trying to pay for a home addition. If you are going with a remodeling project of addition that is going to be fairly large, this is a great idea. Even if you do not have enough equity in your home to get a home equity loan, usually you can get a construction loan anyway. On the other hand, the interest rates are quite a bit higher than the home equity loans and they are not deductible on your taxes. In many cases you’ll find that these loans are only short term as well until the construction has been totally completed.

Home Equity Line of Credit

A home equity line of credit is yet another option to consider. This is a bit different than a home equity loan. With the line of credit, you don’t have to take all the money at once, which means that in the beginning, the finance charges that you will have to pay are quite a bit lower. You can also get quotes on these lines of credit to help you save money and get an excellent rate. It can be a negative option though because the repayment period is not as long as a mortgage and you have to pay on another loan other than your home mortgage.

Refinancing and Cashing Out

If you refinance your home for a higher amount and then take the extra cash, this can help you to get the money that is needed for your home addition. Usually when you go with just one loan that is larger, you can get a better interest rate. However, you do have to have enough equity in your home to get a higher amount on the refinance. The entire loan will be charged interest that you’ll have to pay as well.

Spending Your Savings

If you actually do have a savings account build up, then you may want to consider using it to help pay for a remodeling job or for a home addition. This is probably one of the best ways that you can pay for this. It is definitely going to be the option that is going to cost you the least. However, if you do decide to go this route, you should never use up everything that you have in your savings account. Some money should be saved in order to take care of an emergency if you happen to have one.

Getting a Loan from the Contractor

Contractors often offer loans as well and they are available to most people who own a home. Beware though, they usually have extremely high interest rates and the terms are not always the best. Also, you may have to work with a certain contractor if you take out this type of a loan, so it is usually not the best option for you.

Using Your Credit Cards

Using your credit cards is another option that you can use to pay for your additions or remodels. Many people who own a home do have a credit card and may be able to use them to pay for some of the costs related to remodeling or adding on to their homes. However, these options are in no way deductible from your taxes and the interest rates are very high as well. So, when you are doing a remodeling job in Minnesota, credit cards are not really the best way for you to go.

Whether you are planning to do a major remodel or you want to do a major home addition, there are going to be so many different things to keep in mind. After all, many people don’t realize what they are getting into when they start a room addition or a remodeling addition to their home. You’ll find that there is much to think about before you get started and as the addition or remodel occurs. There are quite a few concerns, you have the remodel or home addition cost to think about, and there are various issues that can crop up. So, it’s important that you know about these things before you get started. Here’s a closer look at the costs associated with a remodel or home addition, some of the top concerns when you are remodeling in your home, and a few remodeling and addition issues that you’ll need to keep in mind.

The Costs of a Major Remodel or Home Addition

First of all, when it comes to a home addition or even a major remodel on your home, you’ll find that there are a variety of different costs. It’s best to find out about them up front rather than to be shocked about them in the future. If you are going to have someone design the addition or remodel, then you’ll have to pay for the designing. Permits to do the house addition are also going to cost you once the project has been appraised. Site preparation, foundation work, plumbing, electrical work, and cooling and cooling are all going to cost as well. Don’t forget you’ll have to pay for sheet rock, shingles for the roof, siding, flooring, and more. Of course the windows, doors, appliances, fixtures, and the finish work is going to cost you too. So, as you can see, there are definitely some major costs that you’ll need to be aware of.

Top Concerns When Remodeling

When it comes to a remodel addition, there are many concerns that you should be keeping in mind as well. Here are some of the top concerns that you’ll need to have when you are going to add a new addition or a remodel to your home.

• The Cost -  Of course as mentioned, the cost of the home addition is definitely going to be a concern. In fact, many people find out that the addition they wanted ends up costing them so much more than they ever planned on. This is why it’s important to take care of this concern by coming up with a budget that you can stick to when you are doing this type of home project.

• Finding the Right Contractor – Another important concern to keep in mind is finding the right contractor for your needs. You need to insure that you get a quality remodeling or addition contractor that can help you complete your project. Of course there are many things to consider when it comes to picking out a great contractor. Insurance, license, experience, and price are all important things that you should be considering.

• Environmental Concerns – Environmental concerns should also be kept in mind when you are getting ready to do an addition to home. Whether it is a small addition or a large room addition, you want to consider how you are going to affect the environment of your home with the addition that you want for your home.

• Integrity of the Structure – The integrity of the structure should also be kept in mind when it comes to home additions as well. You want to ensure that nothing is done to the home that is going to cause a problem with the structure of the existing home.

Remodeling and Addition Issues

Whether you are doing a remodel or an addition in the Twin Cities, there are several different issues to keep in mind that you will definitely need to consider. Make sure that you consider these issues carefully no matter whether you are doing a small addition or a remodel on your home.

• Plenty of Storage Space -  Make sure that you have plenty of storage space. This can be a major issue whether doing a remodel or an addition. If you don’t have enough storage space, you are going to regret this in the future. So you should take careful measures to ensure that you have enough space to provide excellent storage for you.

• Adequate Floor Space - Adequate floor space is another issue that you should keep in mind when it comes to your home design. No doubt you want to make the best out of the floor space that you have if you are doing a remodeling project. However, if you are doing a home addition, you’ll want to make sure that you design in enough space for your needs.

• Having the Needed Permits – Last of all, the needed permits for building home addition is going to be imperative. Without the right permits, you could end up getting fined. So, do your research. Find out what kind of permits you are going to need to complete the project.

Whether you are doing a remodeling project in St. Paul or Minneapolis, choosing a contractor is one of the most important things that you will do. Having a great contractor on your side is extremely important and will make the difference between a mediocre remodel or one that is excellent. Of course while you are on the lookout for a top notch contractor, you are going to want to compare bids that contractors offer you along the way. You’ll find that there is a lot of room for negotiation when it comes to the bids on the remodeling. So, when you do get a bit, you should learn to negotiate to make sure you get what you want. If you are ready to start comparing bids, here is a closer look at what to look for in bids, comparing them, the materials to consider, and the best tips for finding the best possible bid out there.

Things to Look for in a Bid

First of all, before you can really make a decision on contractor bids in Minnesota, you are going to have to know what you should be looking for in a bid. This is something that occurs before you sign a construction contract. So, here are the top things you need to look for in contractor bids on construction services for your home.

• Clear Definition of the Work – One thing that you should be looking for in a good bid is a clear definition of the work that you need to have done. The bid should be very specific about this. Having some plans included is a great idea, with the initials of the contractor at the bottom of the each page of the plans that have to do with their proposal.

• Dates of Starting and Completion – Another aspect to look for in a good bid is the dates when the contractor is going to state and when they propose to have the project completed.

• The Insurance Provisions – The insurance provisions should also be included in any bids from contractors. You will want to know what is covered and who is going to be providing that coverage.

• Price of the Bid – Of course the price of the bid should be included in the bid. Of course not just the price should be included. However, how the price will be paid should be included and when the money should be paid should also be a part of the bid. Here you should find how long the bid is going to hold as well.

• Responsibility of Cleanup – The responsibility of the cleanup is another thing that should be included in the bid that the contractors give to you. The last thing you want is to get left cleaning up everything on your own. So, make sure you see on the bid whether they will clean up after the work or if they are going leave it all up to you. This can definitely make a difference in the bid that you decide to choose, so read very carefully.

• Conditions that Can Lead to Withholding Payment – Any conditions that can lead to you withholding payment is something else that should definitely be included on the bid.

Comparing the Bids

Once you have several different bids from various contractors, that include the construction services that will be offered and more, then you will need to start actually comparing these bids so you can go on to have a construction contract drawn up and signed. Carefully compare these contractor bids. You want to make sure that you go with the best possible option for your needs. A great way to compare is to come up with a comparison sheet so you can easily compare these bids. This will allow you to more easily see how the bids compare to each other. Remember, the price is not the only thing that you are going to want to consider. The quality of materials and amount of work is going to matter as well. Go for the best value for your money, not just the lowest price.

Keep the Quality of Materials in Mind

Product  material quality is an important consideration when you are taking a look at the contractor bids that are offered to you. You  need to realize that the lowest price that is offered to you may not be the best deal for you. Make sure that you look at the materials that are going to be used. Make sure that the materials used are going to be quality. Why pay less only to have lower grade materials used on the remodel? So, ensure that you keep this in mind when you are looking at the bids.

Top Tips for Finding the Best Bid

So, you may be wondering how you can find the best possible contractor bid. Well, there are several ways to do this. First of all, you need to go through the bids line by line. This way you get a good idea of the comparison. Go with the more experienced and quality contractor as well, even if they don’t have the lower price. Consider trying to negotiate the price. Let them know you’d love to have them work with you, but you have a limited budget. They may be willing to come down a bit on the price quoted in the bid. If you never ask about a lower price, you’ll never know if they will come down a bit. So, make sure that you get out there and do some negotiating so you and the Minnesota contractor can come to a good agreement.

Before letting any Minnesota contractor get started on your remodeling, one of the most important things you need to keep in mind is the remodeling contract. You should always make sure that there is a contract in place. In fact, you should never allow the contractor you choose to start any work until you have looked over the contract and then signed it. The contract should spell out every part of the project, from the time span to the cost of the entire project by the end. Don’t just take the word of the contractor. You should have the agreement that you come to in writing. Not sure what should be in a contract?  Well, let’s take a look at the elements of a remodeling contract and some safety tips for signing a contract as well.

Things the Remodeling Contract Should Definitely Include

There are a variety of different things that every remodeling contract should have. Here are top things to look for before you sign a contract.

• Contact Information – The remodeling contract should include the contact information of the contractor. This includes their address, a phone number, and their license number as well. This way you have all this information on hand. Ensure that their full name, not just their business name, is included too.

• Some Type of Visual – There should be a visual representation of what is going to be done. This can include things like sketches, floor plans, or even blueprints. This helps to show what your contractor is to do.

• Time Table – You should also ensure that the remodeling contract has a time table for completion. This should include the date when the construction is going to start and the date when it will be completed as well.

• Money Information – This should include the total price that you are going to have to pay for the job. The payment schedule should also be drawn out so you can see it.

• Materials and Products – Each type of materials and products should be described. On the contract they should easily be identified. Brand names, the number of the model, size, and even color should be included.

• Information on Insurance – Take a look closely. The insurance information of the contractor should be located on the remodeling contract too.

• Warranty on the Work – If the contractor is providing you with statuary warranties, insured warranties, or any other type of warranty, it should be included in the contract. This way you can refer to it and prove that there was a warranty on the work that was done.

• Cleanup Information - If you are expecting the contractor to take care of all the cleanup, then this should be included in the remodeling contract. Don’t take their word for it. If it’s not in the contract, they may not honor it, even though they may have said that it was included.

Safety Tips for Signing a Contract

You should never blindly be signing a contract with a contractor. Here are some top safety tips to keep in mind before you sign your name on the paper.

• Tip #1 – You should never sign your name to a contract that isn’t totally filled out. If you do, the contractor could add some things to the contract after they already have your name. This is a way that you can be taken advantage of. So, make sure that the contract is totally filled out before you sign it.

• Tip #2 - Ensure that you read all of the contract. Don’t skip any parts because you are in a hurry. You could miss something important. So, make sure to read it very carefully and if you don’t understand, don’t hesitate to ask for clarification.

• Tip #3 – Always make sure that you have a copy of the contract that you have signed. This way you can refer to it yourself if you need to and can make sure that nothing gets changed.

• Tip #4 – Never pay more than the down payment that you are required to pay before the work has started.

• Tip #5 – Last of all, make sure that you never pay off the rest of the work until all of the work has been done and all of the cleanup has taken place.

Before you sign the contract, it may even be a great idea to talk about the contract with your attorney. This way you can be very careful about what you sign. The last thing you want to do is to sign a binding contract that is not something you need. These are all important things that you need to remember when it comes to going over a remodeling contract and signing it. Never leave yourself in a position where you are taken advantage of and the best way to do this is to make sure that you carefully check out your contract before you ever sign it.

Whether you are planning on doing a bathroom remodel, remodeling your kitchen, or even some other room in your home, developing remodeling plans can be a huge help. There are so many things to be done, from finding a contractor to working with building codes. So, you have a whole lot to do when it comes to coming up with plans for the project that you want to accomplish. If you are trying to come up with the remodeling plans for your home remodeling project in the Twin Cities, here are some important things that you’ll want to keep in mind. These plans can help you make sure that the project goes very smoothly from start to finish.

Start Sketching Your Dreams

Even if you are going to be working with an architect later one, you can get started by sketching your dreams. Use your imagination to think about how you’d like the remodeled room to look. Think about how you want to make use of the room in the room. Also, consider how the new remodeling is going to affect the rest of your home. If you need some help with the sketching and visualization, consider using some home designs software at home that will help with this aspect of the remodeling planning process.

Learn From Other People First

One great way that you can make sure that you get some great inspiration for your remodeling product and avoid some of the most common mistakes is to learn from other people first. You can take the time to get online to read important articles and stories about the remodeling experiences of other people who were working on their houses. Often you can find message boards, chat rooms, and even forums where you can talk to others who have already gone through a home remodel. You can learn so much that you can use from others.

Take Time to Think Ahead

When you are working to develop your remodeling plans, you need to take the time to think ahead. Sure, you may want to add on to your home, but if you are going to sell your home and move in a year or too, it’s probably not really worth it to you. In some cases a remodel that is too luxurious may price your home far above the other homes around it, making it difficult to sell. Some remodeling projects can even take away from the value of your home. So, before you make all of your plans, make sure that you consider the future. Your needs may be changing soon too, so keep all of this in mind when making your plans for the remodel in Minnesota.

Take a Closer Look at Your Budget

Taking a closer look at your budget is a great idea as well when you want to come up with the best plans for your remodel. You want to make sure that you can do the entire project with the budget that you have. In many cases you will find that the costs of your remodel is going to be a lot more expensive than you think. Decide on the amount of money that you have to use for the remodel and then you’ll be able to figure out how to spend it. Work on planning your spending well too so that you don’t go over the amount of money that you have budgeted out. You’ll find that it is also helpful to plan on spending a bit more than you think, since many times there are last minute expenses that crop up along the way.

Choosing a Top Remodeling Team

As you develop your remodeling plans, you’ll need to choose a top remodeling team to help you out as well. While you may want to do some of the work, you may not be able to do everything for the remodel on your own. It’s important that you make sure that the team you decide to use is insured, licensed, and experienced as well.

Negotiating a Good Contract

Get bids from contractors and work on negotiating a good contract. Whether the job you need done is a simple one or one that is going to cost thousands, the last thing you want to deal with is misunderstandings along the way that will cost you. You should never allow a contractor to get started without having a good written contract in place. Everyone should agree on the work that will be done, the cost of the work, and the length of time the remodeling will take. Make sure that you make clear the materials that you don’t want used and the ones that you do want used.

Get the Permits that You’ll Need

Working with building codes is going to be part of making your remodeling plans. You’ll need to make sure that you get the permits that you need. Find out if the remodeling you will be doing is going to need some kind of building permit before you get started. It’s best to do your homework first so you avoid getting a fine.