| Reasoning Your Redo | | | | you money and time, too. For example, these |
| | | | professionals can help you get a custom look |
| Many home improvement projects begin with | | | | using stock products, and that can be a |
| someone in the household saying, "Wouldn't it | | | | significant savings. Getting something done |
| be nice ...?" What follows may be a wish for | | | | right--the first time--will give you value |
| a remodeled kitchen or a room addition with | | | | that lasts for years. |
| space to accommodate every family member's | | | | |
| needs. However, reality usually intrudes upon | | | | Word-of-mouth is a good way to start looking |
| this daydream: There's only so much money and | | | | for home improvement specialists. Check with |
| so much space. The trick is turning your | | | | friends, business associates and neighbors |
| dreams into reality. Start by evaluating your | | | | for recommendations. Always ask for at least |
| needs. Most homeowners consider home | | | | three references - and check them out. Check, |
| improvements for one of these reasons. | | | | too, with your local chapter of the Better |
| | | | Business Bureau or Chamber of Commerce. You |
| You need to update the out-of-date. If your | | | | can find the number in the community services |
| kitchen still sports appliances and decor | | | | section of your telephone book. Make sure |
| from decades past, now may be the time to | | | | everyone is in agreement about design, |
| make it current. | | | | schedule and budget. Get the details down in |
| | | | writing in a signed contract. You'd also be |
| You need to replace fixtures or appliances. | | | | wise to check on professional certifications |
| Sometimes a home improvement project grows | | | | and licenses, where required, and insist that |
| out of an immediate need to replace broken or | | | | any contractors you hire are fully insured |
| inefficient fixtures. If the sink, tub or | | | | and bonded. Contact your town or city |
| toilet has to be replaced, many people take | | | | Building Department for information. In |
| the opportunity to refurbish the entire | | | | particular, make sure contractors carry |
| bathroom. | | | | workers' compensation insurance so that if |
| | | | any workers are injured on the job, you won't |
| You're selling your home. You want to be sure | | | | be held liable. Ask for a copy of their |
| you'll get top dollar from the sale of your | | | | insurance certificates. Also make sure that |
| home, and that may be the rallying cry for | | | | you or the contractor secure any necessary |
| some home improvement projects. | | | | permits before beginning the work. Contact |
| | | | your local Planning and Zoning Commission for |
| You're staying put. You thought about moving, | | | | information. |
| but now you realize that improving your | | | | |
| present home is a better option. | | | | Here's a quick overview of some of the pros |
| | | | you may work with in remodeling your home: |
| Your family has grown and you need more | | | | |
| space. | | | | Architect: These professionals design homes |
| | | | or additions from the foundation to the roof. |
| Improving to Move or Improving to Stay | | | | If you're planning structural changes--adding |
| | | | or taking out walls, for example--or |
| You need to evaluate your plans carefully if | | | | anticipate a complex design, you'll probably |
| you're improving your home to put it on the | | | | want an architect. You may pay an hourly fee |
| market. Cutting corners could hurt rather | | | | or a flat fee. Be sure to get an estimate of |
| than help your prospects, but you don't want | | | | the total cost: It can take 80 hours or more |
| to go overboard either. Potential buyers may | | | | to draw up plans for a major remodeling |
| not want to pay for the extras you have | | | | project. |
| included, such as a hot tub or pool. It's | | | | |
| best to keep changes simple. | | | | Contractor: This person oversees the |
| | | | nuts-and-bolts aspects of your home |
| Also keep in mind that people viewing your | | | | improvement project, such as hiring and |
| house may not share your tastes and therefore | | | | supervising workers, getting permits, making |
| won't necessarily appreciate the time and | | | | sure inspections are done as needed and |
| effort you put into finding just the right | | | | providing insurance for work crews. You may |
| shade of green paint for the walls. | | | | wish to get proposals from one or more |
| | | | reputable contractors, based on specific |
| Improving to sell is easier if you mentally | | | | details of your project. Be sure each |
| put yourself on the other side of the | | | | contractor bids on exactly the same plan for |
| proverbial fence: What is important to the | | | | comparison purposes. Once you've chosen a |
| home buyer? Here's a list of remodeling | | | | contractor, make sure your contract specifies |
| projects that buyers are likely to find | | | | that you will pay in several stages. It's |
| valuable: | | | | customary to pay one third when the contract |
| | | | is signed so that the contractor can buy |
| Adding or remodeling a bath | | | | supplies. The number and timing of other |
| | | | payments depends on the size of the job, but |
| Improving the kitchen | | | | do not make final payment until all work is |
| | | | successfully completed, inspected and |
| Adding a new room | | | | approved. |
| | | | |
| Landscaping | | | | Interior Designers: These specialists offer |
| | | | advice on furnishings, wall coverings, |
| Adding a bedroom | | | | colors, styles and more. They can help save |
| | | | you time (by narrowing down selections) and |
| Adding or enclosing a garage | | | | money (from the professional discounts they |
| | | | might receive). When meeting with an interior |
| If you're remodeling in order to stay in your | | | | designer, be sure to talk about your personal |
| home, you still need to avoid over-improving | | | | style and preferences. Expect to pay anywhere |
| it. You'll probably sell someday, and even if | | | | from $50 to $150 per hour, or you may |
| your house is the best on the block, you may | | | | negotiate a flat fee of perhaps 25% of the |
| have a hard time convincing buyers to pay | | | | total project cost. |
| extra for the things you found so important. | | | | |
| Keep the value of other homes in the area in | | | | Financing Repairs |
| mind whenever you consider improvements. Your | | | | |
| home's value should be no more than 20% above | | | | Depending on the scope of your home |
| the average. That means a $10,000 kitchen | | | | improvement plans, finding funding may be a |
| improvement project might be a better idea | | | | project itself. If the project is small, you |
| than a $10,000 hot tub, especially if no | | | | may be able to save for it from your regular |
| other homes in your area have hot tubs. | | | | household budget. For larger projects, you'll |
| | | | probably need to borrow money. If you |
| Home Maintenance | | | | participate in a 401(k) or 403(b) plan at |
| | | | work, you may be able to get a short-term |
| Unfortunately, some home improvement projects | | | | loan from your account. To find out if this |
| get started because something is broken. A | | | | option is available to you and to learn about |
| leaky plumbing fixture may be the first step | | | | any tax implications, talk to your benefits |
| to a major bath remodeling. After all, if the | | | | administrator. Another possibility is |
| tub has to be replaced, why not do the whole | | | | borrowing against the cash value of your life |
| room? | | | | insurance policy. If you're interested in |
| | | | finding out more about this type of loan, |
| While that's certainly one reason to remodel, | | | | talk to your life insurance agent. |
| you'll generally want to avoid basing your | | | | |
| home improvement projects on immediate need. | | | | To take out other types of home improvement |
| Proper maintenance will help to minimize | | | | loans, head to your local bank, savings and |
| problems. Go over every part of your home at | | | | loan, or credit union. Compare interest |
| least once a year. Check out the roof, | | | | rates, repayment options and penalties from |
| plumbing, electrical wiring, etc. As soon as | | | | lending institutions before deciding on one |
| you notice a problem, fix it. Early attention | | | | of the following options: |
| to repairs will help you avoid a larger | | | | |
| expense later on. Remember maintenance does | | | | Second mortgage: This is a loan against the |
| not add to the value of your home. Repairs, | | | | equity in your home. It is, in essence, an |
| generally, are not improvements but | | | | additional mortgage. Typically, financial |
| necessities. | | | | institutions will let you borrow up to 80 |
| | | | percent of the appraised value of your home, |
| Hiring Help | | | | minus the balance on your original mortgage. |
| | | | For example, if your home is appraised at |
| Let's face it, home projects can be | | | | $100,000 and your current mortgage balance is |
| expensive. You may be tempted to tackle them | | | | $70,000, you may be able to borrow $10,000 by |
| yourself as a way to save money. For small | | | | way of a second mortgage. You may also incur |
| projects, that may be a smart move. You don't | | | | all the fees normally associated with a |
| have to wait for someone else to fit your | | | | mortgage - closing costs, title insurance and |
| house into their schedule, and you can take | | | | processing fees. Talk to your tax advisor |
| pride in doing the work yourself. Unless | | | | about whether the interest on a second |
| you're particularly handy, however, large | | | | mortgage may be tax-deductible. |
| home improvement projects are better left to | | | | |
| the pros. If you're remodeling the kitchen, | | | | Refinancing: This involves paying off your |
| ask yourself if you can handle the plumbing, | | | | old loan and taking out a new mortgage on |
| electrical and carpentry work. And don't | | | | your home. To refinance, generally you'll |
| forget that you need to finish it all | | | | need to have equity in your home, a solid |
| quickly, because in the meantime you'll be | | | | credit rating and a steady income. You'll |
| without a kitchen and eating out can be | | | | incur all the closing costs that go along |
| costly. Keep in mind, do-it-yourself jobs | | | | with getting a new mortgage, so unless you're |
| generally take more time and you're | | | | doing extensive remodeling and can get a |
| responsible for obtaining the necessary | | | | mortgage interest rate at least two points |
| permits and inspections. | | | | less than you're currently paying, this type |
| | | | of loan may not be for you. |
| Hiring people who have experience can save | | | | |