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| You need to update the out-of-date.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