Week of May 12th, 2008
Hold that hammer! 5 questions to ask before remodeling:
Excerpted from MarketWatch
Cosmetic fixes or a complete overhaul? DIY or hire a contractor? Sticking around or selling soon? Making good decisions before you begin your renovation can help you avert disaster. Spending on remodeling is expected to reach $316 billion this year alone, and the number is still climbing, according to the Home Improvement Research Institute. So make sure you know exactly how big a renovation you can afford and whether it justifies the time you intend to spend in your revamped home.
The Nest, a home-improvement Web site, says that before making any big changes to your home, you should ask yourself these big questions:
1. How long do I plan to stay in my house after the renovations? The longer you plan to live there, the more creative you can be. But if you’re planning on selling the house in the next five years, keep potential buyers in mind with your choices. In the latter case, for instance, go with neutral colors in the kitchen and bathroom, and consider maple cabinets. Some people hate oak, others hate cherry, but the majority can live with maple.
2. Am I doing just cosmetic fixes or am I ready for an all-out overhaul? It’s OK to make small changes one at a time, but think long-term about the next step. For example, if you’re buying a new sink, buy one with enough holes on the deck for the faucet, sprayer and soap dispenser you might want to add on later. (Cutting more holes into stainless steel or porcelain after the sink is installed is an onerous job you don’t want to get stuck with.) And if you know you’re going to buy new cabinets later, don’t replace the countertop with expensive granite now. The chances of reusing it are very slim — either it breaks when you try to remove it, or it doesn’t match the footprint of the new cabinets.
3. Am I prepared for the home upheaval? Be realistic about how long these changes might take. Renovations can go on for months, so you need to be prepared to make do without that bathroom, kitchen or bedroom. When checking references before you hire your contractor, be sure to ask if the company finished the work on time. You’d be surprised how quickly a week can turn into a month. And if you’re bunking up with your in-laws during renovation, that month can seem like a year.
4. Are the renovations keeping with the style of my home? Any big changes you make to a home inside should reflect what future buyers will expect from the outside. If you live in a Victorian house, don’t make it too contemporary. People who see a historical exterior will expect a historical interior, so stay true to the details. The same goes for a contemporary or modern home, where future buyers may not expect old-fashioned details like antique crown moulding.
5. Are my DIY choices reasonable? You may consider yourself handy, but many do-it-yourself jobs demand your time more than anything else. If you have a full-time job, are you capable of taking on a second one? Some makeovers that are not technically difficult can take longer than you think. For that reason, if you start any job yourself, try to sample it before committing to the whole thing. For example, while refinishing cabinets with a new stain isn’t rocket science, sanding down each one can take forever. If you do plan to follow through with a large-scale renovation, do the smallest room in the house from start to finish — the insulating, rewiring, painting, refinishing, tiling — so you gain a sense of accomplishment.
What upgrades should you choose? The top 10 upgrades to help sell your home!
Preparing your home for the market is often less about aesthetics and more about fixing fundamental flaws. Here are 10 upgrades savvy buyers may be expecting. (source: www.costhelper.com)
1. Copper pipes
Plumbing is usually out of sight and out of mind, but upgrading pipes should be a major priority for sellers of older homes. Copper pipes are a big improvement over galvanized pipes, which corrode over time.
Home era: Pre-1960s
Cost: For a 1,500-square-foot, two-bedroom, 1½-bath house: $2,000 to $15,000-plus
2. Electrical
Homes built before the 1970s often do not have enough electrical "oomph" to run all the electronic gadgets that are part of modern daily life. Today’s homes typically have 200-amp service, so keep your home competitive by upgrading to at least 100 amp.
Home eras: Pre-1960s, 1960s
Cost: To upgrade existing panel to 100 amp: $800 to $1,200
If new panel is needed: $1,500 to $2,500
3. Furnace
Furnaces usually last from 12 to 14 years. Although this upgrade is relatively expensive, you’ll need to bite the bullet if your unit is nearing or has passed its expiration date. People who bought a new home a dozen years ago or so are especially likely to need this replacement.
Home era: 1990s
Cost: $7,000 to $7,500 depending on difficulty of installation.
4. Kitchen cabinets
Refurbishing old cabinets can quickly pull your kitchen into the 21st century. Replace dated cabinet hardware with stainless steel or nickel knobs, pulls and hinges. Bring solid wood cabinets back to life by cleaning, sanding, staining, painting and replacing veneer.
Home era: 1960s
Cost: For 10-by-12-foot kitchen
Stock cabinets: $4,000 to $5,000
Semi-custom: $8,000 to $10,000
Custom: $16,000 to $20,000
5. Kitchen countertops
The saying "all real estate is local" is true right down to the kitchen countertops. In some neighborhoods, laminate is still acceptable. In others, you’ll need to go with granite or Corian. Check out your neighbors’ kitchens to find out what is standard on your block.
Home era: 1980s
Cost: For 30-linear-foot countertops
Laminate or ceramic: $450 to $1,800
Corian or granite: $3,600 to $11,000
6. Roof
Shrewd buyers are always concerned about the age of a home’s roof. Have your roof inspected if it is more than 10 years old. If it makes the grade, include the inspection report in your buyer’s packet. If you must replace, cut costs by choosing 20-year material over 30-year material.
Home era: 1990s
Cost: For 500-square-foot roof
For 25-year shingles: $11,000 to $17,000
For metal: $20,000 to $25,000
7. Siding
A dated exterior can be fatal to your home’s curbside appeal. Sometimes, a fresh coat of paint is all you need to cover a multitude of sins. In other cases, you may need to replace the siding altogether.
Home era: 1970s
Cost: For 1,250 exterior square feet
Painting over exterior: $625 to $1,250
Pine: $6,500 to $7,500
Aluminum: $3,100 to $4,500
Vinyl: $2,500 to $8,750
Cement fiber: $5,600 to $13,539
8. Termite inspection
Termites are tiny insects that love to feast on wood, including timbers in homes. Homes in Southern states are particularly vulnerable to this pest. Termite inspections are relatively cheap and are especially important in older homes.
Home eras: Pre-1960s, 1960s
Cost: $60 to $100
9. Water heater
Water heaters typically last about a decade before running out of steam. Installing a high-efficiency water heater can cut energy use by between 10% and 50%, making your home more attractive to cost-conscious buyers.
Cost: Electric: $100 to $600
Gas: $250 to $1,000
Tankless: $200 to $1,200
Installation for all three: $200 to $400
10. Windows
Single-pane windows have gone the way of lava lamps and beanbag chairs, so be sure to upgrade those aluminum slider windows. Not only will your home look more enticing, but you’ll also trim heating and cooling bills by 25%.
Home era: 1970s
Cost: Replacement windows: $300 to $1,000-plus per window
New windows: $450 to $2,000 per window
Give your home the right makeover for its age
Now that you’ve decided to upgrade, here’s how to hire a good home contractor!
Increasing your property value often entails remodeling. Whether you have a fixer-upper or a great house that you plan to stay in indefinitely, you’ll probably hire a contractor sooner or later to finish the basement, remodel the kitchen, or renovate other rooms. Decisions on home improvement should be made in a judicious manner. If you want to recoup your investment, choose projects that are likely to add value to your home, such as a new kitchen or an extra bathroom. Don’t hand your home-remodeling project to an unreliable or dishonest contractor. Although it’s tempting to hire the contractor who submits the lowest bid, there are other factors to consider:
Experience. The failure of most fledgling contractors can be blamed on poor work habits and shoddy business practices, according to the Small Business Administration. Choose a contractor with a minimum of five years of experience.
License. Most contractors are licensed by the state. While a license alone doesn’t guarantee an excellent contractor, it is one way to weed out unlicensed amateurs. Some states also record complaints filed against contractors—you can look these up using the contractor’s license number.
Bank account. A contractor with five years of experience and a solid record of bank deposits will, in all probability, stay in business long enough to complete your project. It also indicates that the contractor has sufficient capital and doesn’t need your business to pay this month’s bills.
Insurance. The contractor should carry workers’ compensation and general liability insurance. Lack of insurance could leave you liable for any injuries suffered on the job. Get copies of policies from the contractor’s insurance company.
Workmanship. Many contractors carry photo books to show samples of their work. But the only way to judge the workmanship is through an on-site inspection. Ask the contractor for names of recent clients, and arrange to examine projects similar to yours.
Teamwork. The best contractors are those who care about the project as much as you do, and who can work around your schedule and your household’s routines. If you want to be involved in every decision, hire a contractor who’s comfortable with close supervision. If you want to leave the details to an expert, hire a contractor whose decisions you will trust.
The art of the bid
After you have selected several candidates for the project, the next step is to get bids from the contractors. To get comparable bids for the project, write out your project’s specifications, including sample building materials and fixtures, and make copies for each contractor submitting a bid. The more detailed the specifications, the easier it will be to compare bids because all the contractors will be using the same fixtures and materials in their cost breakdown.
Project Specifications
You may want to hire a designer to create project specifications if you’re not comfortable doing them yourself. Specifications for a kitchen remodeling project, for example, might include cabinets, flooring, sinks, faucets, appliances, countertops, doors, windows, and any custom carpentry specifications, such as built-in shelves.
Cost Breakdown
Most contractors have their own breakdown sheets, but you can also provide one to make comparing bids easier:
- Expenses. Itemize tasks such as subcontractor bids, building permits, and finish carpentry.
- Materials. Specify the costs of all building materials.
- Fixtures. List the costs of all fixtures to be installed.
- Labor. Calculate the cost of labor (subcontractor labor should be included under expenses).
- Total. Add the totals from the four categories (expenses, materials, fixtures, labor) to arrive at an estimated bid.