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 If you're thinking about starting a home remodeling project, you're not alone. According to the latest Census statistics on residential improvements and repairs, Americans will spend nearly $50 million on maintenance and repairs and over $140 million more on improvements, alterations and replacements.
Remodeling a Home
Senior citizens can often benefit the most from home remodeling, especially if they've decided to stay put. It is a well known fact that older people tend to live in older homes that often need repairs and modifications. In fact, over 60% of these persons live in homes that are more than 20 years old. For older individuals, home remodeling can also result in a home that is a safer place to live.
Energy Efficiency
Home remodeling is also a good time to think about increasing the energy efficiency of your home. This is often true during major renovations because of the small incremental cost and inconvenience associated with adding energy efficiency materials to an existing project. And with increasing energy costs, homes built to standards such as those of the Energy Star program are starting to demand a premium price.
If you're remodeling your kitchen, you can add energy efficient appliances and lighting to the new design. Remodeling a bathroom gives you a chance to add energy efficient lighting, windows and even ventilation fans. Any home remodeling project that includes opening walls gives you the opportunity to improve your comfort and the energy efficiency of your home by adding insulation and air sealing materials.
Remodeling Homes and Lead Paint
On thing that you need to be aware of when renovating a home is the possibility of lead exposure as old paint is removed from the home. Young children and even an unborn child can be at risk from lead poisoning. Nearly all of the lead exposure problems in residential home remodeling projects are related to breathing or swallowing lead dust, or by eating soil or paint chips that containing lead.
If your home was built before 1978, Federal law requires that contractors provide lead information to residents before renovating the home. Make sure your contractor has a plan to contain the possible spread of lead through the use of HEPA vacuums, protective polyethylene sheeting and other safety devices.
Hiring a Remodeling Contractor
When hiring a contractor for your home renovation project, make sure you personally interview each contractor. Part of the process of hiring a building contractor should include asking questions such as:
- How long has the company been in business?
- Are they registered or licensed by the state?
- Does the remodeling project require a building permit?
- Will they be using subcontractors to do some of the remodeling work?
- What type of liability insurance does the contractor have? (Contractors should have personal liability, worker's compensation, and property damage insurance.)
Get a list of references and make some telephone calls. If possible, visit a home where the contractor has recently finished a similar renovation. Ask the homeowner what the work ethic was like - Was the worksite messy? Did the work get completed on time and on budget? Would they hire the contractor again?
Working with a Contractor
When negotiating with a contractor, try to limit the size of your down payment. There are some state laws that limit the amount of money a contractor can request as a down payment. Contact your local zoning board or similar municipal agency to find out what the law is in your area.
Paying a General Contractor
Try to make payments that are tied to the amount of work completed. This way, if the job is not going according to schedule, the payments will also be delayed. Lastly and probably the most important point here is don't make the final payment or sign an affidavit of final release until you are satisfied that the work is 100% complete.
Once that final payment is made, there is very little incentive for the builder to finish a job in a timely manner. Builders also have a habit of "moving on" to the next work location before your home remodeling project might be complete. Hold onto that final payment and you're holding onto an insurance policy. If the builder never comes back, you still have enough money to finish the work with another contractor.
Financing Home Renovations
In addition to paying cash for the work on their house, the homeowner also has the option of seeking a personal loan, refinancing an existing mortgage or taking out a second mortgage on the home. Most families today look to local banks and lenders to help pay for their home's renovation or remodeling work.
While there is no doubt that some home remodeling work - especially kitchens and bathrooms - can add a great deal to a home's value, these same repairs can be very expensive. For example, it's not unusual for a homeowner to pay $10,000 - $50,000 to renovate their home.
Refinancing Calculators
In fact, the homeowner can be adding a significant debt burden to their household in terms of monthly loan payments if they decide to take out a loan to pay for the work on their homes.
If you're unsure of how much you can afford, we've got a number of mortgage calculators that can help you figure out the added monthly loan payments. In particular, we have a refinance a mortgage calculator and a blended rate mortgage calculator that can help you see the effect of the remodeling job on your personal finances.
About the Author - Home Remodeling
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