Congratulation to Tom Lesage, Today's 10th caller and WINNER of the Attic Breeze Solar Fan. He will enjoy the energy savings and cool attic benefits from now on... Thanks for listening Tom. Congratulations to the nine before Tom that won two FREE tickets to the 7th Annual Home and Garden show in the Woodlands, TX coming up Aug 29th & 30th. I'll catch you next Sunday....
The Topic for Today’s show is the 10 most common mistakes people make when contracting for home Improvements.
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1. OVER IMPROVING – This is the #1 mistake most people make. While many projects contribute real value to your property, others have about same resale value as a used lottery ticket. If the value of your current home plus the cost of the improvement you’ve planned far exceeds the average home value in your area, you will be unlikely to get a significant return on your home improvement investment. An easy way to check this is to have a realtor pull comps in your area or contact an appraiser and hire them to do an in-file. Many will provide this service at a reduced cost because they are not required to write up a complete appraisal.
Some of the best improvements you can make are Bathrooms, kitchen and decks. These usually provide the best
return on investment. Room Additions can be good or bad depending on the area you are living in and the size homes around you compared to the size of your home. Projects geared more toward personal taste like decorating, for example, usually won’t significantly improve your value, so only do those if you expect to live in the home long enough to enjoy them.
2. PLANNING MAKES PERFECT - Before hiring a remodeling
contractor, do your homework online or go to your local library and search home improvement web sites for ideas. By using the Internet, you’ll find the most current products and services to help make your home improvement dreams come true. Hire an architect, interior designer or construction consultant (like myself) to develop specifications or “specs”. Specs provide you a clear set of parameters and details to assure all home improvement professionals you are working with will have the same information to bid your job. Don’t let then talk you into spec changes until you have contracted them. Make them bid on the same specs to compare cost and services. To get the best quality and most for your money, I would get competitive bids from 3 contractors. This only works with detailed specs.
Hiring a Contractor: Sometimes people try and over simplify a projects complexity and contract handymen to do the work thinking they will save a lot of money. This can get nasty quickly and could double your cost as well as inconvenience. Handymen are certainly a needed resource but they are best utilized for minor repairs. Remember, they want to do the work. They are not set up to manage major projects like kitchen remodels and typically don’t have the proper insurance coverage in case of injury. You also want to make sure all of your work is backed by warrantees and that you are protected by state sponsored consumer laws.
3. Budgeting – One of the most frustrating areas of making home improvements is understanding your potential costs before jumping in. But if you know where to look, getting an idea of costs for the most common projects – kitchens, bathrooms, windows, HVAC and roof replacements is easy. You can go to Purchase Like Pros.com and sign-up for the Pro-Power e-Card and get complete access to pro suppliers throughout the greater Houston area. This service is free and immediate. Then get on-line, look for pictures of the styles and environments that appeal to you and print them out. Then get a list of suppliers and showrooms from Purchase Like Pros and start shopping. These locations will give you pricing and sales support if you have your e-Card and ID. Not to mention, in most cases, you have about 10% more buying power than an average size contractor and access to millions in liquidation items at 30 to 40 cents on the dollar.
4. DEED RESTRICTIONS - While building a new shed or installing an outdoor kitchen might seem like an easy-enough home improvement project, it can quickly turn into a legal nightmare if you don’t first check with your Home Owners Association, Deed Restrictions and City Permitting Department for your property approvals.
“Contractors won’t always warn you to check for these requirements before starting your project. If a Contractor wants your project, they should be happy to invest a phone call or two and review your deed restrictions to see if you are able to implement your desired upgrades. Besides, until these things are defined how can they estimate cost or clarify a scope of work. This is the foundation for your agreement.
In most subdivisions you must request approval from your HOA and the City Permits Department in the county or city before beginning any improvements. If your project gets completed without approvals, a violation could provoke your HOA to take legal action against you or could haunt you years later when it comes time to sell your home.
5. KNOW YOUR LIMITATIONS – Picking up a hammer or paint brush is well within the skill set of most home self-improvers, but bigger tools might best be left to the pros to avoid unpredictable results. Over the years I have seen load baring walls removed that created major structural failure. Your thinking, hey if we could move this wall over a couple of feet I can put my mothers antique chest their. The husband says,” I have a buddy that can help me, it’s only a 5’ wall.” Big Mistake! If you are attempting this type of work or thinking of closing in the attic and creating living space, consult with a professional first. Even if you want to attempt this yourself, hire a contractor or engineer to inspect the area and advise you on how to execute the work properly and list any required inspection. I highly recommend, you have all major changes inspected by a state licensed inspector to insure code compliance and quality of workmanship.
6. HIRE WITH CARE –Once your plans are set, the next challenge is to hire a
home improvement contractor. While word-of-mouth referrals can be helpful, finding qualified contractors is a big challenge. I would recommend going to the (GHBA)Greater Houston Home Builders Association, Purchase Like Pros, Bay Area Builders Association or (NARI) National Association of Remodelers Industry. On-line referral services don’t know anything about our local talent or Dailey changes in our business climate. These organization know what’s going on in Houston Today. Be very Careful picking Contractors from Trade Shows for complex remodeling projects unless they have been established for at least 3 years. Most of them are new in businesses and it is very risky when they don’t have financial depth to repair mistakes they make.
7. CONTRACT REVIEW –Once you’ve chosen a contractor, make sure all of your agreements are in writing. Good contracts include a clear statement of the scope of work, list of materials and equipment to be provided, total contract price and a schedule of payments, job start and completion dates, a statement describing the quality of work to be performed, description of written warrantees for all work, appliances and equipment, a dispute resolution clause and a lien clause stating the owner’s rights under the law as well as lien release requirements. These laws will change at the end of this month when the TRCC is gone. I recommend having an attorney review the contract and insert the required disclosures. If you use a contractor affiliated with the Professional Trade Organizations, like the GHBA and NARI, their contractors should get current and updated Contracts from them.
8. NO PERMIT – Weather you are in the county or city, getting a building permit is a requirement before starting a home improvement project. But while one might think this is an area that the contractor is responsible this isn’t always so.
Many times, contractors will attempt to make getting the permit a responsibility of the home owner. This is a costly mistake. Make the contractor responsible for getting the permit and complying with the local building codes every step of the way. The local building inspector is your best
resource for making sure you get the job done properly.”
9. CHECK INSURANCE – Before your start your project, please call your local insurance agent to check your homeowners policy limits. Since policies are often purchased based on existing house value, you may need to up your limits before starting. Besides
property insurance, it’s also important you make sure anyone working on your property also carries Workman’s Compensation insurance to cover any injuries they may sustain while in your home. This is easy to verify, just ask them to email or fax you a binder from their insurance company with your address on it. This will also detail the specific coverage and limits.
10. MAKE DINNER PLANS – Remember, major remodeling projects can be chaotic. Good contractors will work with you to minimize the inconvenience but the projects will still disrupt your family life. Keep the lines of communication open between yourself and your contractor and what to expect as the project evolves. If improvements include the kitchen or bath, make a back up plans to keep life as normal as possible until your project is complete.
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