Some people love projects, others despise them, but the majority of us fall somewhere between the extremes. There are the gung-ho types and the procrastinators, the experts and the originators, the slackers and the mind-boggled. No matter your type, if you are a homeowner, at some time or another you will be called to task. Home improvement is part and parcel of homeownership whether you do it yourself or hire an expert.
If you are like most of us, a GPS for home improvement projects might be helpful in getting you from here to there more quickly—better than going in circles trying to decide how to begin and what to do next. If you are considering a home improvement project, check out the suggestions below.
1. Outline Your Project
Think your project through from beginning to end, especially if it is a complicated one. Put it on paper as if it is as valuable as a legal document. The simple act of writing it down from A to Z will force you to consider all the angles. Start with asking yourself the reason for the project. What do you hope to accomplish? What are your expectations for the finished product-a more beautiful home, an uncluttered storage space, a place to luxuriate?
For example, if your roof is leaking and you need a new one, the reason for replacing it is obvious and the expected outcome is an intact roof. That’s pretty straightforward. But sometimes we begin a project for a particular reason only to discover that our expectations of the finished product were unrealistic from the beginning. This can lead to disappointment and sometimes even a waste of money.
To illustrate, let’s say you want to sell your home for the highest possible price, but you know your outdated kitchen is going to be a stumbling block. You spend an appreciable amount of money replacing the counter top with granite, purchasing all new appliances, laying a new floor, wiring for recessed ceiling and under-the-counter lighting, and installing a new sink, faucet and handles. When you proudly show off your new kitchen to your real estate agent commenting on its value relative to the sale price, she looks suddenly sympathetic and simultaneously crestfallen. “What?” you say. She explains that a month ago the property abutting yours was declared the new site for the town’s transportation department. The value of your home plummeted a month ago, about the time you began your renovation. Ouch! The moral to this sad story is, before you begin any project think through your motivations and expectations. They should be in sync.
As you write down each step of your project be mindful of all the details. Will the project require special tools, is your plan too ambitious, will you need the assistance of a carpenter, an electrician, a plumber? Do you know what is inside the wall you want to remove—heating ducts, wiring, a waste discharge pipe? What materials will you need?
How will you dispose of any materials that you remove like an old floor or kitchen cabinets? Leave no detail to chance. This is the time to be thoughtful and exact.
2. Know Your Limits and When to Hire an Expert
We’ve all seen the carton of the helpful husband under the sink who insists he can repair the leak even as water is spewing from the pipe and flooding the kitchen. Depending on the extent and complexity of your proposed project, just saying “no” to doing-it-yourself may be the wisest course of action.
On the other hand, if you like to do the kind of work that your project requires and you are capable, by all means, have at it. Everyone likes to save money where possible. In some instances, the project may be such that all you need is a little professional assistance after you have completed the bulk of the work. Often, even when a general contractor is hired, you can save yourself money by doing some of the legwork such as purchasing and delivering materials to the job site. If you are fortunate enough to know good carpenters, plumbers, electricians, sheetrock specialists and so on, you may prefer to act as your own general contractor, hiring professionals as the job requires.
The key here is to know what you are and are not capable of doing safely and with competency. There is no point in taking on a project that is beyond your ability with the notion of saving on the cost of labor only to run into difficulty that may require costly repairs in the end.
3. Know Your Materials
A cost of any project is materials. If you are planning to do the project yourself, it is important to know as much as you can about the materials you plan to use, how much you will need and where your purchase points are. Familiarize yourself with the difference between materials of the same type before making a selection and comparison-shop the prices. You’ll want to consider if the material is appropriate for its intended use, durable, easy to install, and if it comes with a warranty? Don’t be blindsided by come-on sales and closeouts on materials like appliances or flooring material in an effort to save money. Should a problem arise in the future, discontinued appliances, remnants and left-over items that may be defective might be difficult to replace or repair. However, if you really know your materials and have thought through the use of a close-out item, a bargain is a bargain. Consider any special tools or equipment you may have to rent like a dumpster or a tile cutter and add these to your materials list, including the rental cost.
4. Financing Your Project
If you have outlined your project as suggested, you should have a clear idea of what your expenses will be. You have decided the parts of the project that you will complete, the services like plumbing and wiring that you will need to contract out and the materials that will be required. Now it’s time to put pencil to paper and create a budget. Start with the cost of materials and list each item that will be included in the project, followed by the quantity and the price. If you plan to hire experts for some part of the job, contact each for a written estimate. When all the facts are in, you should have a complete list of the cost of labor and materials. Don’t forget to add tax, the cost of any permits you may have to obtain and the cost of dumping and hauling. If you have decided to hire a contractor to do the work for you, he will give you a detailed written estimate that itemizes the materials by quantity and cost as well as the cost of labor for each step of the project.
With the cost of your project on paper, it is time to decide how it will be financed. If it is a small project such as adding a fence or merely a cosmetic facelift for your bathroom, there may be no need for special financing. However, if your project is a large one or if you plan a number of home improvement projects over a period of time, you may want to ask your lender about a line of credit or a home equity loan.
A home equity loan is secured by the equity you have in your home and works this way: (1) The bank agrees to lend you a certain sum of money over a period of time, usually 5 to 10 years. (2) When you need to pay contractors or buy materials for your project, you simply “draw down” the amount you need when you need it. (3) You pay interest only on what you have “drawn down” or the amount you borrow, not on the total amount of your credit line. (4) The interest that you do pay is sometimes tax deductible if you qualify. (5) Use as much or as little of the total sum or credit line that the bank offers to finance your project.
Whether you use a home equity loan or pay for your project out-of-pocket, maintain a cash flow account of your activities. This will afford a quick overview of dollars in and dollars out, for what, for whom and when.
Check to see if you can take advantage of energy tax credits. You may want to plan your project around any such tax advantages as may be available at the time.
5. Set a Time Line and Stick to It
There are those who begin a project only to devote every spare minute to its completion, those who need prodding throughout the entire implementation and those who complete nearly every part of a project except for a few minor details left undone at the end. As in all things, moderation is the name of the game. Neglecting your family commitments for a project creates dissension, nagging yourself through a project makes it less than fun, and an uncompleted project undoes all your prior hard work.
If you decide on a time line for each stage of your project, commit it to paper and vow to stick to it, your project will flow more seamlessly than if you work on it haphazardly. A time line provides structure for your project and allows you to allocate your time more effectively between your family commitments, your job, and your recreational needs. If you have hired a contractor, insist on a time line in the estimate. Having advanced notice when parts of the project will affect your daily living activities allows you to plan accordingly such as eating out if your kitchen is being rewired or staying overnight in a motel because all the floors are being refinished.
6. Safety First
When you are outlining your project as discussed in step 1, make a note of any safety issues that may come into play. Do you need goggles when you cut tile? Do you know how to operate rental equipment safely? Will your current electrical amperage support additional appliances or do you need to upgrade your electrical system? If you are excavating, do you know where your underground drains, pipes, leaching fields and electrical cables are? Are your tools safe? Do you need a stronger sawhorse or a more stable ladder? Don’t take risks in areas where you are inexperienced such as attempting to add a cupola to a tall roof or re-pointing an exterior chimney. Many so-called accidents are not accidents at all. Rather, they are the result of inadequate planning, unnecessary risk-taking, inexperience, poor judgment or disregard of common safety measures.
Safety also applies to the materials you select. Make sure the materials you plan to use are free of structural defect and toxic properties (like Chinese drywall) and that the manner in which you use them is in keeping with directions, such as applying volatile compounds in well ventilated areas.
7. Purchasing More for Less
As mentioned above, a bargain isn’t a bargain if the material you purchase is defective, obsolete or unsafe. But there are ways to spread your dollar a bit further. The most obvious savings can be had by comparison shopping, waiting for sales, sending for rebates, buying in bulk and using a credit card designed especially for home improvement projects. These cards offer rebates for every dollar you purchase in home improvement centers so today’s tile purchase may give you points toward dollars off tomorrow’s purchase. Read the fineprint and use the card responsibly.
Many wholesale, discount and specialty sellers of products and materials can save you money too. But be sure to check return policies and shipping charges; otherwise, you may not save yourself any money at all. Picking up your own materials as opposed to having them delivered can also save you money as can things like making your own templates for counter tops-only if you are positive your measurement is accurate. Examine your outline carefully for sections where you might be able to stretch your dollar a bit further. Don’t hesitate to ask your supplier for discounts and your contractor for direction as to how you might save on labor costs.
8. Know When to Stop Improving
While nothing short of a disaster like a flooded basement or a kitchen fire will prod some homeowners into undertaking a home improvement project, others are so eager they over-improve. Yes, it is possible to over-improve depending on the criteria you use. If you are hooked on the sheer joy of doing home improvement projects or simply want to improve your home for your own pleasure and comfort, then any project that contributes to your happiness is important. But, if your home improvement projects are designed with a return on your investment in mind, then you will have to do a little research first to determine which projects will give you the best return. A visit to NAR’s (National Association of Realtors) website, www.Realtor.org, and NAHB’s (National Association of Home Builders) website, www.NAHB.org, will get you started looking in the right direction. Other resources are your local homebuilder’s association (find yours on the NAHB website) and a trusted realtor in your area. Interestingly, what can be recouped on a home improvement investment does vary from one area of the country to another so be sure to check these local resources.
9. Finding Inspiration
Look for inspiration in magazines, home decorating and home remodeling websites, books, even the homes of your friends. It is nearly impossible to look at completed home improvement projects without coveting at least one of the ideas. If you feel overwhelmed, start with a simple project like painting a room or caulking a tub. Success breeds success and soon you will be on your way, undaunted, to larger projects.
10. Locating the Right Contractor
Whether you require a professional for the entire job or only part of a job, it is important to check a contractor’s credentials. State licensing agencies and your Better Business Bureau can verify the legitimacy of licenses and check for complaints. Ask for references and follow up with phone calls to past customers. Always use a contractor who is insured should something go wrong (and for that matter, make sure you are insured against liability if people will be working on your property). Every job, no matter how small should be written in an estimate that clearly spells out and itemizes labor and material costs, tax and any other expected expenses. Finally, watch out for the scam artists who will try to take advantage of you. If a contractor makes any of the following claims, comments or promises, give him the boot:
- “We offer rebates to our customers if we can use your job as an example for our business.” (A sales gimmick that honest contractors don’t need. You’ll end up paying more.)
- · “I can tell by looking what the price will be” or “let’s shake on it.” (These comments should send up a red flag immediately. As mentioned, always get a written estimate and once the job is agreed to, the estimate should be signed by both you and the contractor. This is your proof of purchase, so to speak. Take nothing for granted.)
- “If you contract with us today you’ll qualify for a price reduction, but hurry because the price goes up tomorrow.” (Estimates or bids on jobs should be good for 30 days. If it sounds like bribery, it probably is.)
- “I like to protect my customer’s privacy so I don’t provide references.” (Pretty obvious there may be something to hide.)
- “Work permits will be up to you.” (No, this is the contractor’s job.)
- “This comes with a warranty, but there is an extra fee for it.” (If materials like windows come with warranties from the supplier, there is no additional fee except for what this contractor expects to put into his pocket.)
A word of warning: Sometimes contractors will offer you a lower price if you pay in cash for the work done because the contractor is planning to hide income from the IRS to avoid paying taxes. Don’t get involved in a scheme like this, it is fraud.
