Remodeling and Renovating Chapter 13

Any project that involves changes to a home’s structure or system can be considered remodeling. Reasons for remodeling: Peoples lifestyle changes Physical ability House needs change Wants To increase living space To increase home value Kitchen & bathroom can increase price

Remodeling Versus Buying There are several factors to consider when deciding whether to move or to remodel. Cost a. The expense of remodeling should be weighted against the coat of moving. - Moving cost is estimated to be 8-10% of A home’s value. b. The length of time you plan to stay in the home. If less than two years not worth the financial investment. However bathrooms and kitchens are the exception.

Taxes Convenience Commitment Property taxes are based on a home’s value, which increases with remodeling. Buying or building may also increase taxes. Convenience Schools Employment Desirable Neighborhood Commitment Willing to put in the time and energy needed to complete a project. If done by owner Takes weeks or months to complete Disruptive, Messy and disorderly, Stressful

Types of Remodeling: Changing a Lived-in Area Involves altering space that is already occupied. ex. kitchen/ bathroom Inconvenient is great Less complex 2. Making Unused Space Livable Unfinished areas of a home ex. Attic, basement, porch, attached garage

3. Adding On Buying to Remodel Involves adding on 1 or more rooms. Includes enlarging a room. Should check zoning laws – could restrict size and placement. More complex than altering space Addition must blend architecturally with the existing home Buying to Remodel To buy an older home in need of repair and modernizing. This is called renovation. Restoration is a type of renovation in which an older home is returned to its original state. Conversion is buying a building for the purpose of converting it or changing its use. Ex. Warehouse loft apartment

Planning a Project: Problems in remodeling will be greatly reduced if the project is well planned and carefully organized ahead of time: Can be very satisfying Unexpected work can occur Bad weather Dissatisfied with work Awareness of structure & systems Problems in older homes Engineering inspection firms to check for structural problems

1. Evaluate the Area Foundation – wires and pipes Plumbing , heating and wiring should be checked Upgrading during remodeling less expensive Made sure structure and foundation are sound Hire professionals

2. Deciding on Design Goals Important to do some advance research to identify homeowners preferences Need to have clear ideas Good resources Decorating and remodeling magazines Clip pictures of material, styles, equipment and arrangements Help to communicate to designers and contractors

3. Checking local regulations Should know about any zoning regulations or aesthetic codes that will affect the planned remodeling job. Could receive a fine from local government. A variance is a license to waive a zoning law and is a time-consuming process. Check to see if you require a building permit – altering framework, size or safety to a building.

4. Deciding about financing A home equity loan is money borrowed from a lending institution based on the current market value of a property, minus the amount owed on the mortgage. Drawback – home may be taken by the bank and sold for payment of the loan.

Hiring Professionals Designers Draw up floor plans done to scale. Some may supervise construction process Should check designer’s portfolio Contractors Finding an experienced, reputable contractor is crucial to the success of a remodeling project: Checking references Bids(quotes) and contracts

A bid is an offer from a contractor to complete a project for a certain price. States: (a) work to be done (b) estimates cost of labor (c) materials Contractor requires: (a) homeowner’s plans (b) any specifications from the designer or architect. Get 3 separate bids. The lowest is not always the best.

A contract is a legal binding agreement that states what work the contractor will do and the amount the homeowners will pay. Once signed, the work must be completed for the specific amount. If agreement is not met by either party, legal action may be taken. Some contractors work on a time and material basis- hourly rate-disad. Not sure of the total cost.

Better arrangement is a contract that divides the project into stages and pay contractors a % for the total cost at the completion of each stage. Don’t pay large amount of $ before the project begins. Good communication is essential.

Planning the Schedule Deciding when to do a remodeling project can have a great impact on its outcome. Avoid remodeling: During a major holiday After a significant change in your life Late fall or winter Important to order all materials in advance.

Answer the following questions. Questions: (Chapter 13) Answer the following questions. What are 4 questions that should be asked of a prospective contractor? What are 3 advantages of doing a remodeling project yourself? What are 4 disadvantages of doing a remodeling project yourself?