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Quality
Craftsmanship
In The Greater Portland Area |
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Remodeling
Upgrade: The Frame Work
Supporting it...
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Most people
remodel because they want to make
their home more comfortable,
attractive or functional. But
there's another good reason to
remodel. Improving your home can
increase its value. And for most
people, their home is their
greatest asset.
Trade magazine Remodeling and the
National Association of Realtors
annually co-publish a cost vs.
value study which documents the
immediate resale value added to a
home by the most popular
remodeling projects. The figures
are gratifying for anyone who has
shelled out a significant amount
of money on home improvements and
encouraging for someone who might
want to do the same thing
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Remodeling
can be money in the bank...
Here are some national averages
for the value of popular
remodeling projects:
- Minor
kitchen remodel: 81
percent
- Bathroom
addition using existing
space: 72 percent
- Family
room addition: 71 percent
- Master
suite: 68 percent
- Two-story
addition: 62 percent
- Deck
addition: 54 percent
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If you have seen this study
before and think these numbers
are lower than you remember, you
are correct. Previously the
study's methodology wasn't very
scientific. It focused on the
opinions of real estate
professionals in 60 housing
markets around the country - some
of whom were in the business of
selling homes for rehabilitation.
Last year, in response to
criticism, the Realtors added
appraisers to the group of
estimators. While this presumably
improved the quality of the
estimates, it also lowered the
return-on-investment values since
appraisers tend by their job
description to be conservative.
So while the numbers may not look
quite so promising as they have
previously, the news may actually
be better for homeowners since it
is probably closer to the truth.
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| Choose
the right project... |
According to Remodeling,
there are several
significant points that
anyone might take to
heart when they consider
a project.
Minor kitchen remodeling
- which includes nothing
fancier than paint, vinyl
flooring, new appliances,
new laminate countertops
and refacing the cabinets
- is a can't-miss
project. Remodeling
estimated the cost
nationally of doing this
to a 200 square foot
dated but otherwise
functional kitchen with
30 lineal feet of
cabinets and countertops
to cost $8,635. If the
homeowner turned around
and resold the house
within a year, she will
get back $7,041, or 81
percent of the money that
she spent. That's
impressive.
The figures are almost as
good for adding a bath.
In a house that has fewer
than two full baths -
maybe just a bath and a
lavatory - the addition
of a 6-foot-by-8-foot
bath in existing space
will cost $13,918 on
average nationally. A
seller will recoup
$10,000 or 72 percent of
that within a year. In
some cities where the
housing stock is old and
the market is hot, the
numbers are far better.
There are a couple of
caveats. To be that
valuable, a bath must be
convenient to bedrooms
and include a standard
bathtub with a shower.
Experts say anything less
will have diminished
value.
Another relatively
small-dollar project with
healthy repayment is the
addition of a home
office. To take a den or
fourth, small bedroom and
build in cabinetry,
electrical and phone
connections to allow
someone to do business at
home costs about $8,356.
But nationally it has a
surprising 50 percent
return on investment.
That number jumps to more
than 100 percent in areas
like San Francisco and
suburban New York/New
Jersey, where
telecommuting and
self-employment are more
popular.
Less sexy home projects
also have a good return
on investment. New
windows cost on average
nationally $7,531. That
investment would return
56 percent, or $4,226.
Regional differences are
especially strong in this
category. In the East,
with its older homes and
cold winter weather, the
return averages 61
percent. In the South,
where the weather is
milder and many of the
homes newer, homeowners
recoup only 48 percent.
Another project that
returns well in the East,
but doesn't do so well in
warmer parts of the
country is replacement
siding. Recovering a
house with vinyl siding -
the most popular variety
- costs $6,072 in the
East and returns 70
percent within the first
year. The number falls to
48 percent in the West,
where stucco is the
preferred material.
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| First
rule: do the job well... |
One of the things that Realtors
and Remodeling magazine emphasize
is the importance of doing the
job well. No project is worth
very much if it is badly
conceived and poorly executed.
The National Association of the
Remodeling Industry says these
are the top 10 mistakes
homeowners make when they
undertake a remodeling project.
- Hire
the wrong contractor.
Make sure that the
contractor you hire will
be skillful, work hard,
stay within his budget
and finish the job
promptly.
- Poor
planning. Planning is not
the place to scrimp. Use
an architect, a
design-build contractor
or a designer who will
listen to what you want,
provide excellent
suggestions and help you
follow through.
- Making
ill-informed decisions.
Contractors say the best
customer is an informed
one. Start with the basic
information and then
learn all you can about
the project you propose
to undertake.
- Going
cheap on materials. You
may be tempted to save a
few bucks by buying
things that are good
enough. But you'll have
to live with your
mistakes, so buy
materials that are built
to last.
- Doing
it yourself. Contractors
hate to pick up the
pieces from failed
projects. Most homeowners
don't have the skill to
do a job professionally.
- Timing
it badly. Hiring someone
to remodel the family
room days before Junior's
high school graduation
party will almost
guarantee that the job
will be done in a rush
and some aspects of it
will be neglected.
- Stacking
the jobs. The kitchen
remodel is going so well,
that you also undertake a
bathroom update and bring
the heating contractor in
to add air conditioning.
Pretty soon chaos reigns.
For sanity's sake, finish
one project before you
start the next.
- Making
it too good for the
neighborhood. If you
already have the nicest
house in the
neighborhood, remodel
frugally because few
buyers will pay more for
a house in a neighborhood
where the average price
is low - no matter how
nice it is.
- Running
out of money. If you
can't pay your bills, the
contractor will be
understandably angry.
- Misunderstanding
the agreement. Putting
everything in writing may
seem unnecessary and like
a lot of work - after all
you're dealing with a
pro. But oral agreements
- even those between
well-meaning people - can
go sour. Work with your
contractor to develop a
contract that includes
everything you expect him
to do, a payment
schedule, a timetable, a
list of products to be
used and a mechanism for
solving problems swiftly.
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| Tips for
handling change... |
Here are some other suggestions
to make your remodeling job go
smoothly.
Figure out how to deal with
change. It's inevitable. The
plumbing fixtures you wanted
aren't available any longer and
the wallpaper is out of stock.
How do you deal with last-minute
substitutions? If possible, look
at the new item in the store. If
not, look in the catalog, and be
available to take a look when it
arrives at your house. If you
don't like the product, the best
time to do something about it is
before installation.
Devise a plan for dealing with
unknowns. Even the smartest, most
competent contractor doesn't know
exactly what he'll find when he
rips off the old siding or tears
out the old plaster. Cost
overruns irritate everybody. The
best way to handle the problem is
to agree in advance on areas of
the job that are unknown and on a
method of estimating the work
involved and assigning it a
financial value.
Some contractors cover these
contingencies with an
"allowance": a separate
estimate within the overall job
price. But other contractors
prefer a "time and
materials" approach. This
means you agree on an hourly or
daily rate for labor and pay for
materials upon receipt for those
portions of the job that are
impossible to estimate. Either
payment approach has drawbacks.
But don't forget: put the new
specifications in writing.
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| FAQs... |
Which job returns the most on
your investment?
Updating the kitchen has a very
quick pay-off - 81 percent within
the first year. And you don't
even have to move walls and
replace cabinets. A little paint,
some new countertops and updated
floor may be enough.
How do I make sure I get what I
want from the contractor I hire?
Be straightforward about your
requirements, and in return,
listen closely to what the
professional has to say. Before
you ink the deal, get all the
specifications, including payment
arrangements and a timetable, in
writing.
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| Ready,
set, remodel... |
While the contractor is
going to do all the
physical work, you don't
get off scot-free. Here
are six simple things you
can do to make sure your
remodeling project gets
started on time and goes
smoothly.
- Clear
the area around where the
work is going to be done.
You don't have to move
heavy furniture - that's
their job - but getting
rid of the knick-knacks
and the small stuff will
ensure that nothing is
lost or broken. It will
get the real work started
more quickly.
- Identify
an area to store new
materials so they are
accessible and ready for
installation - and you
won't be stumbling over
them.
- Make
sure you know where the
breaker or fuse box is,
and how to turn off the
main water line. If there
is going to be any
digging in this project,
call the utility company
and get the location of
your underground gas and
power lines. Put a little
flag near them to help
prevent damage.
- Your
contractor will take the
construction debris with
him when he goes, but may
need a place to store it
in the meantime. Choose a
temporary site. If you
are renting construction
dumpster, decide where
that is going to go.
- If
you're not going to be
around while the work is
done, give the contractor
or his foreman your phone
number, so you can be
reached right away if
needed.
- Know
where the contract is
filed for a quick
reference to resolve
questions, or if you need
to call the contractor
after he has gone home.
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