Tips from the Pros

Questions:

We have gathered a slew of questions that most homeowners about to engage in a remodel are plagued with, and have provided answers to the questions, from the professionals.

• How do I find a remodelor in the New Orleans area?
• What Questions should you ask your builder?
• Should you do your remodeling project yourself?
• How much will a remodel cost?
• What should you know about your new home walk through?
• Will a remodel raise the value of my home?

How do I find a remodelor in the New Orleans area?

Finding a remodeler who fits your needs takes planning and effort, but it is worth spending the time to ensure that you are satisfied with your completed remodel.

• Get referrals from family and friends who have had good experiences with contractors in the area.
• Get a list of local remodelers from the Home Builders Association of Greater New Orleans.
• Make sure that you contact the Louisiana Licensing Board for Contractors to ensure that the contractor you are hiring is licensed.
• Check to make sure that your contractor is insured. Find out what company their policy is with and call the company to make sure that the policy is current.
• The way a remodeler runs his or her business is a reflection of how they will run a remodeling project on your home, so pay careful attention to their
• Over the course of your remodel you will interact with your remodeler and those working for him or her on a regular basis, if you do not get along with a remodeler during an interview then you should think twice before hiring them.
• Check out a builder/remodeler’s reputation in the local community, with past customers, and with local bulding supply companies.
• Does the remodeler have a Certified Graduate Remodeler (CGR) certification? The certification indicates that they have met a prescribed set of educational requirements and follow a strict code of business ethics.
• Find out if the remodeler is familiar with the different types of homes in the area.
• Does the remodeler understand what you want out of your remodel?
• Does the remodeler offer you a timeline and prepare for any decisions you will have to make, and inconveniences that may arise?

What Questions should you ask your builder?

There are many important questions to ask your builder before committing to a new home. Here are a few that will be helpful:

• Will the builder give you references of recent buyers and occupants?
• Does the builder have a financing plan established?
• Are there options in the floor plan?
• Can a room such as the basement be left unfinished?
• How much “customizing” can be done versus standard features?
• Can appliances be upgraded or downgraded?
• Are there any additional fees relating to the home or development?
• Does the builder offer a warranty program?
• Does the price include landscaping?
• Are there any restrictive covenants?
• What are the estimated taxes on the property?
• How is the school system rated?
• Are day care and grocery stores convenient and satisfactory?
• Are emergency facilities close by? Police? Hospital? Fire department?
• Are there any major development plans for the area for the next five years?

Should you do your remodeling project yourself?

Think Twice Before You Remodel Yourself

Despite the popularity of home remodeling do-it-yourself (DIY) television shows, home owners should think twice before tackling a large remodeling project by themselves, cautions the National Association of Home Builders (NAHB) Remodelers Council. According to the U.S. Census Bureau, homeowner DIY projects account for 20 percent of all remodeling and industry experts say that between 25 percent and 30 percent of their work comes from fixing DIY disasters.

“With the popularity of all of these shows dedicated to projects that home owners can do themselves, it is important that home owners understand that these shows hire professionals to do the work and make it look easy,” says Remodelers Council Chairman Don Novak, CGR, CAPS, CGB of Novak Construction Co., Cedar Rapids, Iowa. “Embarking on a home project without the needed planning and expertise can be very expensive and can have a negative effect on home equity.”

While a motivated, skilled DIYer may do a remodel as well as a professional remodeler, you should ask yourself these questions first: • Have you ever done this before? • How much money will you really save? (To get a true sense of actual costs of a project, take what you think it will cost in time and money and multiply by three.) • Will you know what to do when something goes wrong?

If you are willing to put the time and energy into a do-it-yourself home remodel, the Remodelers Council advises:

• Follow product directions
• Get a detailed, illustrated home repair and maintenance book
• Do very careful and thorough preparation: Set everything up and protect surrounding surfaces
• Practice with the tools
• Follow safety procedures and use proper safety equipment.

• Electrical – unless you are a licensed electrician do not attempt to rewire their home. If done improperly you can burn down your house.
• Structural Changes – removing or adding any walls or cutting holes into the roof, can compromise the structural integrity of your home and leave you with a really big hole in your roof.
• Plumbing – moving or adding pipes incorrectly can create a swimming pool in your home.

The Remodelers Council of the Home Builders Association of Greater New Orleans reminds you to only trust your dreams for your home to a qualified professional remodeler!

How much will a remodel cost?

Everyone is familiar with the saying “you get what you pay for,” but many people conveniently forget this when they are searching for a remodeler for their next project.

Every homeowner wants a high quality job done, but we are also driven to search for the best value for our money-this means we want to pay as little as possible. It is of course expected that price is one of the biggest concerns a consumer has when remodeling.

It is important to remember that remodeling is product and a service. The materials that go into a project are only part of the finished job. The hard work that remodelers do to organize work, and bring together all elements of a job is just one of the intangibles that go into any remodeling job.

Instead of hiring a remodeler based solely on price, start with a search focusing on finding a professional licensed remodeler, then get bids for your remodeling job. If the bids you get are higher than you initially budgeted for your remodel, talk to the remodeler and see where you can cut back, or what can be postponed to keep the project on budget.

Experience - Find out how long the remodeler has been in business. Longevity shows financial stability, and you want your remodeler to be around after your project is finished in case anything goes wrong.

Business Credentials - Check to see if the remodeler is a member of the Home Builders Association of Greater New Orleans, and if they are an active member of the Remodelers Council. Being active in the Remodelers council of the HBA means that a remodeler is exposed to new products, construction techniques, business practices, and industry issues. Also, participation in the council shows a remodeler’s commitment to professionalism and to the industry itself. License and Insurance-Ask to see the remodeler’s license, and insurance, call the Louisiana State Licensing Board for Contractors to make sure that their license is current. Make certain that the remodeler has workers compensation and liability insurance before you hire them; it is best to actually call the insurance company to verify that the policy is current.

If your goal is a professional remodeling project, then your best bet is to hire a professional remodeler. The extra cost will pay for itself in the satisfaction you receive while the project is in progress and during the many years you will enjoy the completed project.

What should you know about your new home walk through?

Before you go to settlement on a new home, you and your builder will do a "walk through" to conduct a final inspection. The walk-through provides an opportunity for you to spot items, which may need to be corrected or adjusted, and allows you to learn about the way your new home works.

Often, a builder will use the walk to educate buyers about:

• the operation of the house's components.
• the buyer's responsibilities for maintenance and upkeep.
• Warranty coverage and procedures.
• The larger community in which the home is located.

Part of your “walk through” will be learning about maintenance and upkeep responsibilities. Most new homes come with a one-year warranty on workmanship and materials. However, such warranties do not cover problems that develop because of failure to perform required maintenance. Many builders provide a booklet explaining common upkeep responsibilities of new homeowners and how to perform them.

Should a warranted problem arise after you move in, the builder is likely to have a set of warranty service procedures to follow. Except in emergencies, requests for service should be in writing. This is not because the builder is trying to be bureaucratic, but to ensure that everyone clearly understands the service to be performed. The person receiving a service request is not likely to be the person performing the work, and you don't want to rely on word of mouth for transmission of your service order.

Many builders schedule two visits during the first year -- one near the beginning and the other near the end -- to make necessary adjustments and to perform work of a non-emergency nature. You should not expect a builder to rush out immediately for a problem such as a nail pop in your drywall. Such problems occur because of the natural settling of the house and are best addressed in one visit near the end of the first year.

If you have moved to a new home from a nearby area, you probably will not spend much time at the walk-through talking about the larger community in which the home is located. However, if you are moving to a new community, a builder can often provide a packet of material to help you become familiar with your new community.

When inspecting the house, an effective way to handle this is with a checklist. The list should include everything that needs attention, and you and your builder should agree to a timetable for repairs. Builders prefer to remedy problems before you move in since it is easier for them to work in an empty house. Some items may have to be corrected after move-in. For instance, if your walk-through is in the winter, your builder may have to delay landscaping adjustments until spring.

It is important that you be thorough and observant during the walk-through. Examine all surfaces of counters, fixtures, floors and walls for possible damage carefully. Sometimes disputes arise because a buyer may discover a gouge in a counter top after move-in, and there is no way to prove whether it was caused by the builder's workers or the buyer's movers. Many builders ask their buyers to sign a form at the walk-through stating that all surfaces have been inspected and that there were no damage other than what has been noted on the walk-through checklist. Ask a lot of questions during the walk-through and take notes on the answers. Never be afraid to appear stupid by asking too many questions. That is how you learn. It is important to view the walk-through as a positive learning experience, which will enhance your enjoyment of your home.

Will a remodel raise the value of my home?

Although few of us purchase a home strictly for its investment value, in practical terms it represents an asset that can pay high returns when it comes time to either refinance the mortgage or sell your home outright. Of course, a home that is well-maintained and offers up-to-date systems and amenities will have a higher value than a comparable home that is poorly maintained or lacking the conveniences and extra living space that today’s buyers want. Remodeling, then, becomes the key to protecting and enhancing the investment value of your home, not to mention its many other benefits. There are several factors driving the demand for remodeling, but one of the most important is the sharp increase in housing values over the last several years. With home prices escalating virtually almost everywhere, and in some metro areas at double-digit rates, more homeowners are turning toward remodeling to add to their enjoyment of living in the home, but also to boost the value of their original investment.

To answer that question, it is important to understand that remodeling – and your home for that matter – are different from other investments that are primarily financial in nature. What’s unique about housing is that the “investor” or owner receives the immediate benefit of being able to occupy and enjoy their investment; i.e., live in it, all the while it is growing in value. Stocks and bonds don’t deliver on this aspect. The longer you intend to stay in your home and will enjoy the new family room or whatever improvement you make, the more weight this factor contributes to your overall return on investment. The other part of your investment return is the increase in resale value that the remodel adds to your home. Ultimately it is a professional real estate appraiser who will decide the financial return of any remodeling you do through the price he or she assigns to your home when you decide to refinance your mortgage or sell your home. The cold hard truth, however, is that real estate appraisals are more an art than an exacting science.

The price of your home will largely depend on the prices that comparable homes recently sold for in your neighborhood. The value assigned to the improvements you made to your home depends on a number of variables but depend heavily on the location of your home as well as its overall condition. Some remodeling projects lift the value of a home by the entire cost of the remodel and sometimes by even more.

Despite the limitations of the appraisal process in allotting what you might consider fair value for all the improvements that you proudly made to your home since first moving in, there are certain rules that you should consider to increase the dollars you get back from your remodeling investment.

• Maintaining your home in good repair is the most critical of all investments that you can make to your home. The shape it’s in matters as much if not more than what other attributes your home may have.
• The quality of the work you have done on your home is another factor that can’t be ignored, if you are looking to make a good investment. Shoddy workmanship, low-grade materials and inferior products will wipe out any value the remodeling might have added to your home.
• Remodel for yourself and your own family, not the next owner. It is a gamble to predict what the likes and dislikes of the next owner might be. Keep in mind, however, the more your tastes stray from the norm of most of your neighbors, the less likely you are to get maximum return from your improvements. Stay with styles, colors and features that have broad appeal.
• Kitchens and bath remodels are the two most popular remodeling projects year-in and year-out, no matter where you live. Minor kitchen remodels tend to recoup more of their costs than major kitchen remodels. Bathroom remodels also vary on how much they add to resale value, depending on the extent of the makeover. These two rooms carry the most weight when it comes time to sell your home. Attractive kitchens and baths fully outfitted with popular features will not only help sell your home faster, they also can drive the price a buyer is willing to pay for your home.
• Extra space in the right place offers a high rate of return since existing homes tend to lack the roominess of new homes. New family rooms, larger master bedroom suites and eat-in kitchens are all examples of spaces that most buyers value highly.

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