Published: December 18, 2009

The answers to these questions will help you zero in on the architect who's right for your project, your budget, and your personality.
 
The architect you select for your job will determine the look and functionality of your home improvement project, along with the financial and emotional costs of getting it done. Whom you choose to work with isn't a decision to make lightly. A great way to get a feel for an architect--besides looking at examples of prior work, which is essential--is to start a conversation about the way he or she approaches the craft of architecture, and about the specifics of your project. There's usually no charge for this initial consultation.
Here are seven questions to use as a starting point. The answers will help you analyze each candidate's design sensibilities and personality, so you'll know who's right for your house, for your budget, and for you.
1. What do you see as the biggest challenges and attractions of this job?
Architects can have a beautiful portfolio and loads of great references, but that doesn't tell you what thhe'll do with your project. You want to hear them talk about their vision for your house--not just to learn how they think and work, but also to find out how well they understand what you want.

"You can hire any number of architects who'll come up with creative solutions to your job," says Pittsburgh architect Gerald Morosco, author of the book "How to Work With an Architect." "The differences are in how well the architect matches his design to your taste and your lifestyle." By making him talk about the job in the early stages, you'll get a sense of how good a listener he is: Did he really hear what you told him about your priorities?
2. Are you the person who will design my project?
Unless you're hiring a sole proprietor, there's a good chance that the person you meet with initially isn't the one who's actually going to handle the job. Often a partner signs up the clients and then hands them off to someone else to carry out the work. That's perfectly OK, as long as you understand it up front. But since good communication is crucial to a successful job, you need to meet the lead architect for your job before you hire the firm. You'll be interacting with this person on a daily basis, so it must be someone you get along with and like.
3. What project management services do you provide?
Architects do more than come up with the plans. They may also manage the project, checking the contractor's work as the job proceeds, answering questions, and making design adjustments. The architect may even help you decide which contractor to hire and certify the invoices, to ensure that your payouts never get ahead of the work and that you obtain the necessary lien waivers (http://www.houselogic.com/articles/what-do-contractor-puts-lien-on-house/) from all contractors before they're paid, so nobody can make a claim against your property later.
4. How do you charge?
Architects usually charge a percentage of the total project cost, anywhere from 5% to 20%, depending on the services being provided, the complexity of the job, and the renown of the architect. You'll want to know what percentage the architect will charge for your project, of course, but also when and how payments will be due.

Architects typically bill monthly, starting as soon as they begin work. But most of the upfront design work happens before you bring in a contractor and know the total project cost. In the interim, the architect may bill you by the hour or charge a retainer--a fixed monthly fee--with any necessary adjustments occurring once the real numbers are known. Each of these billing approaches can work well. What's important is utter clarity about the plan so you can manage your budget.
5. Would you say you have a "signature" style?
Most architects pride themselves on their adaptability, which allows them to tailor their style to fit each house and each client. But some have an overriding design sensibility that they bring to every project. It's not that all their jobs look the same, just that certain motifs show up again and again. For example, an architect might specialize in sleek modernism, a beach cottage feel, or reinterpretations of historic houses. Others may focus on environmentally friendly construction or universal design. By talking about the architect's signature style up front, you can decide whether it's the right fit for you.
6. Can you provide three-dimensional drawings?
Reading a standard two-dimensional plan isn't easy. Even if you can tell where the walls, windows, and doors are, you may not get an accurate feel for how things will look in the real world. Luckily, some of the software that architects now use to do their designs (few hand-draw anymore) can render three-dimensional images, says Corvallis, Ore., architect Lori Stephens. Not all architects have this software, however, so it's worth asking about.
7. Will you help us hire a contractor?
A good architect can help you evaluate prospective contractors' portfolios and bids, bringing a professional eye to the selection process and increasing the likelihood that the architect and contractor will have a good rapport. He may even recommend someone he has worked with before. That's a boon to the homeowner, since it means you won't have to do another big search to find the right contractor.

Even if you go with the architect's choice, you can still take advantage of competitive bids. Typically, the contractor will charge his standard markup (say, 10% to 20%), then he'll bid out the work to subcontractors--excavators, electricians, plumbers, etc.--and put together a quality crew with fair prices. That's the best of both worlds, because you get a contractor your architect likes, and you get the benefit of the competitive process to keep your costs under control.

A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He's currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.

Published: January 08, 2010

You have options for recourse if a contractor disappears or does shoddy work, but which action to take depends on the particulars of your situation.
 
No major home improvement happens without a few glitches. Cost overruns and completion delays are common--to say nothing of the fine layer of dust that takes months to fully eradicate. Occasionally, though, projects turn into unmitigated disasters. Roofs get torn off and left open to the elements; unskilled laborers slap together defective work; you pay hard-earned money for amenities that never get installed.
Maybe the contractor took on more work than he could handle or went belly-up in the middle of a job--or, worst-case scenario, maybe he's an out-and-out crook (http://www.houselogic.com/articles/top-5-contractor-scams-and-how-avoid-them/). The best way to protect yourself is to choose your contractor (http://www.houselogic.com/articles/five-essential-questions-ask-before-hiring-contractor/) carefully, vet him thoroughly, and have an ironclad contract (http://www.houselogic.com/articles/what-remodeling-contract-should-say/), says Tampa, Fla., attorney George Meyer, chair-elect of the American Bar Association's Forum on the Construction Industry. But when the worst happens, here's what you can do to defend yourself.
Fire the contractor
This is an obvious step when things go seriously wrong. But it's not easy. Your contractor could challenge the firing in court as a breach of contract. So you need to be prepared to show that he breached the agreement first.
To do that, you need to document instances when he didn't live up to the specifics of the contract, such as substituting inferior materials or failing to stick to the agreed-upon schedule. Then send a return-receipt letter to his business and home addresses stating that unless the problem is rectified within a specified number of days, he's in breach of his contract and you will be terminating it.
The catch: You can be sure the contractor won't be refunding any money you've already paid, so if you've written any checks up front, this tactic can be costly.
Request a dispute resolution hearing
Some construction contracts include a binding arbitration clause, which states that rather than going through the courts, disputes will be resolved by arbitration, a low-cost process in which each side presents its case to an independent authority, who makes a final decision.
But even if your contract has no such provision, you can request a similar hearing. The Better Business Bureau (http://www.bbb.org/), a national nonprofit association, offers mediation services for free or for a nominal fee of around $50, says Erin Dufner of the BBB's Austin, Texas, branch. Neither the homeowner nor the contractor needs to be a member of the organization.
The catch: There are two, actually. One is that you need to get the contractor to agree to mediation, which may be challenging with a truly shady guy. The other is that mediators and arbitrators look to the contract for guidance, so if you have a badly written one, there may not be much they can do to help you.
File a lawsuit
Hire a construction attorney to pursue your case, and you may be able to get more traction. These legal pros know the ins and outs of state statutes and may be able to work around weaknesses in the contract. Also, unlike BBB hearings, the contractor can't opt out of this process, assuming the guy hasn't disappeared altogether.
And even if he has, you may be able to collect money from a state contractor recovery fund consisting of contractor licensing fees, or from a bond the contractor posted at the start of your project. The latter is required for residential jobs in some states, Dufner says.
The catch: Attorneys charge $100 to $300 per hour for these cases, which can run into many, many hours, so unless you're dealing with a very big-ticket project, such as building an entire house, you'll likely spend more on the attorney than you're disputing with your contractor.
Take your case to small claims court
In these courts you represent yourself and pay just a few dollars in fees to bring a case. The exact rules depend on your local jurisdiction, but typically, a judge hears from both parties, asks questions, and then, Judge Judy-style, decides how the case will be resolved.
The catch: Small claims are just that. In most places, award limits are in the $3,000 to $7,500 range, with Kentucky coming in at the lowest, $1,500, and parts of Tennessee coming in at the highest, $25,000.
File complaints and bad reviews
There are a host of websites where you can post information about bad contractors, including angieslist.com (http://www.angieslist.com/), franklinreport.com (http://www.franklinreport.com/), and contractorsfromhell.com (http://www.contractorsfromhell.com/). You can also file a complaint with the state contractor licensing board, which collects these reports and, once a certain threshold is reached, makes the information available to the public.
These steps won't get your botched tile job fixed or bring back a disappeared contractor, but you may take some comfort in knowing that you've protected a fellow homeowner from the same fate.
The catch: A contractor could potentially sue you for libel over a bad review. State laws vary, but being 100% accurate in any claims you post gives you a strong defense in court, says Atlanta attorney Alan Begner, president of the First Amendment Lawyers Association, a trade group. Still, a big contractor with deep pockets could choose to bring a case, forcing you to spend tens of thousands in your own defense.

To decide which of these options makes the most sense for your particular circumstances, you may want to consult a construction attorney. Your family attorney can refer you to one of these specialists, or you can find one through the American Bar Association (http://www.abanet.org/lawyerlocator/searchlawyer.html). Explain that you're not necessarily looking to take your case to trial, just to get an expert review of the situation and your contract and advice on what to do. You'll pay between $500 and $1,000 for a consultation, but it could save you far more money in the long run.

A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He's currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.

Published: January 15, 2010

Decide whether a bathroom addition is right for you by evaluating the project cost versus the potential increase in home value.
 
Generally, if you can afford the average $40,000 price tag, a bathroom addition is a good investment. A new bathroom can recoup almost 60% of your initial investment at resale, according to Remodeling Magazine's Cost vs. Value (http://www.remodeling.hw.net/2009/costvsvalue/national.aspx) report, not to mention adding comfort, style, and convenience to your life.
But there are some important considerations you should make before you take the plunge, especially if you know you'll be selling the house in the near future.
Adding home value
The good news is that buyers love bathrooms. "You can almost never go wrong adding a bathroom," says Tucson builder Greg Miedema, chairman of the National Association of Home Builders (http://www.nahb.org/reference_list.aspx?sectionID=715) Remodelers. "We never hear someone say, 'I have way too much bathroom space-could you turn one of mine into a closet?'"

But if you're looking to recoup the cost through resale of the home, or improve your prospects of selling, do your homework carefully, says certified appraiser Melanie J. McLane of Jersey Shore, Pa. "Say you have an older row house that sells for $70,000 on a good day," she says. "If you add a $30,000 bath to that house, you're not going to have a $100,000 house. You're going to have a $70,000 house with a really expensive bathroom."
A general rule of thumb is that you should only undertake a major remodeling project if you plan to stay in your home at least five years. Each situation depends on the local market, McLane says.
Here's how to evaluate your potential return:
Is your house balanced?
Buyers tend to prefer that the number of bathrooms roughly equal the number of bedrooms, according to the NAHB. Additions that bring bathrooms in line with bedrooms will likely return a bigger portion of their investment.

The most valuable bathroom addition you can make is when you start with only one bath in the house-a second bath makes a good impression on buyers and can be the difference between selling a house and having it remain on the market.

Another important area of balance is showers vs. tubs. For maximum resale potential, you need one of each in your house--young children need a tub for bath time, and aging buyers (including the massive Baby Boomers market) often prefer a shower when stepping in and out of a slippery tub becomes less appealing. An addition that gives you the shower or tub you're lacking is a smart choice.
Full vs. half baths
Both Miedema and McLane suggest adding a full bath (or a ¾ bath, which has a shower stall) rather than a half. "If I'm going to go to the trouble and expense of getting carpenters and plumbers in there, I'm adding at least a shower stall," McLane says.

NAHB data suggest that when all other factors are equal, an additional half bath increases a home's value by 10.5%, but an additional full bath increases the value by 20%. That means that adding a shower or tub could cost just a thousand or two more while doubling your return.
Sizing up your neighborhood
Because national percentages on return of investment can't capture all the variables that affect your home's value, it's best to call a REALTOR® or appraiser to see if your neighborhood can support an increase in value. "If your house is already one of the nicest in your neighborhood, think long and hard before you add a $40,000 bath," McLane says. "You may be facing diminishing returns."

It's also critical to find out what buyer expectations are for a home of your size in your particular location if you know you're planning to sell within a few years. Features you think will be attractive to buyers may or may not make a real difference-only a REALTOR® or appraiser can tell you whether buyers looking in your neighborhood are appreciably interested in, say, a jetted tub in the master bathroom. Consider expensive upgrades only if they're important to you personally.
Weighing intangibles
If your unhappy family is standing in line to share a bathroom, or if you've always dreamed of relaxing in a jetted tub, you may not care about recouping the full cost of an addition. "Only the homeowner can decide what the personal satisfaction is worth," McLane says.
Understanding the implications for your home's value is important and can keep you from making costly mistakes, but you can't put a price tag on family harmony.

Karin Beuerlein has covered home improvement and green living topics extensively for HGTV.com, FineLiving.com, and FrontDoor.com. In more than a decade of freelancing, she's also written for dozens of national and regional publications, including Better Homes & Gardens, The History Channel Magazine, Eating Well, and Chicago Tribune. She has two full baths and doesn't use her jetted tub as much as she should.

Earthquake Strengthening Your Foundation

Published: January 15, 2010

Homes constructed more than two decades ago may need earthquake strengthening upgrades to their foundations. Here's how to resist seismic forces.
 
If you live in earthquake country (http://earthquake.usgs.gov/earthquakes/states/us_density.php), which includes at least part of most states, a few relatively simple earthquake strengthening upgrades may be all you need to keep your house from sliding off its foundation in a quake. You can tackle the work yourself for as little as $500, or hire a contractor for about $2,000. Either way, you stand to avoid repairs that might cost tens of thousands of dollars-if repairs are even possible.
That's because damage from an earthquake can be so extensive--in some cases, the only remedy is to completely rebuild. If you don't have earthquake insurance, the financial consequences can be dire. Even if you do carry earthquake insurance, simple eathquake strengthening measures could still save you tens of thousands of dollars, since earthquake insurance usually carries a hefty deductible.

You also gain peace of mind, and it may make your house easier to sell. At least one state (California) requires sellers to fill out a checklist specifying whether earthquake strengthening measures have been installed. If you buy earthquake insurance, which can range from a couple hundred dollars to several thousand dollars a year, retrofitting may save you 5% each year on premiums.
Check with your local building department
Houses built to today's building codes should be strong enough to keep people safe during an earthquake. But older houses, even those built a few decades ago, might need strengthening. Your local building department can tell you what's required in your area, and whether you need design help from a structural engineer.

If you need just simple upgrades, the department might have free plans you can use. Whether you do the work yourself or hire a contractor, get a permit. If you're planning to insulate or finish the basement, tackle earthquake strengthening first before you close off access to walls.
Poured perimeter foundations
If your house sits on a wall of poured concrete, with perhaps a few posts in the center under beams, there may be nothing but a few nails and gravity to hold the house in place.

To check whether your house needs earthquake strengthening, go into the crawl space or basement and look for thick bolts along the top of the sill plate, and for steel anchor plates (http://www.strongtie.com/products/connectors/UFP.asp) that tie an edge of the sill plate to the side of the foundation. If you find neither, they are easy to install.

If you have enough room to use an electric hammer drill, drill straight down through the sill plate and 4 inches into the concrete-you can rent a hammer drill for about $20 per day from a tool rental center. You may need one ½-inch-diameter wedge anchor or bolt with epoxy each 32 inches to 6 feet, depending on the recommendations of your local building department.

On top of the sill plate, add hefty square washers (often called bearing plates (http://www.strongtie.com/products/connectors/bp-lbp.asp) ) and nuts. Avoid standard round washers because they may fold and split the sill plate during a quake. If there isn't enough room to drill straight down, use ties that fasten into the foundation from the side. You'll find them at a local building-supply company.

If the first floor sits several feet higher than the perimeter foundation, the short "cripple (http://www.javbuilder.com/retrofitting)" walls on top of the sill plate may need strengthening. To check, look between the studs-if you see diagonal boards or plywood on the outside of the studs, the cripple wall will be braced properly.

Add bracing by nailing plywood to the interior side of each wall. The bracing blocks access to the sill plate, so be sure your house is bolted down first. Your local building department can tell you the specifics about the type of plywood and the nailing pattern.
Unreinforced masonry foundations
If your house sits on a perimeter foundation made with concrete blocks that are completely filled with rebar and concrete, retrofit it as if the foundation was made of solid poured concrete (above). But if the blocks are hollow or if the foundation is unreinforced brick or stone, you'll need a structural engineer's advice.

You might learn that your foundation is sturdy enough and you just need a creative way to fasten down your house. Or, you might learn that the foundation is at risk of collapsing in a quake. Expect to pay $500-$700 for an evaluation and recommendation from a structural engineer.

If your foundation consists of more than three rows of concrete blocks and is in good shape, you might be able to fasten the sill plate to the foundation by drilling slightly oversize holes into hollow parts of the blocks and then inserting mesh sleeves, epoxy, and threaded bolts. Tightening the bolts causes the epoxy to squeeze through the mesh and mushroom out inside the hollow cavity, holding the bolts much like drywall anchors work to hold screws in walls.

This relatively new option costs as little as $5,000 for a one- or two-story house with a footprint of 1,000 square feet. That's about half of what it would cost for the more traditional method of cutting into the blocks and installing rods that tie the sill plate to the foundation footing.

If the foundation consists of only a couple of courses of blocks, or if the walls aren't in good shape or are made of brick or stone, you might need a new foundation. A new foundation costs about $40,000-more for a house with a basement.

Short block walls are more vulnerable to collapsing in an earthquake than walls of four or more courses because short walls have fewer mortar joints. Fewer joints means more stress concentrated in each joint. In a taller wall, there are more joints to share the seismic forces. "I know it's counterintuitive," says Leif Jackson, owner of Sound Seismic (http://www.soundseismic.com/), a retrofit contractor in Seattle, "but that's what the engineers say."
Slab foundations
For a house that rests directly on a concrete slab, metal straps or bolts should tie the sill plate to the concrete. If you have an unfinished garage, you can check sill plates there and assume the house is built the same way. If the garage walls are closed in, check by removing a section of drywall or siding in an unobtrusive spot.

Those who are not inclined to open up a wall can take comfort in the fact that a slab house probably won't collapse since it doesn't have far to fall. Of course, if you are removing siding or drywall for another purpose, that's the perfect time to check for straps or bolts and add them if they're missing.
Post-and-pier foundations
Some houses are supported by upright posts that rest on concrete blocks or piers. During an earthquake, these support posts are especially vulnerable to back-and-forth seismic movement and may collapse. Repairing collapsed posts starts around $20,000, if the house can be salvaged.

The preventative solution may be as easy as bracing the posts at a cost of about $1,000, or as expensive as adding a new foundation for approximately $25,000. Between these extremes, you may be able to pour short L-shape concrete foundations around each corner and securely attach them to the floor framing. Seek the advice of a structural engineer.

Jeanne Huber is a writer who specializes in home-repair topics and has dealt with earthquake strengthening of her own older houses since she saw damage caused by the Loma Prieta earthquake in California in 1989. After hiring contractors to bolt down two houses over the years, she did it herself on the house where she lives now.

Budgeting for a Remodel

Published: September 30, 2009

You're ready to remodel but you want to make sure you get the best contractor for the job. Here's what to ask the candidates before you decide.
 
For all of the excitement of choosing plumbing fixtures, cabinets, and tiles for a remodeling project, the most important decision you make won't involve color swatches or glossy brochures. It's the contractor you pick that makes or breaks the job. That choice will determine the quality of the craftsmanship, the timeliness of the work, and the amount of emotional and financial stress the process puts on you. To make sure you're getting the best contractor for the job, here are five questions to ask the candidates.
1. Would you please itemize your bid?
Many contractors prefer to give you a single, bottom-line price for your project, but this puts you in the dark about what they're charging for each aspect of the job. For example, let's say the original plan calls for beadboard wainscot in your bathroom, but you decide not to install it after all. How much should you be credited for eliminating that work? With a single bottom-line price, you have no way to know.
On the other hand, if you get an itemized bid, it'll show the costs for all of the various elements of the job-demolition, framing, plumbing, electrical, tile, fixtures, and so forth. That makes it easier to compare different contractors' prices and see where the discrepancies are. If you need to cut the project costs, you can easily assess your options. Plus, an itemized bid becomes valuable documentation about the exact scope of the project, which may eliminate disputes later.
The contractor shouldn't give you a hard time about itemizing his bid. He has to figure out his total price line by line anyway, so you're not asking him to do more work, only to share the details. If he resists, it means he wants to withhold important information about his bid-a red flag for sure.
2. Is your bid an estimate or a fixed price?
Homeowners generally assume that the bid they're seeing is a fixed price, but some contractors treat their proposals as estimates, meaning bills could wind up being higher in the end. If he calls it an estimate, request a fixed price bid instead. If he says he can't offer a fixed price because there are too many unknowns about the job, then eliminate the unknowns.
"Have him open up a wall to check the structure he's unsure about or go back to your architect and solidify the design plans," says Tampa, Fla., attorney George Meyer, who is chair-elect of the American Bar Association's Forum on the Construction Industry. If you simply cannot resolve the unknowns he's concerned about, have the project specs describe what he expects to do-and if he needs to do additional work later, you can do a change order (http://www.houselogic.com/articles/what-remodeling-contract-should-say/) (a written mini-bid for new work).
3. How long have you been doing business in this town?
A contractor who's been plying his trade locally for 5 or 10 years has an established network of subcontractors and suppliers in the area and a local reputation to uphold. That makes him a safer bet than a contractor who's either new to the business or new to the area-or who's planning to commute to your job from 50 miles away.
You want to see a nearby address (not a PO box) on his business card-and should ask him to include one or two of his earliest clients on your list of references. This will help you verify that he hasn't just recently hung his shingle-and will give you perspective from a homeowner who has lived with the contractor's work for years. After all, the test of a quality job, whether it's a bluestone patio or a family room addition, is how well it stands the test of time.
4. Who are your main suppliers?
You've found a few potential contractors, you've talked to the happy former clients on each of their reference lists, now it's time for one additional bit of homework: talking to their primary suppliers. There's no better reference for a tile setter, for example, than his preferred tile shop; for a general contractor than his favorite lumberyard or home center pro desk; for a plumber than the kitchen and bath showroom where he's on a first name basis.
The proprietors of these shops know a contractor's professional reputation, whether he has left a trail of unhappy customers in his wake, if he's reliable about paying his bills-and whether he's someone you'll want to hire. The contractor should have absolutely no qualms about telling you where he gets his materials, as long as he's an upstanding customer.
5. I'd like to meet the job foreman-can you take me to a project he's running?
Many contractors don't actually swing hammers. They spend their days bidding new work and managing their various jobs and workers. In some cases, the contractor you hire may not visit the jobsite every day-or may not even show himself again after you've signed the contract. So the job foreman-the one who's working on your project every day-is actually the most important member of your team.
Meeting him in person and seeing a job that he's running should give you a feel for whether he's someone you want managing your project. Plus, it gives the general contractor an incentive to assign you one of his better crews since you're more likely to hire him if you see his A Team. If the contractor says he'll be running the job himself, ask whether he'll be there every day. Again, he'll want to give you a positive response-something you can hold him to later on.
It's not only the answers to these questions that will help you judge potential contractors-it's the way they answer them. Were they easy to talk to and forthcoming with details or did they hem and haw and make you ask more than once? Difficulty communicating now means difficulty communicating on the job later. But clear, timely and thoughtful responses-combined with terrific references, great completed work that you've seen, and a smart take on your project-may mean you've found the right pro for your job.
A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He's currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.

Should You Move or Improve?

Published: August 28, 2009

Whether to move or improve is a harder question to answer than it was a few years ago, but a few cost-benefit calculations can help you make the right decision.
 
What do you do when your family outgrows your house, or when the quirks you once found charming about the place just aren't livable anymore? A few years ago, the answers were easy. With house values climbing an average of 50% from 2001 to 2005 and lenders handing out big checks to nearly anyone who asked, you could quickly unload a too-small house and use the profits to help pay for a larger one. Or you could borrow against that growing equity to fund a big home-improvement project, with the full expectation of making your investment back someday when you sold. Flash forward a few years, and the rules of real estate have changed. In this marketplace, with home equity shrinking and banks reluctant to lend, is it smarter to move or improve? Here's some advice to help you decide.
Moving has gotten harder
With median housing prices down 25% since their peak in 2006, some 15 million homeowners-almost one in four-owe more on their mortgages than they could get from a buyer, according to Celia Chen, senior director of Moody's Economy.com (http://www.economy.com/). And even folks who bought before the big run-up and can afford to sell at today's lower prices still face steep odds trying to unload their homes with the glut of inventory on the market (36% more lawns wear For Sale signs now than a few years ago). There was an uptick in units sold in early 2009, leading some economists to predict that the market has begun to rebound, but selling a house is likely going to remain difficult for a while.
Still, there can be an advantage to trading up now: If your house has curb appeal and a good kitchen-and you price it right-offers will come. You may not turn a big profit, but once you sell, you become a buyer in this buyer's market. That means you'll find what you're looking for and pay less for it than a few years ago.
To analyze your trade-up options, check local listings to ballpark the price you could realistically get for your home and what you'd have to pay for the next place. Then contact a bank to see if, based on those figures and your financial situation, you're likely to qualify for the new mortgage. Or do your research online: Investigate home values at online real estate sites and how much of a mortgage you'd qualify for at bankrate.com (http://www.bankrate.com/).
Improving has gotten easier
The economic slump has actually made renovating the home you already own a bit easier. The construction-industry slowdown has lowered the cost of some building materials: Plywood is down 46%, for example, framing lumber is down 42%, and drywall is down 25%, according to Bernard Markstein, senior economist for the National Association of Home Builders (http://www.nahb.org/). Many contractors are also charging less for labor, to compete for the smaller pool of available jobs. What's more, you won't have to wait months for a contractor to show up-chances are he'll be able to start in a matter of days.
Of course, you'll still need to come up with cash to pay for the project. And the news is good there, too: As a general rule, improving costs less than trading up. Figure somewhere between $100 and $200 per square foot for new construction or a major remodel, depending on the scope of the project and labor costs in your area. (For help with budgeting and financing, see"Budgeting for a Remodel" (http://www.houselogic.com/articles/budgeting-for-remodel/) ) A two-story addition with a family room, bedroom, and bathroom costs an average of $156,309, according to Remodeling Magazine's 2009-10 Cost vs. Value Report. (http://www.remodeling.hw.net/2008/costvsvalue/national.aspx)
 Now more than ever, though, you need to make sure that you invest your money wisely. In other words, will your $75,000 kitchen remodel increase your home value by $75,000-or by anything close? For guidelines, check out the Cost vs. Value Report, which gives national average cost and payback figures for 30 popular remodeling projects.
To assess what's right for your particular house, let your neighborhood be your guide. If there's any chance that you'll move within the next 10 years (and in this economy, who can be sure?) keep your improvements in line with those of other houses on your block, or you risk losing the money when you sell.
The most important considerations haven't changed
Your house isn't just your largest investment, of course, it's also the place where your family lives. Financial considerations aside, the question of whether to move or improve should be decided by the things you cannot change about your current home: the school district, the amount of traffic on your street, the size and layout of your yard, your commute, the ease of access to markets and malls, and your neighborhood quality of life. If you love the spot, improving makes sense. But if a different location would be an improvement in its own right, then trading up could be the way to go.
A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He's currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.

What Your Remodeling Contract Should Say

Published: September 30, 2009

Review your remodeling contract carefully and adjust it to make sure it protects you in terms of payments, work schedules, and project specifications.
 
Even if you never intend to pick up a hammer for your remodeling project, there's one tool that's absolutely essential-a solid contract. But just having one often isn't enough. That's because the document a contractor gives you is designed to protect him. It's up to you to add in some basic protections for yourself. Here's what you need to know to make sure the remodeling contract you sign includes solid legal protection for you and your home.
Hiring a lawyer to review and make changes to a contract is a safe bet, especially since each state has its own construction-contract statutes. But not many homeowners are willing to shell out $500 for an attorney review, plus $1,000 to $1,500 additional fees to make wholesale revisions to a flawed contract. However, you can hand-write changes and additions in plain English and make sure both you and the contractor initial each change to the document, says Tampa, Fla., attorney George Meyer, who is chair-elect of the American Bar Association's Forum on the Construction Industry. Here's what you want to add (and subtract).
Project specs
Start by reviewing your contract, a process that should take several hours. The most important element of a contract is a thorough and complete description of the project, and the materials and the products that will be used. "It should say that the contractor will secure all necessary permits and approvals as well as what walls are being moved where, what type of countertops are going in, what type of sink, what type of faucet, and so forth," says Meyer. "You can't rely on everyone's memory because if there's a problem later, people may remember different things." The contract needn't contain these specs on its pages, it can simply refer to the contractor's attached itemized bid. Avoid allowances (http://www.houselogic.com/articles/getting-best-work-contractor/), which are pools of money set aside for work to be determined later, and which often lead to cost overruns.
Payment schedule
The contract (http://www.houselogic.com/articles/getting-best-work-contractor/) should also state the total price for the job, and that it's a fixed price-not an estimate. It should provide a schedule of how the payments will be made by linking them to milestones in the work-such as when the foundation, rough plumbing, and electricity will be completed-so you're paying for work only after it's done. "You should always have enough money left to hire someone else to finish the work if need be," says Meyer. In general, the first payment should be no more than 10% of the total job and the final payment should be at least a few thousand dollars to ensure that it's a big enough incentive to get the contractor back for the final niggling details. If you're unsure whether the payment schedule is proportional to the milestones your contractor suggests, ask a friend who's familiar with construction process or consult a construction attorney.
Start and end dates
A contractor's boilerplate contract rarely includes dates for when he will begin work and when he will complete the job, so make sure those details are included. It's not that he'll be penalized if it runs late, only that if you ever have a major problem and need to sue him-or defend yourself from a suit he brings-showing that the contractor is, say, two months behind schedule will help you make your case. The dates needn't be too exacting. If he says it's a six to eight week job, eight or even nine weeks is fine for the contract, says Meyer.
Statement about change orders
Make sure the contract contains a line stating that any changes that will affect the cost of the job must be priced in writing and countersigned by both the contractor and homeowner before that work commences. That ensures that an offhand discussion about a possible change to the project won't result in a huge unforeseen additional cost (http://www.houselogic.com/articles/getting-best-work-contractor/). It also helps you, as the homeowner, keep track of exactly how much you've added to the bottom line, so you can avoid the very common urge to keep expanding the job.
Binding arbitration
Many contractors include a line that says that rather than going through the courts, disputes will be resolved by an arbitrator. Some legal experts feel that this is a quicker and lower-cost solution to problems, so a binding arbitration clause isn't necessarily a problem. What can be trouble is if the contract requires a specific arbitrator. "There are some big, national, well-respected arbitrators, like the American Arbitration Association (http://www.adr.org/)," says Meyer. "And there are other questionable arbitrators that always side with the contractor. If a particular arbitrator is specified, I'd do some internet research about the agency to make sure it's legit."
Warranty
Having the contractor's warranty in the contract seems like a good thing, right? Well including it is often actually a technique for limiting how much liability the contractor has. "It's usually loaded up with exclusions and time limits," says Meyer, "and you're actually better off with no mention of warranty at all because then the only limits on his warranty are what's in the state statutes." In other words, keeping the contractor's warranty language in the contract will likely mean you're agreeing to less than what state law provides. For example, state law may specify a longer warranty term than what the contractor's warranty offers. So, unless you're having a lawyer review the contract, strike the warranty clause.
Technicalities
There are numerous state-by-state requirements for construction contracts. He may have to include his contractor's license number, for example, and he may have to include a clause saying you have the right to rescind the contract within a certain time period after signing. And unless you and the contractor sign the document, it doesn't matter what it says-it's not a valid contract.
A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He's currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.

When It Pays to Do It Yourself

September 01, 2009

Doing home-improvement jobs yourself can be a smart way to save money, but choose the right DIY projects or you'll end up paying dearly.
 
Why pay someone big bucks to do something you can just as easily do yourself? That's the thinking that has gotten more Americans than ever swinging their own hammers. In a recent Time magazine poll, nearly a quarter of people said they were taking on more home-improvement projects themselves-understandably so, when you consider that it usually means a 50% to 75% discount, since all you pay for is materials.
But sometimes doing it yourself costs more than it saves, like when you decide to replace the toilet, end up flooding the basement, and have to pay a pro to fix your mistakes. Or, worse, if you become one of the more than 100,000 people injured each year doing home-improvement jobs. Here are some guidelines for deciding when DIY can save you money and when it could cost you.
Stick to routine maintenance for savings and safety
Seasonal home maintenance (http://www.houselogic.com/categories/maintain-structures-systems/) is ideal work for the DIY weekend warrior, since you can plan tasks in advance and get to them when your schedule allows. Because these are repeat projects, your savings will add up to big bucks over the years. Just by mowing your own lawn, for example, you can save $55 to $65 a week for a half-acre lawn during the growing season. The bigger the lot, the bigger the savings: with two acres, you'll pocket around $150 per week.
When It Pays: Look for maintenance jobs that are relatively easy and need to be done regularly, so you can hone your skills over time. In addition to mowing, other good ones are snow removal, pruning shrubs, washing windows, sealing the deck, painting fences, fertilizing the lawn, and replacing air conditioner filters.
When It Doesn't: Unless you have skill and experience on your side, stay off of any ladder taller than six feet; according to the U.S. Consumer Product Safety Commission (http://www.cpsc.gov/), more than 164,000 people end up in emergency rooms every year because of ladder injuries. The same goes for operating power saws or attempting any major electrical work-it's simply too risky if you don't have the experience.
Act as your own GC on small jobs
 If you're more comfortable operating an iPhone than a circular saw, you may be able to act as your own general contractor on a home-improvement project and hire the carpenters, plumbers, and other tradesmen yourself. You'll save 10% to 20% of the job cost, which is the contractor's typical fee.
When it Pays: If it's a small job that requires only two or three different tradesmen, and you have good existing relationships with top-quality professionals in those fields, consider DIY contracting.
When It Doesn't: Unless you have an established network of contacts who will show up as promised, the time to spend on oversight, enough construction experience to spot potential problems, and the skill to negotiate disputes between the various subcontractors, trying to manage your own project can quickly send the schedule and budget off the rails.
Pitch in with sweat equity on big jobs
Contributing your own labor on a big job being handled by a professional crew can cut hundreds or even thousands of dollars off the contractor's bill. Tear the cabinets and appliances out of your old kitchen before the contractor gets started, say, and you might knock $800 off the cost of your remodel, says Dean Bennett, a design/build contractor in Castle Rock, Colorado.
When it Pays: Grunt work-jobs that are labor intensive but require relatively little skill-makes the best homeowner contribution. Offer to do minor interior demolition like removing cabinets and pulling up old flooring, daily jobsite cleanup, product assembly, and simple landscaping like planting foundation shrubs and grass seed around your new addition.
When It Doesn't: If you get in the crew's way, you may slow them down far more than you help. Make your contributions when the workers aren't around, such as in the morning before they arrive, or on nights and weekends after they've left.
Put on some of the finishing touches
Unlike the early phases of a construction job, which require skilled labor to frame walls, install plumbing pipes, and run wiring, many of the finishing touches on a project are comparatively simple and DIY-friendly. If you do the painting yourself for a new basement rec room, for instance, you can easily save $1,800, Bennett says.
When it Pays: If you have the skill-or a patient temperament and an experienced friend to teach you-finish work like setting tile, laying flooring, painting walls, and installing trim are all good DIY jobs.
When It Doesn't: The downside to attempting your own finish work is that the results are very visible. Hammer dents in woodwork, for example, or sander ruts in your hardwood floors may cause you aggravation every time you see them. So unless you have a sure eye and a steady hand, it may not pay to embark on these tasks.
A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He's currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.