Congratulations! You have arrived at the decision to begin preparing for success about your next home building up or remodeling project. In reading through some of our helpful remodeling tips you should find yourself better saved and better positioned to deal with many by the issues that arise on the home remodeling process. As with starting any new project I’ve found that it is always better to just…

START SMART:

Make sure your architectural plan is right!

You had better review and understand completely with your Architect what your established goals are and have at least one conversation about the concept of building Green. Get advice on what environmental considerations might be right for you and your project.

Once your program requirements are established and your creative ideas are developed and put to paper, your final architectural documents are prepared. These plans and specifications should have all the measurements needed to construct your new home or addition. Information on the plan should include all specific State & Local code demands that apply to your job.

There should be a list of design specifications noting quality standards for your project. Another plans as may be needed would include both electrical and structural drawings. If you start a large renovation project without a complete set of these detailed plans, you will see costly delays and unplanned for charges to your budget.

THE TOWN:

Each Town varies with their own specific requirements. If you are considering an addition or renovation, make sure you are within your own Town requirements before you spend time developing plans that might not be feasible. You need to know before hand if your planned addition might need some type of variance prior to approval. Town regulations for front, side & rear yard setbacks as well as wetlands requirements and certain zoning ordinances are simply ways in which your Town can protect and maintain quality in your neighborhood environment. Make sure that you become informed about those restrictions before you start the design process. It may be costly otherwise.

PREPARE:

Get a reasonable preconstruction budget, scope of work and schedule put together. When your list of requirements is defined you will be more in control of what you are trying to build or accomplish. Don’t leave these important details up to the contractors bidding on your job because each one (qualified or not), will interpret your plans differently. Ideally you should have a clear and defined scope of work prepared before you bid out your project, or you won’t get exactly what you want when you want it. Do this early and be knowledgeable of the specific goals you want to achieve.

PROTECT YOURSELF:

With the housing market off and the construction market a bit uncertain, there is no better time then NOW to protect yourself from unqualified or unlicensed contractors.

Make sure that your contractor has General Liability and Workers Compensation Insurance and that you are named as additionally insured on their policy. Obtain a copy in case of an accident. Also make sure that an Indemnification contract agreement is signed additionally holding you harmless in case of an injury. Be sure that each trade-contractor on your project has this same protective coverage in place so that you are not held liable should an accident take place on your property.

MAKE YOUR SELECTIONS:

You’re going to need to get working on selections for tiles, fixtures, accessories, flooring, cabinetry, lighting, etc. as soon as possible. We are fortunate that there are several great design showrooms in our area with knowledgeable staff ready to assist you with the latest in home fashion and design. Help yourself by being prepared;

Bring room sizes, tile or floor material quantities and any sketch design layouts with you. This should make your initial visit more productive. Also, try to have an established budget for each item in your project. This spending plan will help you focus on specific areas where you need control. (Maybe you don’t need to spend $1,300.00 for a shower head in the guest bath?)

Remember, the final product is only as good as the materials selected. Get help putting the design pieces and selections together so that the look is just what you’re dreaming of when it all comes together. Also remember that the contractor or construction manager’s job is to facilitate the installation of what you select, so select carefully and select early. Non-stocked products have obviously longer lead times for delivery then stocked items. Selections made early should be part of the bid specification package which will allow the project to be bid correctly. Early selections should also allow for material ordering to be done in a timely manner and according to schedule. It can be a lot of work on your own so if you can, get some help.

KNOW THE SCHEDULE, JOB CONDITIONS & KEEP IT CLEAN:

Make sure you have a construction schedule that works with your time frame and one that your contractor can adhere to. Your schedule should be detailed trade by trade with necessary dates required for material selections and procurements identified. Scheduling should be part of the General Conditions in your contract including hours of operation. Certain Towns and Villages have restrictions on when work can start and cease on Holidays and weekends. If there is a question, you can contact your local police department for specifics.

Also with regard to time, you may or may not want your contractor in your house past normal business hours finishing work. To avoid any unpleasant surprises it is important to define his/her hours of operation up front. General Conditions should also include simple but important items like cleaning and general protection of your home. Make sure you have in writing who will do what and when. You won’t know how really important this is until you start living with dust and debris throughout your house! Make sure your contractor or Construction Manager has planned to protect your existing home and furnishings prior to the start of any work.

KNOW YOUR CONTRACT:

- Make sure that your approved contract references complete plans and specifications including the Architects name, plan dates and plan page numbers.

- Make sure that there is referenced and attached a detailed scope of work that includes all specific notes, qualifications and exclusions or conditions to the contract. If there is an alternate add or deduct price, make sure that you clearly understand the details.

- Make sure that payment terms and conditions are clear and that you are comfortable with those terms. Make it your plan to only release initial down-payment funds, if any, predicated on your receipt of all insurance certificate’s and agreements. This insurance must be in place prior to the start of work or the work does not start, period. Do not let any contractor on your property without full and complete insurance.

- Remember that by consumer protection laws, you have a right of recession on your contract which allows you three days to cancel out of a signed home improvement contract for any reason. Don’t feel pressured, if something does not feel right, it probably isn’t! The point is to feel comfortable and think clearly about what you expect from your contractor and your working relationship and plan accordingly.

- There may be an infinite number of clauses you could enter into your own contract that would further help you control the contractor but remember, yours is a two way agreement and he/she is providing a valuable service for you, so be fair. All that being said, it is always advised to have your attorney review any contract you might consider signing especially if it is of significant value pertaining to your home.

- Your payment terms might want to include that final payment for the job will be released upon completion of the final project including all punch-list items. Each and every payment should be accompanied by a signed Waiver of Lien/ release on your property. These general terms could prove helpful with both the contractor and the homeowner understanding there respective obligations and concerns when it comes time for final payment.

FINISH SMART:

Remember to make sure that when the project is nearing completion:

- All warranties are packaged and presented to you for easy reference.

- If your utility’s were altered or worked on, (i.e. Plumbing, Electrical, HVAC) etc., make sure that those lines or plumbing valves are tagged.

- If the electrical panel was worked on make sure the contractor labeled it.

- And if your heating and cooling system was touched, make sure that you are comfortable with operational and maintenance directions.

- If major renovation work was performed then you should discuss with your contractor the need to check and clean all HVAC filters prior to completion of work. Sometimes these filters can get clogged during construction with dust and debris.

- Separate issues might arise at the end of your project if telecommunication is involved. Make sure you are clear on who will be contacting the phone or cable company for service as well as who will be paying for the hookup.

Finally as part of all these closeout procedures, don’t forget to generate that punch-list and give it to your contractor as soon as possible while they still have personnel on site.

YOU DON’T ALWAYS HAVE TO SAY GOODBYE…

Often after successfully completing a special project, you and your contractor or Construction Manager might not want to say goodbye. If he/she has performed all of the above work to your satisfaction and completed your punch-list responsively, then think of offering them your complete and honest recommendation. The construction business can be thankless. If your contractor or alternatively, your Construction Manager, excelled on your project show your appreciation by recommending them often. They will appreciate your gratitude and so will you if at some point six months down the road you need them back for an adjustment or miscellaneous repair.

Sad, but true, many people hoping to purchase their first home are unable to do so because they fail to meet the qualifications required by banks. Nevertheless, there are some alternatives to a conventional bank mortgage. There are private lenders and investors who are willing to offer non-conventional financing to those who are not ideal candidates for bank loans.

This financing is known as creative financing in which a home loan includes various options. Anyone can buy a home with the help of any one of these methods regardless of income or credit. In some instances, a homebuyer could even save money with these methods.

Let me discuss further the kinds of creative financing:

1. Property Assumption is a kind of creative financing that requires you to find a home with assumable mortgage. This could be quite tricky. However, once you find an assumable property, the benefits are endless. If you are interested in assuming a home, you should work with a real estate investor since they are in the business of purchasing homes for less and selling for a profit.

2. Another type of creative financing is the no money down payment. One of the main reasons why many are unable to buy a home is because they do not have enough money for down payment. Fortunately, there are first time home buying and down payment assistance programs that could help. Contact local lenders and inquire about this home mortgage. Usually, you will be required to attend a home buying workshop before you qualify. However, take time to consider this alternative since this could entail a higher interest rate.

3. Seller financing is a perfect alternative for those who do not qualify for a traditional financing. The seller acts as the lender for the property. The new owner, instead of making payments to the bank will pay directly to the seller. Both buyer and seller will agree on financing terms that are shorter than a traditional loan. At terms’ end, the buyer will most likely owe a balloon payment for the home. This kind of financing is good for individuals who are rebuilding their credit. Once their credit is acceptable, the buyer will likely finance a balloon payment with a conventional lender. The money they get will pay-off the seller and start making regular payments to the lender.

4. A lease option is a contractual agreement between the buyer and the seller that allows the buyer to rent out the property as he or she saves money to make a down payment or improving their credit score. He or she locks into a future purchase price and agrees to purchase the property within a considerable amount of time. Buyer and seller should get a lease option agreement and establish the terms such as future purchase price, maximum length of agreement and the monthly rental price. Some sellers may include a lease option agreement to impose penalty if a buyer decides not to purchase the home at the end of the term.

5. Wrap Around Mortgage. The seller in this type of mortgage offers you a second mortgage at a better rate of interest than what you can get from a lender. You make payments to the seller who uses a percentage of the money to continue making the monthly dues on the first mortgage.

6. Another creative way of financing is through a fixer upper option. This is the best option if you cannot afford for your dream home yet, but have enough to use on a property as your stepping-stone. For example, you can purchase a fixer upper property or one that desperately needs renovation and repair. Through proper renovation, you can remedy the poor condition of the home, have it rented and use the rent money to start saving for the purchase of your dream house.

7. Another option is the joint tenancy, which allows you to save a considerable amount for home purchase. This is more common to married couples who prefer to share the mortgage and the title for the property.

Do not be afraid to take the risks in home buying, your dream home is just out there. Use the best technique and have fun!

Before you run into conclusions, let me tell you that you will not have to compromise on the any aspect of quality just because you are going to design and build your house on a budget. Well, now that I have got your interest, let me tell you how you can go about doing it.

Choose the right plot

Don’t be hasty and buy plots that come under budget building lots. Though they are advertised using the word “budget”, they are not necessarily cost effective. Most often than not, there lots are in places that are filled with rocks and trees. So, you may actually end up buying the land at a reasonable price, but you will have to spend a large amount on getting the rocks crushed or the trees cleared. Instead, it is recommended that you opt for building lots that have access to water, gas and electric lines.

Get estimates

If you are looking to avail professional help in order to design and build your house, then, don’t just approach one person or organization. Get in touch with as many as possible and get them to give you a rough estimate of the total cost. Though it might be tempting to give away the construction contract completely to one company, think twice before you do it because there exist companies that will bill you twice the cost for materials that you can find easily at affordable prices. Compare the estimates well and outweigh the pros and cons before you choose your company.

Keep the house simple

If you are looking to design and build your house on a budget, then, keep the shape of the house simple. Don’t opt for shapes that constitute a triangle, hexagon or trapezoids. Opt for simple square or rectangular shapes which are easy to build and hence will save you some money. The more complex the shape it, the more cost it will involve. Also, don’t opt for ceiling that are shaped like a dome or resemble a cathedral. Instead, go in for simple roof lines that will not only look elegant but will also be light on your pocket.

Build small but tall

Yes, this is true! The best way to control costs when you design and build your house is by keeping it compact horizontally but extending it vertically. This is because the cost incurred for laying the foundation and the roof will be less in small building irrespective of the number of floors they house.