Home Improvement All-in-One For Dummies

Establishing the Scope of the Project

Where do you begin? First, you need to decide what you don’t like in the area(s) you plan to remodel. What doesn’t meet your family’s needs and lifestyle? What additional things do you need to make the area more livable? What have you seen in other homes (family’s, friends’, neighbors’, and so on) that works for them and may work for you, too? Answering these questions gives you insight into what you want and need and helps get your creative juices flowing. Use Table 4-1 to jot down your ideas.

Table 4-1 Determining What You Like and Don’t Like
What Works in the Room	What Needs to Be Changed
I Plan to Remodel	in the Room

Don’t forget to list the existing things in your home that do work and things you want to retain in the remodeled area(s). In most cases, you don’t need to totally gut the area. Yes, you may make major changes, but you probably don’t need to tear everything back to the wall studs.

After you make your lists, prioritize the items from most to least important, which will help you in the decision-making process. You may not get everything you want, but make sure to include everything you need.

Looking at Things Room by Room

Remodeling projects take on many forms, depending on which room is being made over. The following list looks at the rooms in a typical house, one by one, and shows you what you need to cover when assessing the situation for a remodel.

Living room: Call it a living room, a great room, or the room where you do your formal entertaining — it’s an important part of your home. You need to analyze a couple of critical things within its area for a remodel:

• Does the existing floor plan work? The original designer or architect had a specific layout in mind when designing the room, especially regarding traffic flow. You need to decide whether it works for you.

• Is enough light getting into the room? Do the existing windows do the job when it comes to size, shape, and location? Visit today’s model homes and you’ll see all types of window shapes used not only to allow more light into the space but also to enhance the look of the room. Size is another area in which windows have improved. Rooms with huge, multiple-window walls allow in ample light. And more light makes a space seem larger and more inviting.

Dining room: People do a lot of entertaining in this area, like a living room. It needs to work both size-wise and layout-wise, or you won’t want to use it. Most people remodel their dining rooms to increase space. Put in a dining table, eight to ten chairs, a china cabinet, and maybe a corner hutch, and you may not have enough room for your guests to sit down! Well, that may be a little extreme, but the room can feel mighty cramped and confined. For most folks, remodeling a dining room involves taking out a wall from an adjoining room or bumping out an area on the exterior wall to add floor space. Either way, this remodel is a major project and can cost you a substantial amount of money.

Family room: Real life happens for most families in this room. It’s where we watch TV, play video games, and work (or play) at the computer. It’s also where we bring friends for a night of relaxing, playing games, or engaging in good conversation. An open floor plan, appropriate lighting, and maybe a fireplace make this room the most comfortable room in the house.

The number-one addition for most family rooms is the installation of a fireplace. Whether it’s a fuel-efficient gas-fueled unit or one that burns real wood (still my favorite!), a fireplace brings warmth and coziness to a room like little else can.

Kitchen: The kitchen is the number-one remodeled room in the house. It’s also the one that gives you the best return on your remodeling dollar. You need to address cabinets, sinks, appliances, lighting, flooring, and decorating (paint and wallpaper) in a kitchen remodel. If you’re replacing cabinets and flooring, be ready to spend thousands. After all, the cabinets are the most visible items in your kitchen, so you want them to look as nice as you can afford. The floor also needs special attention because it’s likely the most used and abused floor in the house. Everything from daily dirt and grime to cooking residue and dropped dishes puts a kitchen floor through its paces.

Beyond the obvious visual items, you need to make sure that the layout works. If, for example, you have a small kitchen but are a multicook family, you may want to find a way to enlarge the kitchen space. This often means knocking out an adjacent wall or bumping out an area, as for a dining room. It also can be as easy as rearranging the kitchen’s layout. A qualified kitchen designer can help you analyze your existing kitchen’s layout, assess your wants for the new space, and create a new layout that gives you what you need.

Bathroom: Most folks want a sink, toilet, and tub or shower to make a bathroom serviceable. But who wants only serviceable? Bigger is more comfortable, especially when two people are trying to get ready for work or a night on the town at the same time. A bathroom, like a kitchen, often necessitates a new floor plan to make things work better. Installing a whirlpool tub, repositioning a conventional tub, adding or enlarging a shower, repositioning the toilet, and even adding a second (or third) sink are possible remodeling steps. Yes, they involve a lot of work and planning, and a professional carpenter and plumber should probably handle them. However, making these moves will make your mornings less cramped and just may get your days off to a better start.

Bedrooms: Most people remodel bedrooms to enlarge the space. Homeowners often take two small bedrooms and create one larger space by removing a wall. In some jobs, the homeowners add or enlarge closet space. Both remodeling projects are considered very doable but usually require at least some good, hard consulting with a building or design professional.

Basement: For some homeowners, remodeling the basement isn’t an option; they live in slab homes or in regions where basements aren’t available. But if you’re lucky enough to have a basement, consider finishing the space. It’s a great place for a second family room, especially one that serves as a playroom for the kids, or a home office. Don’t overlook an existing “finished” basement, either. What was good-looking and trendy 20 years ago doesn’t cut it for most folks today. By making a few updates, you can make your basement part of your livable space with the right wall and ceiling finishes and flooring.

Porches and decks: Don’t forget about outdoor spaces when considering a remodel. Screened porches, four-season porches, and large decks are areas that increase a home’s usable living space — not to mention increase its value. You can usually do these additions easily, structurally, because you add them to the outside of the house. A remodel requires a space for the door, but beyond that, most of the work occurs on the outside.

After you’ve taken a hard look at what you want to remodel, list all the materials and equipment you’re likely to need. Table 4-2 provides a handy place for you to do so. You can’t know everything you’re going to need, and you’ll probably forget a few things, but make as complete a list as possible so that you can proceed to the next step — looking at what the stuff’s going to cost!

Table 4-2 Listing the Materials You Need
Room or Project	Materials

Getting Estimates and Prices

If your project involves major (or even minor) structural changes to your house, you need to involve an architect, a contractor, and possibly even an engineer. Any structural change can affect the integrity of your house, and it must meet local building codes to ensure that the house remains structurally safe to inhabit. You also need to engage inspectors from your city’s various building departments — construction (building), plumbing, and electrical.

Choosing an architect or designer

If your project involves complex or detailed drawings and plans, don’t plan on having two or three examples to compare. Architects and most design and construction people don’t create elaborate plans without being compensated. It’s not like getting a lumber or materials price bid from a couple of different retail stores. You need to select a single designer or architect to work with, so here’s where you do your homework ahead of time.

Even though you won’t get several drawings or bids to compare, you should meet with at least two designers or architects, and for two very good reasons:

You need to see whether they can give you a rough plan that meets your wants and needs. If they can’t understand what you’re looking for, why would you hire them?

You need to determine whether your personalities are compatible. This factor is critical to a successful remodel. You must be able to get along with the designer so that both of you can listen to and discuss suggestions and changes without becoming agitated. Homeowners too often fail to thoroughly feel out designers and architects before hiring them. Eventually, they end up having to make a switch halfway through the project. In all instances, the change in personnel costs not only time but also big money.

Pricing materials

A visit to a local lumberyard or home center is a great way to begin the step of pricing materials. Don’t be afraid to visit a couple of different stores. Competition is fierce, and you may be surprised by what a particular retailer or supplier can do for you, especially if the store believes that it can get your entire order.

A thorough materials list is invaluable here. Providing the store with a complete list enables them to do a take-off (an estimate of materials needed and their total costs). Give the list that you created in the preceding section to each retailer and see which one gives you the best prices. Just make sure that you give out the same list each time so that you’re comparing apples to apples.

Don’t be afraid to ask one store to match a competitor’s price. Most retailers are willing to drop a few dollars (sometimes just pennies per item!) to get your business.

Try to work with one person at each store. You don’t want to explain your project to half a dozen people in the same store. Dealing with one person also helps you resolve any problems that may arise — for example, if a problem with your order pops up or if the materials don’t arrive on time.

After you have a couple of estimates in hand, do your homework. Don’t pick a product or material simply because it has the lowest price. Make sure that the prices are for the same product or for products of equal quality — the old apples-to-apples comparison. Check the brand, model, size, and so on to confirm that the products are comparable. If you’re not sure about the differences between two brands, ask! If you get evasive or hesitant answers, ask to speak to someone who can give you the information you want.

If you’re not familiar with a specific type or brand of product, ask to see it. Have your salesperson explain its various features. Listen to how the salesperson talks about the product, too. If he’s not behind it 100 percent, consider a different brand or model for equipment and a different supplier for building materials. Don’t be afraid to go with your gut. If the salesperson doesn’t seem comfortable selling you the product, consider a different one or ask to speak with someone else. Any good salesperson is unafraid to ask an associate for product information if he doesn’t know it well.

Another good source of product information is the Internet. Most manufacturers have Web sites to provide consumers with product information and evaluations, even if only their own evaluation. Also consider checking consumer advocacy magazines like Consumer Reports to see whether they’ve tested the type(s) of products you’re looking at. Their reports are very fair at evaluating and rating all types of products, especially home products, such as appliances.

Many remodeling projects involve opening, moving, or even removing an entire wall or part of a wall. If plumbing is part of the project, you may need to move drain lines. Either of these scenarios is considered a complicated remodeling project and, for most people, means hiring professional help, so remember to factor in labor costs. A good way to get an estimate is, once again, to consult your local home center. Most home stores offer installation as an option with the products they sell, so you should be able to get the price of the product with and without installation and then do the simple math. This method is not 100 percent precise, but it gives you a good ballpark figure to work with.

You have value: Estimating what your time is worth

One area that too many people overlook is their own time. Your time is valuable not only to you but also to your family and friends, so it’s critical that you figure out the best way to use your available time on a remodeling project. If the project’s going to tie you up every weekend during the summer (or even through a winter), but you could hire a professional to complete the job in, say, a couple of weeks, doing it yourself may not be worth it. You need to weigh the cost of hiring a professional versus what your time is worth to you. Remember, professionals do remodeling jobs for a living and get things done right and as quickly as possible. That’s how they make money. You, on the other hand, may have other things you would rather (or need to) do, so hiring a pro may make better sense.

If you do decide to handle some or all of the labor yourself, now’s a good time to ask for help or to have a favor returned. Keep in mind that not all helpers have the experience to do a really good job, so if you hire beginners, you’ll need to keep an eye on their work.

Making adjustments until everything fits

Establishing a workable budget usually means compromising on a few things. Here are a few ways to make your budget numbers add up to what you can afford to spend:

When pricing new products — for example, a whirlpool tub, a stove, or a refrigerator — consider getting one that has only the features you need and no extra bells and whistles. It’s sort of like buying a new car: The top-of-the-line model may be your dream machine, but the model a notch or two below probably does what you need it to do, and it’s still nice.

If you’re remodeling a bathroom or kitchen, consider leaving the drain lines where they are, especially if your budget is tight. Moving drain lines is time-consuming, which means a lot of money in labor costs (it’s usually best to leave this task to a professional plumber).

Do as much of the work as possible yourself. If you’re replacing kitchen cabinets, for example, why not tear out the old ones yourself? Most homeowners can do this part of the project; plus, it’s a great way to relieve some pent-up frustration.

If you’re set on using some expensive materials, plan on paying a professional to do the installation rather than starting the project yourself and calling someone in midstream. In addition to the fact that you’ll have to pay top dollar because you need help immediately, you may also have to pay to have someone correct your mistakes.

Don’t forget to figure in your time constraints. If the project is going to take longer than you can allow for your labor, budget for someone to do the work that you know you won’t have time to do.

Allowing for fun (and your mental health!)

You alone can’t wrap up many remodeling projects in a weekend or two. Even if you bring in the pros, you can expect your home and lifestyle to be disturbed for at least a short while. To avoid total chaos and keep family members acting civil to one another, allow room in your remodeling budget for eating out and maybe even sleeping away from the house.

Unless your remodeling project is off in some remote area of the house, preparing meals and finding a suitable place to enjoy them probably becomes a challenge, to say the least — especially if you’re remodeling a kitchen. Meals can throw a budget way out of whack. Why? It’s pretty simple, really. A family of four can easily spend $20 to $30 on an evening meal — and that’s if you go the fast-food route. Go to a sit-down restaurant and you likely spend $15 to $20 per person. If you factor in breakfast and lunch, the family spends at least $100 a day to keep your strength up. So budget accordingly.

You may see this as a good time to take your family or friends up on a favor when they ask what they can do to help. Inviting your family over for dinner or bringing in an already-prepared meal is a huge help, so feel free to ask. Remember, feeding the troops is just as important as swinging a hammer!

If your project is going to last for a substantial length of time, plan a weekend away somewhere near the middle of the project’s timeline. Go to a hotel for a couple of nights and relax. Take in a movie, see a play, go to a concert — just do something other than remodeling! This short break may be the best gift you give yourself during the project. Yes, you’ll spend some money, but this hiatus will bring you home rested and energized, ready to get back at it and get your project completed.

If you do build in a mid-project retreat, try to schedule it around a part of the project that involves fumes or odors — for example, if you’re having floors refinished or walls painted.

Considering Financing Options

After you determine how much money you want and can afford to spend, you need to find the funds. Finding the money to pay for a remodeling project may be the most important step in the project. After all, getting good prices on materials and fair estimates on labor doesn’t do you any good if you can’t pay for them.

You have several financing methods to choose from, depending on the scope of the project. What makes one better than the others? This section looks at the options that work for most folks and should work for you, too.

You shouldn’t use the following information as financial or investment advice. I’m providing it as a starting point to help you find the best way to pay for your remodeling project. As you would with any financial matter, consult your personal banker, financial counselor, or tax advisor.

Don’t start a remodeling project before getting your financing in order. Most lenders require that the house be appraised before they loan you money, and the house must be in sellable condition when it’s appraised. It can’t have walls being removed or a bathroom or kitchen being torn out when the appraiser comes to do the job.

Refinancing your home

For a remodeling project that’s going to cost thousands or even tens of thousands of dollars, refinancing the home is a popular method of paying for things. Most homeowners have built up considerable equity in their homes. Equity is your home’s current assessed value minus the total amount of mortgages or loans against its value. Refinancing is the process of paying off the existing mortgage(s) based on the current value of the house.

The best thing about refinancing is that the interest on the new loan is tax deductible. And with mortgage rates low (at least at the time of this writing), most homeowners can not only lower their monthly mortgage payment, but quite often put money in their pockets, even after paying for the remodel. Remember, all these figures depend on your home’s value minus the outstanding balance on the mortgages and loans against it.

Finding a lender for refinancing isn’t difficult, especially in today’s competitive lending market. Your bank is a good place to begin your search. Contact your current mortgage holder, too. The lender will be glad to talk to you, and going this route may make things easier because the lender already knows your credit history and is familiar with the property (your home). You can also contact a local real estate office. Real estate agents are in constant touch with mortgage officers who can give you a competitive current interest rate on a home mortgage.

Keep in mind that refinancing your home is almost the same as purchasing it for the first time, so you need all the closing documents from the current loan, employment information, and so on. Most mortgage officers are true professionals and will work with you through this seemingly daunting process.

Getting a home improvement loan

Many homeowners have enough equity in their homes that a home improvement or second mortgage is a viable option. The security for the loan is the assessed value of your home versus the amount you want to borrow. Second mortgage rates are generally a few percentage points higher than current first mortgage rates; however, the interest on most second mortgages is tax deductible. Check with your current mortgage holder about getting a second mortgage through that company, or check with any mortgage officer. Most companies that provide first mortgages offer second mortgages, too. Make sure to consult with a competent mortgage officer or your tax advisor before entering into a second mortgage.

Some lenders may offer a second mortgage that’s as high as 125 percent of your home’s current value. Although that may seem like an easy way to get all the money you need for your project, I would never recommend borrowing more than the current value of the property. If you do borrow more than your home’s value and the value suddenly drops, you could be in big trouble — especially if you find yourself having to sell your home and end up selling it for less (maybe a lot less!) than the amount of the mortgages or loans against it. When this happens, you, the seller, end up writing a check at closing to pay off the balance of the mortgages. I’ve seen this happen too many times, and it’s not a pleasant experience for the seller, the buyer, or the loan closer!

Charging on low- or no-interest credit cards

An option available to some folks is to open new low- or no-interest credit card accounts. Yes, doing so means adding another creditor or two to your credit record, but these cards also enable you to purchase things immediately without having to go to the bank. This option is handy when, for example, you see the tub or stove you want on sale for less than your estimate bid and you decide that it makes sense to purchase it now, even if you don’t need the item for several weeks.

Read the fine print that describes the card’s rules and regulations. Most of these cards offer very attractive up-front rates but hit you hard if you miss the payment date even once. For example, I’ve seen a card that offers a 1 percent rate on all new purchases; however, if you make just one payment late (even one day late!), the interest rate soars to around 20 percent — and stays there! Whenever possible, make your payments as soon as you can. In our house, we turn our payments right around on the day the monthly statement arrives. This way, we virtually ensure that we’ll never miss a payment due date.

Paying the old-fashioned way: Cash!

Most people don’t have thousands of dollars lying around or buried in coffee cans in the backyard. But if you do have enough ready cash available, consider using it to pay for the project. You’ll have the satisfaction of paying for the project completely, plus you may get discounts on materials if you don’t need to charge things. Remember, the retailer is charged for using credit cards and has to pass on that cost somewhere — and you’re that somewhere. Besides, the retailer gets its money immediately and doesn’t have to hassle with financing forms and such.

If you do plan to pay cash, consider opening a separate checking account dedicated to the project. A separate account helps you track your spending on the project and keeps your everyday expenses separate.

Watching Every Penny to Avoid Overspending

The number-one problem with remodeling projects is going over budget. Most people don’t consciously or intentionally overspend — it just happens. Most homeowners do their best to adhere to the budget they created, but unfortunately, a little overspending here and there adds up to going over budget. This section offers some suggestions to help you keep your spending in check.

Track and review expenses regularly

Getting cost estimates for materials and labor is only part of the financial picture. You need to set up a filing or tracking system so that you can check what you’re spending versus what you’ve budgeted. You can find a number of budgeting and record-keeping computer programs available. If you’re computer challenged or don’t have a home computer, you can find home record-keeping plans at most bookstores.

No matter what record-keeping method you choose, (and you really do need to choose one!), use it regularly! Update your records as you make purchases instead of saying, “I’ll take care of things on a weekly basis.” Continued purchasing without recording and reviewing expenses against your budget numbers is a quick and easy way to go over — or completely blow — your budget.

Review your records weekly, even if you didn’t spend anything that week. Besides seeing up-to-date numbers, you’re more likely to catch mistakes or remember a purchase that may not have made it into the records. Think about tracking your project purchases the same way you keep your checkbook ledger and balance current. If you’re like me, you hate finding one, two, or several items that you forgot to enter into the ledger. Boy, can that make your cash balance look bad, fast!

Looking out for sales

Shopping for remodeling materials is no different than shopping for everyday items. In other words, keep your eyes open for sale prices! For example, if you know that you’re going to get new countertop appliances and they’re on sale now, grab ’em! The same holds true for lumber and other building materials. If you know you’re going to need lumber, plywood, roofing, or other building materials, contact the retailer you plan to use and make sure that you can get those sale prices when it’s time to order. You may need to pay for the materials now, but at least you’ll get the sale price, even if the materials aren’t delivered immediately.

Buying big-ticket items doesn’t mean that you can’t or won’t find them at a good or sale price, so be vigilant about watching for sales.

Haul it yourself

One other area where you usually can save money is delivery. If the stuff isn’t too tricky to haul and you have access to the right type of vehicle, consider hauling things home yourself. Just don’t try to handle anything more than you can safely haul and then unload. Delivery drivers are usually skilled at maneuvering their vehicles in tight places, as well as unloading things quickly and safely.

If you do need to have things delivered and you’re ordering all your materials from one store, see if they can reduce or even waive the delivery charge. If you need multiple deliveries, see if you can get one or two of the deliveries at no charge. If not, at least ask for the store’s minimum delivery charge. Don’t be afraid to try to wheel and deal — the worst they can say is no!

Chapter 4

Working with (and within) a Budget

In This Chapter