Time is right for a home renovation project on clarkhoward.com

Now is a great time for a home renovation project. Business is so slow that contractors who couldn't return calls previously are now begging for work. The whole process is more affordable. However, The Wall Street Journal reports that the payback during resale is not amazing. For example, you can expect to get back about 75 cents on the dollar if you're doing a big kitchen remodel. So try a minor upgrade instead that can freshen up your home and doesn't cost a fortune. But make sure you're doing it for the right reason -- because you and your family will enjoy the results. Don't go chasing a financial reward that's not going to be there.

Of course, having contractors in your home is not enjoyable. Clark's rule of thumb is expect it to run 30 percent over-budget and for it to take 50 percent longer than planned. One word on expense: The more specific you are about what you want to accomplish -- as to the materials, the scope of work -- the more likely you'll be happy. Hiring a contractor is like getting hitched. It's much easier to get into it than it is to get out. And the honeymoon period ends very soon once they're on board. So do thorough reference checks. Ask the contractor's former clients, "Were they on schedule? How much did they go over-budget?" Go see the homes of former customers if possible. If deadlines are important to you, write it into the contract. But in order for that clause to have teeth, you need to stipulate monetary penalties if work runs over-schedule.

What others are saying

Managing a Renovation
I'm a life-long remodeling coach, teacher and project manager. I renovated Avery Fisher Hall at Lincoln Center (NYC) and hundreds of residential properties in Raleigh, NC including historic landmark Victorians, little brick ranches and falling-down, hand-built bungalows. My best advice for every step can be found at www.managingarenovation.com.
By Susan Solakian @ 10/19/09 10:37:00 AMreport abuse
Managing a Renovation
I'm a life-long remodeling coach, teacher and project manager. I renovated Avery Fisher Hall at Lincoln Center (NYC) and hundreds of residential properties in Raleigh, NC including historic landmark Victorians, little brick ranches and falling-down, hand-built bungalows. My best advice for every step can be found at www.managingarenovation.com.
By Susan Solakian @ 10/19/09 10:35:54 AMreport abuse
HOME REMODELING TIPS (Redux)
1. Good contractors always have work; at least 1/2 of the American housing stock is over 30 years old now. Very-low bidders know they will lose money if they don’t cut corners. If you hire them, be ready for shoddy work and subs that don't show up when they should.

2. Remodeling Magazine Online publishes an annual study of about 20 popular remodeling projects. They collect cost data from contractors across the country and have it reviewed by independent appraisal firms. The resulting Cost vs. Value report will tell you what you can expect to get back in EQUITY for your remodeling dollar. Average payback is about 75-80% of your cost if you sell within a year. But the real return on a major renovation is INTANGIBLE; you’ll love living in your home for many years to come.

3. When you sign a remodeling contract, your home becomes the contractor's workplace. The most cost-effective thing you can do is to move out - lock, stock and barrel. The cost of labor represents about 75% of the contractor’s costs. The faster he can move, the less you'll have to pay.

4. AIA contracts are nearly incomprehensible. My contract form took 20 years to perfect. It addresses, in simple English, every problem I've ever encountered on over 400 projects, and has never failed to keep my clients safe.

5. Setting a budget that you won't exceed is not difficult. Set a cap, and then set aside 10% of that amount for non-construction costs like loan closing costs and architect’s fees. Then set aside 20% of the remaining budget for surprises. The rest can be committed to the initial construction contract. (If you add those two set-asides together, you’ll see why most homeowners spend 30% more than they planned.)

6. To save money without adding risk, do a lot of preparation yourself.

* Thoughtful planning is free. If you go to your architect with a long list of what you like and what you don't you'll be well on your way to getting what you want.

* Hire the best residential remodeling architect you can find. With a meticulous set of drawings, your contractor will have all the information he needs to do the job right.

* Find three really good bidders by asking other professionals who review work-in-progress every day, for referrals. Home equity lenders are great resources.

I've spent a lifetime managing substantial residential renovations. My new book, "The Homeowner's Guide to Managing a Renovation," will be on bookshelves everywhere in a few days. If you would like a review copy, let me know. I would be happy to send you one … contract included.

Susan Solakian
Remodeling Coach
Renovations Consulting
By Susan Solakian, Author of Homeowner's Guide to Managing a Renovation @ 10/26/08 07:41:06 PMreport abuse
Home Remodeling Tips
1. Good contractors nearly always have work; at least 1/2 of the American housing stock is over 30 years old now. The very-low bidder knows he will lose money if he doesn't cut corners. If you hire him, be ready for shoddy work and subs that don't show up when they should.

2. Remodeling Magazine Online publishes an annual study of about 20 popular remodeling projects. They collect cost data from contractors across the country and have it reviewed by independent appraisal firms. The resulting Cost vs. Value report will tell you what you can expect to get back in EQUITY for your remodeling dollar. Average payback is about 75-80% of your cost. But they miss the point. The real return on a major renovation is INTANGIBLE; you’ll love living in your home for many years to come.

3. When you sign a remodeling contract, your home becomes the contractor's workplace. The most cost-effective thing you can do is to move out - lock, stock and barrel. The cost of labor represents about 75% of the contractor’s costs. The faster he can move, the less you'll have to pay.

4. He who writes a contract always writes it to his own advantage. The AIA contracts are nearly incomprehensible. My contract form took 20 years to perfect. It addresses, in simple English, every problem I've ever encountered on over 40 projects, and has never failed to keep my clients safe.

5. Setting a budget that you won't exceed is not difficult. Set a cap, and then set aside 10% of that amount for non-construction costs like loan closing costs and architect’s fees. Then set aside 20% of the remaining budget for surprises. The rest can be committed to the initial construction contract. (If you add those two set-asides together, you’ll see why some homeowners think they spent 30% more than they planned.)

6. To save money without adding risk, do a lot of preparation yourself.

* Thoughtful planning is free. Go to your architect with a long list of what you like and what you don't (in your current house) you're well on your way to getting what you want.

* Hire the best residential remodeling architect you can find. With a meticulous set of drawings, your contractor will have all the information he needs to do the job right.

* Find three really good bidders by asking other professionals who review work-in-progress every day for referrals. Home equity lenders are great resources.

I've spent a lifetime managing substantial residential renovations. My new book, "The Homeowner's Guide to Managing a Renovation," will be on bookshelves everywhere in a few days. If you would like a review copy of my book, let me know. I would be happy to send you one … contract included.

Susan Solakian
Renovations Consulting
By Susan Solakian @ 10/26/08 07:29:38 PMreport abuse
ripped off by Heating and Air Company
Who do you direct a complaint to if you think you are being ripped off by a Heating and Air Company?
By Louise Tallman @ 08/07/08 10:21:02 PMreport abuse

Managing a Renovation

I'm a life-long remodeling coach, teacher and project manager. I renovated Avery Fisher Hall at Lincoln Center (NYC) and hundreds of residential properties in Raleigh, NC including historic landmark Victorians, little brick ranches and falling-down, hand-built bungalows. My best advice for every step can be found at www.managingarenovation.com.

By Susan Solakian @ 10/19/09 10:37:00 AMreport abuse

By Susan Solakian @ 10/19/09 10:35:54 AMreport abuse

HOME REMODELING TIPS (Redux)

1. Good contractors always have work; at least 1/2 of the American housing stock is over 30 years old now. Very-low bidders know they will lose money if they don’t cut corners. If you hire them, be ready for shoddy work and subs that don't show up when they should.

2. Remodeling Magazine Online publishes an annual study of about 20 popular remodeling projects. They collect cost data from contractors across the country and have it reviewed by independent appraisal firms. The resulting Cost vs. Value report will tell you what you can expect to get back in EQUITY for your remodeling dollar. Average payback is about 75-80% of your cost if you sell within a year. But the real return on a major renovation is INTANGIBLE; you’ll love living in your home for many years to come.

3. When you sign a remodeling contract, your home becomes the contractor's workplace. The most cost-effective thing you can do is to move out - lock, stock and barrel. The cost of labor represents about 75% of the contractor’s costs. The faster he can move, the less you'll have to pay.

4. AIA contracts are nearly incomprehensible. My contract form took 20 years to perfect. It addresses, in simple English, every problem I've ever encountered on over 400 projects, and has never failed to keep my clients safe.

5. Setting a budget that you won't exceed is not difficult. Set a cap, and then set aside 10% of that amount for non-construction costs like loan closing costs and architect’s fees. Then set aside 20% of the remaining budget for surprises. The rest can be committed to the initial construction contract. (If you add those two set-asides together, you’ll see why most homeowners spend 30% more than they planned.)

6. To save money without adding risk, do a lot of preparation yourself.

* Thoughtful planning is free. If you go to your architect with a long list of what you like and what you don't you'll be well on your way to getting what you want.

* Hire the best residential remodeling architect you can find. With a meticulous set of drawings, your contractor will have all the information he needs to do the job right.

* Find three really good bidders by asking other professionals who review work-in-progress every day, for referrals. Home equity lenders are great resources.

I've spent a lifetime managing substantial residential renovations. My new book, "The Homeowner's Guide to Managing a Renovation," will be on bookshelves everywhere in a few days. If you would like a review copy, let me know. I would be happy to send you one … contract included.

Susan Solakian
Remodeling Coach
Renovations Consulting

By Susan Solakian, Author of Homeowner's Guide to Managing a Renovation @ 10/26/08 07:41:06 PMreport abuse

Home Remodeling Tips

1. Good contractors nearly always have work; at least 1/2 of the American housing stock is over 30 years old now. The very-low bidder knows he will lose money if he doesn't cut corners. If you hire him, be ready for shoddy work and subs that don't show up when they should.

2. Remodeling Magazine Online publishes an annual study of about 20 popular remodeling projects. They collect cost data from contractors across the country and have it reviewed by independent appraisal firms. The resulting Cost vs. Value report will tell you what you can expect to get back in EQUITY for your remodeling dollar. Average payback is about 75-80% of your cost. But they miss the point. The real return on a major renovation is INTANGIBLE; you’ll love living in your home for many years to come.

3. When you sign a remodeling contract, your home becomes the contractor's workplace. The most cost-effective thing you can do is to move out - lock, stock and barrel. The cost of labor represents about 75% of the contractor’s costs. The faster he can move, the less you'll have to pay.

4. He who writes a contract always writes it to his own advantage. The AIA contracts are nearly incomprehensible. My contract form took 20 years to perfect. It addresses, in simple English, every problem I've ever encountered on over 40 projects, and has never failed to keep my clients safe.

5. Setting a budget that you won't exceed is not difficult. Set a cap, and then set aside 10% of that amount for non-construction costs like loan closing costs and architect’s fees. Then set aside 20% of the remaining budget for surprises. The rest can be committed to the initial construction contract. (If you add those two set-asides together, you’ll see why some homeowners think they spent 30% more than they planned.)

6. To save money without adding risk, do a lot of preparation yourself.

* Thoughtful planning is free. Go to your architect with a long list of what you like and what you don't (in your current house) you're well on your way to getting what you want.

* Hire the best residential remodeling architect you can find. With a meticulous set of drawings, your contractor will have all the information he needs to do the job right.

* Find three really good bidders by asking other professionals who review work-in-progress every day for referrals. Home equity lenders are great resources.

I've spent a lifetime managing substantial residential renovations. My new book, "The Homeowner's Guide to Managing a Renovation," will be on bookshelves everywhere in a few days. If you would like a review copy of my book, let me know. I would be happy to send you one … contract included.

Susan Solakian
Renovations Consulting

By Susan Solakian @ 10/26/08 07:29:38 PMreport abuse

ripped off by Heating and Air Company

Who do you direct a complaint to if you think you are being ripped off by a Heating and Air Company?

By Louise Tallman @ 08/07/08 10:21:02 PMreport abuse

Listen Live:

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Jan 10, 2008 -- Time is right for a home renovation project

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