Five Steps to Remodeling An Old Home

Buying an older home can be a bargain for those prepared to meet the challenges that age, wear and tear presents. While older homes have character, larger rooms and style, they also have their downsides. When you decide to remodel an older home, taking certain steps will help the project to go smoother and easier.

1. Set up a plan for each room.

If funds permit, you can remodel the entire house at once. More often than not, this is not the case. Take this lack of funds as an opportunity and focus on one room at a time. Make a list of everything in the room that needs to be repaired/replaced/upgraded such as wiring, insulation, plumbing, flooring, walls, ceiling and outlets. Study magazines and online showrooms for ideas about making the room fit your design style and dcor. Do not worry about prices at this point; list everything you need and want for the room. List the roof and attic as a separate room for the house. As you prioritize the room order, make sure to put the roof and attic at the top.

2. Set a budget for each room and stick to it.

Making an sticking to a budget can be a tricky exercise if you are not familiar with the average cost of a project. To get an idea, you can call a professional to discuss the project and obtain an estimate. Of course, doing the work yourself will save money, but some tasks need to be done by a professional such as electrical wiring and plumbing and gas lines. If you decide a part of the house needs to be water blasted, you may want to find a professional as well. You can easily find companies who provide these services through an Internet search, for example water blasting St. Louis. The simple search will give you plenty of businesses so you can find the right one to fit your needs.

3. Have a savings account to act as a buffer.

Include the cost of permits and the possibilities that more work may be required for each project than the initial projection. For example, you might figure $10,000 for a bathroom remodel. In an older home, it would be wise to have a savings account to act as a buffer. For the bathroom, figure an additional $3,000 to $5,000 for unseen repairs. Older bathrooms often have leaks in the plumbing; rotted wood and insulation need to be replaced.

4. If you are going to hire a contractor, get several estimates first.

Ask friends and neighbors to recommend contractors in your area. Set different appointments for each to inspect your project and make estimates. Discard the highest and lowest bids and set aside the top three middle contractors bids. Investigate each contractor for ratings in different places such as the Better Business Bureau and online recommendation sites. Ensure the contractor has workmans compensation insurance. Before signing any contract, hire an attorney to interpret and explain it to you.

5. Take the time to upgrade as you go along.

Many older homes receive a remodel that only brings the house up to a livable standard. A remodel is the perfect time to upgrade wiring to accommodate modern electronics and appliances. Incorporate energy efficient building materials such as insulation, roofing, windows, doors and more. Over time, the money you save on utility bills can pay for the upgrades.

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What Every First Time Home Buyer Needs to Know About Purchasing Their First Home

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Buying a first home can be a daunting experience. For as much excitement as there is, the process can be testing, trying and overwhelming. I spoke with my friend and Realtor Simon FitzPatrick of Simon FitzPatrick Exceptional Properties to help break down the process for those who are about to embark on this incredible journey.

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The process of buying a home is an intensive one. Before most people contact an agent, they’ve actively been searching and researching the internet for as long as 6 – 9 months. They need to understand the role of their real estate agent and they need to learn what their tolerances are: Do they want to renovate a home or are they looking for something more up to date. In most cases, a first time home buyer will not walk into a turn-key home. The first time home buyer also needs to understand the entire financing process, which can be quite complex.

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The financing process can be complicated. There’s research, analysis and operations. This is most likely the largest purchase these buyers have ever considered, so they are cautious and understand they are taking a big risk. These buyers are often younger, in their early 20s to early 30s, need a good bit of hand-holding and almost always have a parent or set of parents involved with them. The parents can often be a deal’s “kiss of death” as they too often compare today’s homes and prices to those of their youth. Often they will state that a home is too small, too expensive, or not good enough, simply because they are comparing today’s market to that of when they purchased their first homes.

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Generally this young couple is moving from a smaller apartment or condominium and needs to envision how their first home will be used, decorated and lived-in in the future. They will need to consider which neighborhood to select based on the school systems. Another thing many will need to think about is whether it is important to be near a commuter train or highway. When planning for a family, they will need to estimate how much space, or how many bedrooms they will need in the immediate future so that they buy enough of a house without buying too much house. Fitzpatrick tells all his first time clients that they should expect to stay in their first home for at least 5 – 7 years to maximize their return on investment.

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First time home buyers are generally unaware of the time frame from accepted offer to closing. When an offer is accepted the buyer sends his paperwork to the mortgage company for review. It will take 45 to 60 days before they can expect to be able to move in. The process flows like this:

Today’s lenders are extremely cautious, therefore it is much harder for mortgages to be approved – credit scores must be in excellent standing and finances must be approved.

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In addition to the purchase price of the home, the home buyer must be prepared for legal fees, $500-$700; home inspection fees, $400- $1,500 and must have 1% of the purchase price to put down at the time of offer which is put directly into an escrow account. When offer is accepted, 4- 9% of the agreed price needs to be put down in cash.

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There’s more to buying a home than what meets the naked eye. A buyer needs to be aware of the additional costs involved. There are attorneys fees which vary from $500 to $700. The attorneys perform a Title Search. This basically is a guarantee that there are no unpaid mortgages, liens or any other other potential problem that would prevent the buyer from taking full home ownership. There are contingencies to the purchase, such as the home inspection, which looks for all possible structural as well as other problems that could potentially exist that are invisible to the naked eye. A home inspector will look at the roof, chimney, faucets, pipes, furnaces, central air systems. Every light switch and faucet will be tested. No stone is left unturned.

This is a very thorough process. Additionally a home inspector will look for any possible signs of structural damage, as well as possible termite damage. A radon test will be performed, and if necessary wells and septic systems will be tested. This is not an inexpensive investment. Based on the thoroughness of the inspection and the size of the home, a home inspection will run you  anywhere from $400 – $1500. This is non-refundable. Once the inspection has been completed and if matters are present that concern the buyer, the buyer can then address these issues with the homeowners. The homeowners can reduce the selling price or offer to fix any problems themselves. If the problems cannot be addressed, the buyers can back out of the contract without penalty and get all their money back, save for what they spent on the inspection and legal feels.

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A realtor acts as a marketing specialist. He will show his clients the properties that match their needs and desires and will discuss the pros and cons regarding such properties. He will assist his clients in preparing an offer. He will act as a project manager and oversee the operations of the transaction from offer to closing. A realtor can often play the role of counselor. Purchasing a home can be both a daunting and very emotional undertaking. Often expectations are high and then disappointment is great if an offer is not accepted, or if a deal falls through. A realtor can help a client to visualize a space. He will also help to keep expectations realistic. Often, first time homebuyers have unrealistic expectations about the purchase of their new home.

A realtor will help to keep clients focused. Often they lose sight and become distracted by the unimportant cosmetic features of a home and not what really matters, the structure and the “bones” of the house. He will also help his clients with budgeting. Often buyers are unaware of the financial responsibilities of homeownership. He will often help clients map out a budgeting plan and advise them to take into consideration such things as taxes, mortgage and running costs that can include, but are not limited to, lawn care, heat, electric, water, and garbage removal.

Having worked with many Realtors, myself, over the years, I feel the need to add that the fit and personality must be right. Interview your realtor as you would anyone else you would hire.

Five Situations You Might Consider Hiring a Contractor

Remodeling your home is a big undertaking. Its also an expensive job, which is why many people make the decision to do a lot of remodeling projects on their own. While there is nothing wrong with making changes on your own, there are a few situations in which it might be a better idea to simply hire a contractor. The following are a few situations when you may consider hiring a contractor instead of doing the project yourself.

You Know Nothing About Home Repair or Remodeling

Just because you watch a lot of do-it-yourself shows on television does not make you a professional. If you know nothing about contracting, remodeling, building, tools, electric, plumbing, or anything else typically involved in remodeling projects, its probably not in your best interests to do the job yourself. It might seem less expensive to do it yourself, but your rookie mistakes could end up costing you more than it would have cost to hire a contractor. If you have never done they type of remodeling you want done, it is probably a good idea to hire a contractor.

You Dont Have the Time

Say you want to remodel your entire kitchen, but you work 80 hours every week and travel four or five days a month for work. You simply do not have the time to complete a home renovation project on your own. In this instance, hiring a contractor can prove invaluable. You dont want to remove your fridge, stove, and the rest of your kitchen only to leave your wife and kids at home without a kitchen for weeks until you get a chance to finish your project. Hiring a contractor saves you precious time. While it will almost definitely cost you more to hire someone than it would cost to do it yourself, time is money and you will be able to spend your valuable time with your family instead of on a massive home project.

Plumbing

Bathroom and kitchen remodels involving moving the plumbing often require a contractor. Even if you know nothing about plumbing, its not too difficult to replace a toilet or sink. However, if you want to move those items to the other side of the room, you need to move your plumbing. Not knowing anything about plumbing can make this job especially difficult. If you want to completely move the plumbing fixtures in your bathroom or kitchen around, you should probably call a plumber to do the job.

Electrical Work

Playing with electricity is a dangerous job, even for professionals. If you are doing any sort of home improvement project that involves moving electrical outlets or other electric work, hiring a contractor is the safest option. Electricians are educated and well-versed in working with electrical issues in your home. It could save you a lot of money and time to have an electrician do the job right the first time.

Structural Changes

Taking a hammer to that wall in between the dining room and living room to make one big room might seem like an easy job, but it could be disastrous if you dont know what you are doing. Structural changes can be difficult and dangerous. You need to make sure you arent knocking down any of the important pillars holding the house up. Hiring a professional is a good way to ensure your home remodel is done right, saving you both time and money. The professional will have a better idea of which walls you can and cannot knock down, helping the entire process to go more smoothly.

About the Author

Kandace Heller is a freelance writer from Orlando, Florida. For those interested in hiring a contractor, Kandace suggests One Way Construction LLC.

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