Repair, Rehab, Remodel

That’s the message from the National Association of Home Builders (NAHB) Remodelers and the Northeast Florida Builders Association (NEFBA) Remodelers Council throughout May, in recognition of National Remodeling Month.

“Remodeling not only enriches a homeowner’s quality of life, but it can also provide numerous financial rewards,” says NAHB Remodelers Chairman Lonny Rutherford, a professional remodeler from Farmington, N. M. “Smart remodels increase home value and save homeowners money by improving home performance.”

With interest rates at historic lows, homeowners can now move forward with long-delayed projects that help maintain their home’s value by modernizing and adding amenities. Attention to home maintenance adds comfort, enhances home performance and avoids future costly repairs.
And there are immediate savings on energy and utility bills after upgrading home efficiency.

“It doesn’t take much effort to increase home values. Adding a full bath or renovating the kitchen are great investments, but smaller projects such as replacing siding or adding a deck improve the space and beautify a home,” adds Rutherford.

According to the experts at NAHB Remodelers, getting the best return on investment doesn’t always mean spending big. For example:
> Fix drafts for better air flow or repair the roof to stop leaks. Even simple repairs can drastically improve home performance and protect the structure’s integrity.
> Add the most value for the least cost by replacing siding or adding a small bathroom.
> Expand your home to the out-doors by adding a deck, patio or porch where you can relax or entertain.

Plenty of Northeast Floridians are already taking that advice. A growing number of homeowners are tweaking, freshening or beautifying homes to suit their preferences and lifestyles.

So, despite the soft economy, remodeling jobs are on the rise. Consequently, so are the number of people and businesses who’re listing remodeling as one of their specialties. And with more companies competing for projects, picking the right contractor becomes even trickier.

If you’re contemplating a remodel or renovation, where should you begin? We talked to some seasoned local pros looking for answers to several of the most commonly asked remodeling-
related questions.

There’s no exact science to getting started, our experts agree, but these insider tips are certainly worth paying attention to.

I’ve already bid out my project to three different contractors, and they came back with very different prices. What do I do now?
Bids for remodeling jobs can certainly vary. But you should still be careful when considering any bid that’s substantially lower than others.

“Often an unusually low bid has very minimal allowances for things like fixtures and finishes, when in reality, it will cost more in the long run to get what you want,” says Scott Barnette, chairman of NEFBA’s Remodelers Council. 

The bottom line: Hire the contractor that has the best track record, the strongest references and the most experience with the type of job you’re considering.

“When you find a qualified contractor that you feel comfortable with, he or she should be able to tell you upfront whether or not your project can be done for what you’d like to spend,” Barnette explains. “Doing that rather than relying on a series of random bids can save both you and your contractor time and money.”

Now that I’m planning a remodel, how do I make sure I get my project completed in a timely manner and within my budget?
A wise man once said, “Everyone desires fast, good and cheap—but you can only have two.” In remodeling, maybe you’ll get all three but sometimes compromises are required.

Chances are various aspects of your job will be handled by a pool of hand-picked subcontractors supervised by the contractor. Right now, in a slow market, good subs are readily available and most jobs can be completed on a timely basis.

As for quality, your initial choice of a contractor is the most crucial factor.

“A lot of us in the remodeling industry have horror stories of stepping in to remedy less-than-ideal situations,” says Barnette. “For example, I was called in to complete a kitchen remodel where the original contractor received $30,000 upfront, gutted the kitchen and then decided he couldn’t do the job and walked away with the money.”

As far as your budget is concerned, finishes such as flooring, countertops, cabinets and fixtures can be the biggest budget busters.

“If the tile allowance in a job is $7 per square foot and the home-owner has her heart set on a selection that costs twice that much, obviously this will add time and money to the project,” says Barnette. “People just need to be aware of these types of situations and factor them into the bottom line.”

Communicating what you’d like with your contractor, and getting an idea of the range of available finishes from the design phase onward, is the best way to keep costs within budget without sacrificing the quality or look of your finished project. 

In addition to all the other good reasons to remodel your home, you can now add a sizeable tax break to the mix. In 2009 and 2010, tax credits of 30 percent of the cost—up to $1,500—are available for the following energy-efficient improvements to existing homes only:
> Windows and doors.
> Insulation.
> Roofs (metal and asphalt).
> Heating, ventilating and air-conditioning.
> Water heaters (non-solar).
> Biomass stoves.

Through 2016, tax credits are available of 30 percent of the cost—with no upper limit—for the following energy-efficient additions to both new and existing homes:
> Geothermal heat pumps.
> Solar panels.
> Solar water heaters.
> Small wind energy systems.
> Fuel cells.

Find out more about available tax credits on the Web at www.energystar.gov/taxcredits.

Top 10 Tips for a Successful Remodel
1. Find a communicator.  Does the contractor listen? Does he or she answer questions clearly and candidly? Can you reach him when you need to? Does he return phone calls promptly? Does he let you know when problems arise and work with you on solving them?
2. Make sure you’re compatible. You’ll spend a lot of time with the contractor, so it’s important to have a good rapport and trust in him. 
3. Set a schedule. You and the contractor should agree on the schedule up front to avoid conflict and problems later in the project.
4. Request a written proposal. Two people can remember the same conversation differently. Get the proposal in writing.
5. Sweat the small stuff. There are numerous little details that need to be settled before work starts. What times of day will crews be working? How will your property be accessed and protected? How will cleanup be handled?
6. Be flexible. Expect the unexpected and be flexible. Remodeling is intrusive even in the best of circumstances.
7. Discuss change orders. There’s always the chance you’ll want to change materials or other project details as the project progresses. Agree in advance how these changes will be handled and understand that changes could affect the schedule and the budget.
8. Have a detailed contract. The contract should include these elements:
> A timetable for completion of the project.
> A price and payment schedule.
> Detailed specifications for all products and materials.
> Insurance and permit information.
> Procedures for handling change orders.
> Lien releases and provisions for conflict resolution.
> Notice of your rights under the Federal Trade Commission’s Cooling Off Rule.
> Other details, such as cleanup, property access, etc.
9. Ask for a written lien waiver. If the contractor hires subcontractors for portions of the work, it’s his responsibility to make certain they’re compensated. In order to ensure this has been done—and to protect yourself—ask for a written lien waiver when the work is finished.

Cost vs. Return
Each year Remodeling Magazine compiles a Cost vs. Value Report, the industry’s only detailed account of investment returns for remodeling projects. The report establishes cost-to-construct benchmarks for common remodeling projects, then estimates how much of that investment will be recouped at resale in the current market. The following is the breakdown of numbers for the Jacksonville market. 

MAJOR KITCHEN REMODEL
Average cost: $52,366   
Average resale value: $40,037
Expected return: 76.5 percent

MINOR KITCHEN REMODEL
Average cost: $19,981     
Average resale value: $14,323 
Expected return: 71.7 percent

FAMILY ROOM ADDITION
Average cost: $71,070     
Average resale value: $52,229 
Expected return: 73.5 percent

BATHROOM ADDITION
Average cost: $31,974     
Average resale value: $22,614 
Expected return: 70.7 percent

BATHROOM REMODEL
Average cost: $13,577     
Average resale value: $9,554 
Expected return: 70.4 percent

MASTER SUITE ADDITION
Average cost: $87,101     
Average resale value: $56,760 
Expected return: 65.2 percent

TWO-STORY ADDITION
Average cost: $128,134     
Average resale value: $87,444 
Expected return: 68.2 percent

HOME OFFICE REMODEL
Average cost: $26,407     
Average resale value: $15,141 
Expected return: 57.3 percent

DECK ADDITION - WOOD
Average cost: $8,952     
Average resale value: $7,070
Expected return: 79 percent