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| Remodeling |
— Recycle Construction Waste
Eco-conscious remodelers recycle as much project waste as possible during a home-renovation project. For example, CG & S Design-Build brings four waste containers to a project site—for paper, metal, wood and concrete—in an effort to recycle more efficiently. “We are very aware that so much waste is traditionally put in a landfill, and we are trying to reduce that as much as we can,” Davis says.
For homeowners who want to promote sustainability, NARI remodelers can help homeowners navigate the path to greener living. Green remodeling gives homeowners the chance to combine earth-friendly building concepts with cost-saving solutions. NARI’s approach to green remodeling emphasizes comfort, health and efficiency for a happier home.
DEVELOPING A REALISTIC REMODELING BUDGET
Review these simple tips from NARI about developing a budget.
Determine what you can afford. It may seem obvious, but often homeowners may expect a remodeling contractor to create the budget for them, which is not a good idea.
Keep a reserve. Once you determine how much you can afford to spend on a remodeling job, decrease that amount by 10 to 20 percent. This reserve should be put away to cover any change orders or incidental charges accrued along the way, which will prevent a frantic scramble for additional funds at the end of the project.
Keep change orders to a minimum. It is easy for a homeowner to say, “A little more on this fixture doesn’t matter. It’s very little money.” Unfortunately, having that attitude also makes it easy to overextend a prepared budget. While it’s rare that any remodeling project proceeds without a single change order, homeowners can keep them to a minimum by sticking to their original plans. A change order is a written document detailing any requests to alter, change or remove any items found in the contract or project. There are four key origins of a change order:
FINANCING
Some homeowners obtain financing for a remodel, especially for larger projects. There are various financing plans readily available to homeowners, among the most popular being the home-equity loan, which bases the loan amount on the equity in the home.
Federal Housing Administration (FHA) loans specifically for home improvements are available through many banks and lending institutions. The FHA requires that the contractor be approved by the lender; but proceed with caution. That in itself does not guarantee the contractor’s work. Other financing options include personal loans and credit-card loans. For more information about financing a remodeling project, NARI’s Homeowner’s Guide online at www.nari.org/homeowners/guide/ discusses financing and more in greater depth.
Whichever financing a homeowner obtains, it’s recommended they stick to it. If the budget is “x” and reserve fund is “y,” don’t be afraid to tell the contractor that these are the budgetary parameters.
A professional remodeling contractor is familiar with the many financing options available and frequently can be of assistance in putting a homeowner in touch with various options, but it’s recommended that homeowners do their own homework on the available options as well.
Eco-conscious remodelers recycle as much project waste as possible during a home-renovation project. For example, CG & S Design-Build brings four waste containers to a project site—for paper, metal, wood and concrete—in an effort to recycle more efficiently. “We are very aware that so much waste is traditionally put in a landfill, and we are trying to reduce that as much as we can,” Davis says.
For homeowners who want to promote sustainability, NARI remodelers can help homeowners navigate the path to greener living. Green remodeling gives homeowners the chance to combine earth-friendly building concepts with cost-saving solutions. NARI’s approach to green remodeling emphasizes comfort, health and efficiency for a happier home.
DEVELOPING A REALISTIC REMODELING BUDGET
Review these simple tips from NARI about developing a budget.
Determine what you can afford. It may seem obvious, but often homeowners may expect a remodeling contractor to create the budget for them, which is not a good idea.
Keep a reserve. Once you determine how much you can afford to spend on a remodeling job, decrease that amount by 10 to 20 percent. This reserve should be put away to cover any change orders or incidental charges accrued along the way, which will prevent a frantic scramble for additional funds at the end of the project.
Keep change orders to a minimum. It is easy for a homeowner to say, “A little more on this fixture doesn’t matter. It’s very little money.” Unfortunately, having that attitude also makes it easy to overextend a prepared budget. While it’s rare that any remodeling project proceeds without a single change order, homeowners can keep them to a minimum by sticking to their original plans. A change order is a written document detailing any requests to alter, change or remove any items found in the contract or project. There are four key origins of a change order:
- The homeowner initiates one because they have changed their mind about the design or a specific product.
- Unexpected damage was found (termites, for example).
- A code violation is uncovered that affects the project.
- The proverbial, “while you’re at it…” That phrase can annihilate a budget. While it’s tempting to a homeowner to have his remodeling contractor complete handywork, it’s good to remember that any work not specified in the original contract will have an additional cost attached to it.
FINANCING
Some homeowners obtain financing for a remodel, especially for larger projects. There are various financing plans readily available to homeowners, among the most popular being the home-equity loan, which bases the loan amount on the equity in the home.
Federal Housing Administration (FHA) loans specifically for home improvements are available through many banks and lending institutions. The FHA requires that the contractor be approved by the lender; but proceed with caution. That in itself does not guarantee the contractor’s work. Other financing options include personal loans and credit-card loans. For more information about financing a remodeling project, NARI’s Homeowner’s Guide online at www.nari.org/homeowners/guide/ discusses financing and more in greater depth.
Whichever financing a homeowner obtains, it’s recommended they stick to it. If the budget is “x” and reserve fund is “y,” don’t be afraid to tell the contractor that these are the budgetary parameters.
A professional remodeling contractor is familiar with the many financing options available and frequently can be of assistance in putting a homeowner in touch with various options, but it’s recommended that homeowners do their own homework on the available options as well.
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