ST. PETERSBURG, Fla. -- May 31, 2005 -- If you're about to embark on a remodel of your home, no matter how large or how small, it's important to do your due diligence before hiring a contractor. The following tips will help you ask the right questions, increasing the chances that your costs will stay in check and the quality of the job will remain high.
1. Don't make a hasty decision. Solicit at least two or three bids from contractors, check their references and investigate company reputations.
2. Ask contractors lots of questions. Important questions include: How long have you been in business? What kind of workers compensation and liability insurance do you carry? How many projects like mine have you completed? Can I go see them? Are you a member of a national trade association?
3. Talk to previous customers. Ask: Did the contractor communicate well and do a good job of listening to you? Did the crew show up on time? Was the job finished on schedule? Would you hire the remodeler again without hesitation?
4. The lowest bid may not be best. Consider other key factors, such as the feedback you receive from past customers and the contractor's reputation for professionalism and quality workmanship.
5. Put it in writing. Even if the contractor is a friend, make sure all oral agreements and promises appear in a written contract you both sign.
6. Set a budget. Before work starts, define your budget by selecting the products and materials you want. Include your selections in the contract to avoid confusion and needless change orders.
7. Avoid liens. After completion of a large job, withhold a portion of the payment (about 10 percent) for 30 days in case any liens emerge. If a contractor doesn't pay his or her subcontractors or workers, they may hold you responsible and place a lien against your home.
8. Know how to pay for the job. Aim for a down payment of 10 percent or less, and schedule payments at weekly or monthly intervals or after completion of each phase of the project. Never make final payment until you are satisfied with the work done and know that all subcontractors and suppliers have been paid.
9. Baby steps can be beautiful. Especially if this is your first remodeling project, you might want to begin with a smaller project first. Doing a larger remodel in stages is a good way to minimize your initial cash outlay.
10. Look into Title 1 loans. If you don't have much equity in your home, you can apply for a Title 1 loan to cover nonluxury home improvements. Banks and other lenders make these loans, and the Federal Housing Authority insures them against possible loss. The maximum loan amount is $25,000 for a single-family home, $17,500 for a manufactured home and $12,000 for a multifamily dwelling unit.
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