home renovation

8 Questions to Ask Before Hiring a Home Inspector

Dr Penny Pincher — Wed, 14 Nov 2018 08:00:11 +0000

It's important to get a home inspection when buying a house. There are many hidden issues that can emerge after you buy a property that are expensive to correct. Spending a few hundred dollars to have a professional home inspection beforehand is a good way to avoid costly surprises with your new property — but only if you get a reliable home inspector who will carefully check out your house and identify these issues.

This year, I discovered that an inadequate home inspection cost me over $10,000. My roof started leaking, causing damage inside. When a roofing contractor checked it out, he had me come up on a ladder and showed me that there were three layers of shingles on most of the roof. The new shingles on the top layer were covering up all kinds of problems underneath. The roofer was surprised that my home inspector didn't let me know about the poor condition of the roof. It turns out that my home inspector never even went up on the roof during his inspection. The inspection report had a photo of the roof taken from the ground, but it looked okay since it had new shingles on top. (See also: Thinking of Skipping the Home Inspection? Here's What It Will Cost You)

Had I known that the roof was failing, I could have negotiated a new roof as part of the purchase agreement, or I could have replaced the roof before it started leaking and saved myself a lot of stress. I could have avoided getting an inadequate home inspection by asking the right questions.

Here are some questions to ask before hiring a home inspector for your future home.

1. Who is recommending this home inspector?

Be wary of home inspectors who are recommended by your banker or by your real estate agent. These parties are motivated to have a home inspection that goes smoothly and results in a deal that closes so that they get paid. They will tend to recommend "easy" home inspectors that are not as likely to point out issues that could derail the sale.

2. What are your qualifications to be a home inspector?

Good qualifications for a home inspector would include experience working in the home construction or home repair industry and training to become a home inspector. But there are online courses that almost anyone can take and become a home inspector. I would be more comfortable hiring a home inspector who has background that goes beyond basic home inspection training.

3. How much experience do you have as a home inspector?

You can learn a lot by asking home inspector candidates how many homes they've inspected. A high number indicates that they're focused on home inspections and have likely learned from experience. A low number indicates that they're a newly minted home inspector, or that home inspections are just a side job and not their main focus.

4. What is included (and not included) in the inspection?

Your home inspection may not include everything you're expecting, so it's worth reviewing what's actually included. Home inspections may not include coverage for pests or hazardous materials such as lead and asbestos, radon, or mold. Inspection of structures not attached to the house such as yard sheds or other buildings and swimming pools may not be included.

Based on my recent experience, it's also worth asking if the inspector checks all parts of the roof for roofing issues. (See also: 5 Homebuying Questions You're Embarrassed to Ask)

5. Could you provide a sample home inspection report?

Some home inspection reports I've received over the years have a lot of "boilerplate" text and checklists that are not very informative. These reports rely heavily on automatically generated text about things that might be issues in general, but are not actually comments from the home inspector about the property. Reports that have a lot of photos from the inspection and comments from the home inspector with specific recommendations are the most valuable. Some inspection reports even have rough estimates for how much it would cost to resolve issues. Compare some sample reports and pick one that has information that'll be useful to you.

6. How much does a home inspection cost?

The buyer of a house normally pays for the home inspection, which typically runs in the range of a few hundred dollars. Compared to the price of a house, the cost of a home inspection is small, but you don't want to be surprised by a much bigger-than-expected home inspection bill.

7. When would you be able to complete the home inspection?

If you have signed a purchase agreement for a property, there may be a date by which the home inspection must be completed and accepted by the buyer. You need to get the home inspection report in time to use it to negotiate repairs from the seller, or even to be able to walk away from the deal if there are major issues. Find out if the home inspector you're dealing with has a huge backlog of work that would prevent him or her from meeting your schedule.

8. Can you walk through the house with me?

Walking through the property with the home inspector at the end of the inspection may be the most valuable part of the home inspection. This is an opportunity to ask questions and learn more about any issues that were discovered, and about the house in general. While you have access to the space, you can also take measurements and plan for where your big items will go when you move in.

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This article is from Dr Penny Pincher of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Architect, Designer, or Contractor: Who Should You Hire for Your Project?

Carrie Kirby — Thu, 23 Mar 2017 09:30:37 +0000

I'd like to add a bathroom to my home, but my budget will be limited. One thing I've been wondering: What professionals will I need to hire to do the job? Should I spend money on a designer or architect to plan the space out? Or should I just hire a contractor and tell them where I want the toilet, sink, and shower?

Researching this question, I learned that it's important to understand the difference between these professionals and what they do.

The architect

An architect comes to your home and listens to your hopes and dreams for the remodeling project, talks about your budget, then draws up a plan to make it happen. An architect's involvement could stop there, or you could hire them to manage the project, selecting and checking up on the contractor.

An architect's qualifications

Architects are state-licensed, a process that requires a degree in architecture, an apprenticeship, and an exam to prove their mastery of building technologies, structural safety, and regulations.

What an architect costs

The standard cost is $50 to $200 per hour, or a 5 percent to 20 percent project fee if overseeing the whole thing.

The designer

A designer will use their expertise to come up with appealing ideas for carrying out your desires, give budget estimates, and draw plans. A basic design would include the floor plan and built-in features such as cupboards, while a full-service designer might include color and material ideas, and even shopping for fixtures. Designers are less likely to manage the whole project than architects are, but some do.

A designer's qualifications

Some states license designers, while others don't. They don't generally need to have a degree, but you can find out if they've done good work by asking for customer references.

What a designer costs

Their rates are typically $50 to $200 per hour — yes, a similar range as an architect — although architects tend to charge more than designers. Some designers have a minimum project fee of, say, $5,000. One design firm recommends that you budget 8 percent to 12 percent of your project for design.

The contractor

Generally, the contractor will oversee the entire project and make sure everything is done according to your expectations. They will determine the cost and give you a contract, design it, provide the carpenter, plumber, and other workers, and supervise the work. The contractor may have a designer or architect in-house that they partner with, or they may be open to working with a professional of your choice. Many contractors are quite willing to do the design themselves, if given the opportunity.

A contractor's qualifications

Contractors must pass exams to become licensed, and without that license, they won't be able to pull permits with local authorities to get your job done on the up and up.

What a contractor costs

Instead of charging you an hourly rate, contractors generally pay themselves on a "cost plus" basis — that is, they take the amount they expect the project to cost to complete, then add a markup, often 50 percent. So, if they estimate that the labor and materials for your job will cost $20,000, they'll charge $30,000. That extra $10,000 isn't pure profit, though, since they'll have to pay overhead out of it.

So, which one should you hire?

Experts say it depends on the scope of the job.

"Many experienced contractors are as well equipped to deal with a simple remodel as an architect," writes Bob Vila. Because of minimum per-project fees, designer Carla Aston recommends doing the design yourself, with your contractor, if the project is under $10,000. If you want some design advice for small projects, you could hire a designer for a consultation, or work with someone who does online-only plans without physically visiting your space.

Another way to look at the size of the project is to compare it to the value of your home. A project costing more than 5 percent of a home's value calls for an architect, Stamford, Connecticut, construction manager William Harke told Houselogic. So, if your home is worth $500,000, and you have a $25,000 budget for a kitchen update, get an architect.

Personally, I let the contractor do the design for a $15,000 bathroom remodel, and while it worked out fine, I wished I'd had a little more input on ideas for, say, improving storage.

With projects that cost more, who you hire depends on how much structural change you're looking at. While both a designer and an architect may have plans checked by an engineer to avoid safety problems, you're better off with an architect if your project involves expanding the footprint of your home, moving walls, or adding a level. Designers should be able to create a room's floor plans and suggest finishes. An architect's strength tends to lean toward the structural, a designer's skews toward the aesthetic — although both will certainly consider both aspects of a plan.

Where I live, adding a bathroom will probably cost at least $25,000. Because that's more than $10,000, but less than 5 percent of my home value, because I won't need to change the structure of my home, and because I need ideas about how to fold as much storage as possible into a tight space, I plan to hire a designer — not an architect — for a consultation, and possibly to draw up the plan. I'll budget $2,500 of my $25,000 budget to pay this professional.

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This article is from Carrie Kirby of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Best Credit Cards to Use For a Home Renovation

Jason Steele — Mon, 27 Feb 2017 10:30:45 +0000

Millions of Americans enjoy repairing and maintaining their homes in their spare time. Many do it to save money on necessary repairs or to increase the value of their properties. And some just find the work itself to be rewarding.

When it comes time to invest in your own home renovation, you'll want to use the right tools and materials for the job, including the right credit card. The best credit cards for a home renovation can offer you rewards for your purchases, promotional financing options, and perhaps both.

Here are the best credit cards to use for a home renovation.

The Home Depot Consumer Credit Card

Home Depot is one of the largest home improvement stores, and if this is where you you plan to buy most of your tools and materials, the Home Depot Consumer Credit Card might make sense for you. This card offers six months of deferred interest financing* on purchases of $299 or more. If you don’t pay off the purchases within six months, you’ll be responsible for interest charges going back to the date of purchase.

If you need more than six months to pay off a purchase, you may be better off waiting for promotions that occur throughout the year offering special financing for up to 24 months.

One bonus of the card is that it gives you one year for returns, which is four times longer than the standard return policy allows. There is no annual fee*, and this card can only be used for purchases in stores and online.

Lowe's Consumer Credit Card

The Lowe's Consumer Card’s standard APR is a high 26.99%, but it offers attractive rewards and promotional financing options. When you use this card, you can receive one of the following three benefits: 5% off all purchases, OR six months of deferred-interest financing on purchases of $299 or more (interest is waived if you pay off the entire amount within six months of purchase), OR project financing on purchases of $2,000 or more, for 36, 60 or 84 months, with rates of 3.99%, 5.99%, and 7.99% respectively (cannot be used at Lowes.com, and fixed monthly payments are required).

If you’ve got a big project that you can pay off within seven years or less, the card is a pretty good deal. It carries no annual fee, but it is not part of a larger payment network so you can only use it at Lowe’s.

This article is from Jason Steele of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How Much Are Pricey Home Upgrades Really Worth?

Damian Davila — Mon, 03 Oct 2016 10:30:06 +0000

"Real estate investing, even on a very small scale, remains a tried and true means of building an individual's cash flow and wealth," writes Robert Kiyosaki author of Rich Dad, Poor Dad. (See also: The 8 Classic Personal Finance Books You Must Read)

But like with any other type of investment, you need to know what you're doing, or you'll end up eating your shirt. For example, you may think that some high-end projects, such as adding a deck that offers a majestic view or doing an upscale bathroom remodel, may provide you a great return on your real estate investment. However, the evidence from the 2016 Remodeling Cost vs. Value report from the National Association of Realtors (NAR) shows the contrary.

By taking a look at the project costs in 102 U.S. real estate markets, the NAR report provides a comprehensive review of what features provide you the best bang for your real estate buck. Let's round up a handful of "features" that can really boost the cost of a home, but may not actually deliver a lot of value. And we'll look at the projects you should take on, instead.

1. Bathroom Addition

The idea of having an extra bathroom so that your family members don't have to sit around for others to get ready for the day may sound like a great idea. But adding a full 6-by-8-foot midrange bathroom to your home only recoups just under 60% of your total cost, on average. In 2016, the national average cost for a midrange bathroom addition was $42,333, but offers only $23,727 in actual value — in other words, a net loss. Even worse, the NAR reported that only one out of the 102 U.S. markets provided a 100% return on this project on that year.

Going "upscale" on a bathroom addition doesn't fare well either. In 2016, the national average resale value for an upscale bathroom addition was only 0.5% better than that for a midrange bathroom addition.

What to Do Instead: Keep it simple and midrange. A bathroom remodel provides a better resale value than an addition. A midrange bathroom addition and a midrange bathroom remodel recoup 56.2% and 65.7%, respectively. Doing an upscale bathroom remodel only improves the resale value by 1% over the one offered by an upscale bathroom addition. Also, the cost advantage of midrange bathroom remodel ($24,000) over an addition allows you to pay back any financing more quickly.

2. Composite Deck Addition

Enjoying a hot cup of coffee by a bonfire during the fall, or reading an intriguing novel while getting a tan during the summer out on your deck sounds like it's worth every penny. But, the financial math doesn't add up.

Adding a 16-by-20-foot deck using pressure-treated joists supported by 4x4 posts anchored to concrete piers would run you a national average between $16,798 to $37,943, depending on the scope of your project. The resale value of a composite deck addition would only recoup $10,819 to $21,877, according to national averages.

What to Do Instead: If you really want to have that deck, go with wood instead of composite. Adding a midrange deck made out of wood provides a resale value over 10% higher than that of composite.

3. Backup Power Generator

We all want to be prepared for disaster, but the addition of backup power generator runs at $12,712, according to national averages. Worse, this project only recouped an average of 59.4% of its cost in 2016.

What to Do Instead: Forget about backing up your power and focus on replacing your entry door. Replacing the entry door to your home is a good idea because it can improve the security and ability to withstand the elements (and zombies!) from your home. Additionally, the right door can enhance the look of your home. While the in 2016, the cost of a midrange entry door replacement recouped 91.1% of its cost, in past years this project has recouped up to 128.9% of its cost! In the 2015 edition of the NAR report, entry door replacement received the top rank nationally in terms of cost recouped (101.8%). That year' survey revealed that a new steel door was the least expensive project and provided the best payback out of all projects across the nation.

Additionally, eligible ENERGY STAR doors can qualify you for up to $500 in energy efficiency tax credits.

The Bottom Line: The Simpler the Project, the Bigger the Return

Currently in its tenth year, the 2016 NAR report indicates that "the simpler and lower-cost the project, the bigger its cost-value ratio."

In 2016, four out of the top five projects that ranked best for cost recouped had a total cost under $5,000. These costs estimates were made assuming that you hired a professional contractor to complete the projects. Regardless of your budget, you'd be better off tackling two or more affordable projects that recoup at least 90% of their value, than just one high-end one with a recoup value under 60%. If you have great DIY handyman or negotiation skills, you could improve your investment return even further. (See also: 4 Times You Should Splurge and Hire a Pro)

As you can see from these sample projects, replacements cost less than alternative home renovation projects, such as a kitchen or bathroom renovation, and provide the best bang for your buck. Another home renovation project that can be completed within three days and that provides a high return on investment is garage door replacement. In 2016, a midrange garage door replacement would recoup about 91.5% of its cost.

How are you improving the market value of your property?

This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

10 Ways to Spruce Up Your Unfinished Basement for Under $100

Kentin Waits — Mon, 19 Jan 2015 12:01:15 +0000

If you watch HGTV long enough, you'll soon be convinced that every basement in the nation is a gleaming bonus space complete with glass-tiled bathrooms, recessed lighting, and in-floor heating. It's enough to create major basement envy and make you wonder if a home equity line of credit isn't called for in order to upgrade your own cave-like lower levels.

Or, you could just check out these 10 simple ways to spruce up your unfinished basement for under $100.

1. Chuck the Junk

Decluttering is the first step in any successful project and it's critical when sprucing up common catch-all spaces like basements and garages. If you struggle with the process, learn how to get rid of your junk and declutter with less drama.

2. Light It Up

Since basements don't get a lot of natural light, brighten things up with higher wattage bulbs. It'll make the space less spooky, more functional, and help show off the rest of the projects we'll cover.

3. Add Clip-On Shades

A lightweight plastic shade designed to clip directly on overhead bulbs is a simple, quick, and inexpensive way to dress up a ceiling light. For some reason, the shades are difficult to find at most retailers, but you can usually score them used for $10 or less on eBay or similar resale sites.

4. Get a Grip

Safety first. Since most unfinished basement stairs are crafted of simple two-by-fours, adding treads make them safer and improves their aesthetics. Paint stairs a neutral color first, add a railing if you haven't already, and install vinyl or rubber treads.

5. Hang Homemade Curtains

Sewing simple channel or tabbed curtains is the perfect weekend project to dress up all the windows in your basement. Depending on the size of the windows, consider repurposing matching tea towels or large cloth dinner napkins for this project (no hemming!). Create tabs from nylon ribbon or vintage neckties. Since natural light is at a premium in basements, make sure your rods are wide enough that when the curtains are open, no portion of the window is covered.

6. Dry It Out

Many times what keeps us out of our unfinished basements is the chronic dampness and resulting dank smell. If this is a problem in your basement, make solving it a high-priority project. Add a dehumidifier to combat the moisture and run it regularly, especially during summer months. Though dehumidifiers cost around $180 new, I just picked up a gently used one on Craigslist for $25 and it works like a charm.

7. Seal and Paint Walls

As with most projects, painting is a relatively simple way to make a dramatic change. If you have a large basement, control costs by focusing your efforts on those areas used most often by you and your family.

Before painting concrete walls, clean them thoroughly and scrub away any mildew stains, repair cracks with fast-setting hydraulic cement, and then prime with a concrete primer. Use a quality masonry paint for best results.

8. Add a Large Rug or Floor Mat

If your basement is well-sealed and stays dry during large rains, add a large area rug in key areas like the laundry, pantry, or crafting room. Though each space may not be finished in the traditional sense, inexpensive rugs, carpet remnants with finished edges, or interlocking floor mats can add a level of comfort that encourages expanded use for the whole family.

9. Add Shelving

Durable plastic shelves are perfect for the basement. They get items off of potentially damp floors, make use of vertical space, and encourage new levels of organization. A five foot shelf with four tiers retails for about $30.

10. Try Simple Decorating Projects

Once you have a clean, dry, safe, and well-organized basement, there's a lot you can do to incrementally improve the aesthetics. Consider differentiating work areas with paint colors and designs, adding pegboard to workshop areas, making a skirt for that old laundry sink, sanding and painting rusty pipes, or using salvaged vintage doors to create a unique folding room divider.

Remember, there's a lot of wiggle room between unfinished and perfectly finished. If you're not ready to make a huge investment in your basement, find a happy medium. With some clever ideas, sweat equity, and patience, you can create a much more comfortable and functional space ― without burying your budget.

Do you have an unfinished basement? How have you improved the way it looks or made it more functional without breaking the bank?

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This article is from Kentin Waits of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Is DIY Home Renovating for You?

Camilla Cheung — Tue, 21 May 2013 10:00:32 +0000

The DIY movement has really taken off in the last couple of years, and the average homeowner can easily access Internet tutorials on pretty much anything from crafting your own DIY art to installing new can lights to completely gutting and overhauling the plumbing in your master bathroom. But are you cut out for DIY?

Not everyone may have the temperament or skills to effectively renovate their home on their own, and a botched DIY job can end up costing you thousands of dollars in labor and materials. Before you start swinging that sledgehammer, consider whether DIY renovating is for you. (See also: Save on Car Maintenance With These 5 DIY Tips)

1. Are You a Meticulous and Patient Person?

DIY home renovation shows make complex tasks such as installing a lighting fixture or mitering corners for crown molding seem like simple, fast, and easy jobs. However, if you're a beginner to DIY, figuring out these tasks can take a long time and require careful study of tutorials, plans, and measurements. In some cases, a slapdash, haphazard approach can be dangerous and cause major problems down the line (especially with electrical and plumbing). Even if we're not talking about dangerous jobs, you can end up wasting a lot of material and time if you're not careful.

Are you the sort of person to measure twice, and cut once? Will you carefully study directions on how to install things correctly, or do you prefer to fly by the seat of your pants? Will you get frustrated quickly when things don't seem to fit together perfectly? Will your project sit half-done for the next six months (or years)? Consider your own personality before tackling a major DIY job. Although if you aren't a meticulous and patient person, this might be a good challenge to help you grow in that aspect.

2. Is It Worth Your Time?

Yes, providing your own labor can save you hundreds, if not thousands of dollars on a renovation project. But consider how much your time is worth. After over a year of renovating our home, my husband and I have adopted the motto, "Everything takes longer than you think." If you're planning to DIY after a long day of work, consider that you may only have a couple of daylight hours every evening. Also, spending your time doing DIY jobs can take you away from spending valuable time with your family.

On the other hand, working on DIY projects together can be a bonding experience for your family, especially if everyone enjoys working with their hands. And if you don't mind having a construction zone in your house for several months, the extra time needed to complete the project may not be an issue for you.

3. Do You Have the Tools?

Doing your own home renovation requires a lot of tools. Do you own, or can you rent or borrow the tools you need? If not, factor in the cost of buying the requisite tools into the cost of the project. Even rentals can cost quite a pretty penny, especially over several days while you learn how to use the tool in the first place. It might be worthwhile to hire in a contractor who brings in his own tools and can knock out the project in a couple of hours.

4. Do You Have the Skills?

Sure, those TV shows make DIY seem like a breeze, but believe it or not, many home renovations take skill. If you're a very handy person, you may be able to acquire those skills in the process and produce something that at first glance approaches professional quality. In many cases, however, your project may end up looking a little "too DIY." If you don't have an intuition for how things work, an eye for symmetry, and decent hand-eye coordination, DIY might not be for you.

Consider whether you can handle skilled jobs such as cutting and installing tile, leveling concrete, and drywalling. For example, my husband and I put up new drywall in our master bedroom. We completed it, but smoothing on drywall mud was a much more laborious and difficult job than we expected (and to this day there are still minor imperfections in the drywall seams). When it came time to tackle the drywall for the family room, we hired a contractor. For a few hundred dollars, he did a beautiful, professional job, and only took one day (it would have taken us a week or two).

5. What's the Worst That Could Happen?

If you're new to DIY, ask yourself what the worst-case scenario could be before you tackle a new project. If it's something with relatively low stakes, why not try it out?

Painting your front door or building a coffee table from scrap lumber are fun projects, and if they don't turn out perfectly, it won't really affect your home that badly. However, trying to install your own marble countertops could turn out very badly if you end up breaking a thousand dollars worth of stone. Roofing your own house could turn out extremely badly if you fell and broke your neck. So start small.

6. Do You Understand Workplace Safety?

Every year, thousands of DIYers are blinded, lose fingers, inhale noxious chemicals, fall off ladders, or are otherwise hurt or injured while working on a project for their home. Be informed on the necessary safety precautions to take. Invest in good safety glasses, filtering masks, gloves, and clothing.

The considerations above aren't to discourage you from attempting a DIY project. However, it may be wise to start small and work up to a larger project. Doing your own DIY can also be a great opportunity to grow as a person — to become more patient, more detail-oriented, and to see a task through to completion. And while some jobs may be best left to the pros, others can be successfully tackled by amateurs like us!

Have your home DIY efforts been successful? Have they been failures? Tell us about them in comments!

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This article is from Camilla Cheung of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: