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10 Reasons to Renovate Instead of Moving

10 Reasons to Renovate Instead of MovingAre you frustrated with the lack of a workable home office? Does your home really need a more functional and updated kitchen?  A larger, updated master bathroom? An accessible master suite on the main level? Instead of selling your house, you may want to consider renovating. Adding an extra room, reconfiguring existing areas or even tackling a second-story addition may be your most cost-effective and least disruptive option. Here are 10 reasons why people opt to renovate:

Moving expenses

RemodelorMove.com estimates the average cost of moving a typical $200,000 home (Charlotte’s April 2010 average sales price was $201,410, according to the Charlotte Regional Realtors Association), at a staggering $15,000 to $50,000. That includes moving preparation, the actual move, Realtor commissions, upfits and purchases for the new home, and a possible increase of $0 to $10,000 in property taxes.

Fees

That figure doesn’t include seller-paid closing costs, which typically run 3-5% of the sales price.

Hidden issues

While you know what’s in your home, you may be inheriting someone’s problems if there are issues that don’t show up on your new home’s inspection report. If the seller is making repairs, make certain they have been properly completed by a licensed, professional contractor -  electrical, exterior wood, roofing, boxing, siding and subfloor structural issues often won’t become apparent for several months or longer, when the cost to re-repair correctly will come out of your pocket.

Moving disrupts families

You’ll need to pack up personal belongings and keep the house in “ready-to-show” condition to be prepared for prospective buyers.

Moving disrupts networks

In addition to the friends you’ll be leaving behind, there are school, church and social changes that impact the entire family.

You may have to move twice

If you haven’t already located or closed on your new home by the time yours sells, you’ll need a temporary place to stay.

Double jeopardy

If you move before your existing home sells, you’ll need to cover two mortgages for an undetermined period of time.

Quicker than you think

Depending on the scope of the project, here are some surprisingly fast (approximate) construction times for common projects done by a licensed, professional contractor: the average room addition takes five weeks, a complete kitchen remodel 6-8 weeks, and a complete bathroom remodel 4-6 weeks.

Timing is everything

While the housing market is improving, values are not yet back to 2006 levels – which means holding onto your home until the market rebounds may make financial sense.

Solid investment

If planned and executed properly, you may recoup a large portion of your renovation expenses, particularly if you plan to stay in your home for a few years. Remodeling Magazine’s Cost Vs. Value 2009-2010 Southeast report puts recoup rates at 90% for attic bedrooms (mid-range project), 84.4% for basement remodels (mid-range project), 74.6% for a mid-range major kitchen renovation or 64.9% for an upscale version that includes features like granite countertops, 71.9% for a mid-range bathroom remodel or 64.3% for an more upscale bath renovation, and an impressive 146.8% for steel entry door replacement (mid-range project).

When considering those returns as well as all the issues involved in deciding whether to renovate, it’s vital to weigh what award-winning home improvement writer and author Kathy Price-Robinson wrote on her remodeling blog: “If you plan on living in your house for more than five years, you must factor in the quality of life increases as well as the payback on your investment. After all, is it a home where you live and shelter your family, or is it just an investment like a mutual fund?”

Saving Green by Going Green

Saving Some Green by Going GreenIt’s not often that you have the opportunity to do something good for someone else while protecting the environment and saving money at the same time. Yet by working with a remodeling contractor who has a strong working relationship with Habitat for Humanity, you really can accomplish all of those goals and more.

As part of its efforts to raise funds to build Habitat Homes, the organization created ReStores, which accept and then resell donated materials, with all of their profits benefitting build projects. Along with furniture, home décor and other household items, the ReStores accept new and used building materials, such as doors, windows, light fixtures, plumbing, trim, cabinets, appliances, flooring, insulation, etc.

How does that relate to a renovation project? Oftentimes, homeowners will choose to undertake a project like a kitchen renovation to improve the function, flow and appearance of their space. That sometimes entails replacing serviceable, yet outdated in appearance, appliances, cabinets and fixtures.

By working with a contractor who can coordinate the orderly deconstruction of the space and the subsequent donation of these elements to Habitat for Humanity, homeowners can do a good deed that reaps them considerable rewards.

Here’s how the process would work on a typical kitchen renovation. As we approach the demolition phase of an applicable project, we would work closely with Habitat for Humanity to coordinate deconstruction. Habitat would then team with us as a subcontractor, carrying the required Workers Compensation and Liability Insurance. Their team would carefully go in and remove existing kitchen cabinets, outdated but functional appliances, and other fixtures that would be appropriate for resale at one of the local Charlotte ReStores.

This benefits the homeowner in several ways. On an altruistic level, you are giving construction materials to people who need them and who otherwise may not be able to afford a necessary change. It also allows you to “go green” by repurposing these materials by getting them into the hands of someone who can use them instead of merely throwing them in a landfill.

On a financial level, many homeowners want to do something good for the environment, but fear that it will cost them more – this is actually a way to save green while going green. Here’s why: It offers a significant savings on the costs of demolition and disposal. (Just think of how many dumpster loads of materials you won’t have to pay to remove, depending on the size of the project.) Finally, it allows you as the homeowner to receive a tax-write-off for your charitable contribution (consult your accountant for specifics on your personal tax situation).

With so many benefits, working with a contractor who has a relationship with Habitat for Humanity can help you save dollars while making sense for the environment and people in need. “Last year, the Charlotte ReStores raised enough money to build 12 complete Habitat homes,” notes Donation Manager Tim Murphy.

Six Misconceptions about Granite

Six Misconceptions about GraniteOver the past decade or so, granite has emerged as a solid leader in kitchen and bathroom surfaces. Yet many people still have misconceptions about the material. Here are some common myths and a look at the hard facts about this natural product.

Granite is Expensive. Actually, granite has become one of the more cost-effective options among solid surfaces. Thanks to its popularity, supply has increased, bringing the cost down by $10 to $15 dollars a square foot over the past several years. Some of the newer, fabricated materials are pricier.

Granite is Difficult to Maintain. Some homeowners worry about spotting or discoloration, but those fears aren’t well grounded. According to the Marble Institute of America, granite just requires warm water, mild dishwashing liquid and a soft cloth to maintain. If you can use a spray bottle like one you’d use to apply glass cleaner, you can apply the latest generation of sealants.

Granite Locks You into a Certain Style. There are myriad colors, shades and tones in even a relatively plain piece of granite. As opposed to a solid-color surface material, these variations give you unprecedented design flexibility – i.e., when you tire of a wall or accessory color, simply pick a different shade in the same stone and redesign from there.

Granite Isn’t Green. Granite is a natural material, so it’s difficult to get closer to nature.

Granite Isn’t Durable. Granite has withstood the test of time. There’s a reason we say “as hard as a rock.” It is heat-resistant and won’t crack under the pressure of normal wear and tear.

Granite Isn’t a Solid Investment. The kitchen is the area where homeowners are likely to recoup the most money from renovations – nearly 85% according to CNNMoney.com. And when it comes to the changes homeowners are looking for in kitchen renovations, granite is definitely a material of choice. It’s expected in high-end homes and is becoming an assumption in moderately priced residences as well. In this challenging market, you want to give your home every edge when it comes to resale, and granite in the kitchen has become an indicator of a quality project in what many buyers view as the most important room in a house.

Lead Balloons

EPA Lead Safe CertifiedWhile most people are aware of the dangers that exposure to lead-based paint can pose – it effects children's brains and developing nervous systems, causing reduced IQ, learning disabilities and behavioral problems, and it can also lead to hypertension and high blood pressure in adults – what many homeowners may not realize is that a new Environmental Protection Agency rule may cause the issue to balloon.

The EPA’s new Lead Renovation, Repair, and Painting rule takes effect April 22, 2010, and requires that contractors working in a residence or facility built before 1978 where children are present must be an EPA Certified Renovator.

This rule was put into place after a four-year study determined that renovation work, including weatherization, window replacement, HVAC modifications, demolition of interior plaster walls, removal of exterior painted siding and trim, and drilling and sawing into painted wood and plaster, exposes both occupants and workers to the same kind of hazards as lead-paint abatement. That’s because, as the EPA notes, the most common manner in which people are exposed to lead is through lead contained in dust. (Just think of all the dust that demolition, drilling, sanding and drywalling stir up over the course of a renovation project!) As a result, all remodelers, painters, plumbers, HVAC technicians, etc. who work on homes or child-occupied facilities, such as schools and daycare centers, built before 1978 must have certified workers and their firm must be certified with the EPA. This rule applies to all projects (that homeowners do not do themselves) that disturb more than 6 square feet of a potentially lead contaminated surface inside a building or 20 square feet outside.

Here at Palmer Custom Builders, both Gary Palmer and lead carpenter Hunter Moxley hold this EPA certification. The training they received taught them how to effectively contain a work area to prevent the spread of possible contaminants into other areas of the home; proper construction and demolition methods designed to minimize the creation of dust; and EPA-approved clean-up methods designed to eliminate any lead residue.

As a homeowner, it’s vital that you check with your contractor to make certain that they’ve obtained this certification. Of course, there is the obvious reason – you want to be sure that your family is protected and that the contractor you hire takes his responsibility to care for them seriously. Yet it goes much deeper: the manner in which a contractor treats this certification is, in many ways, a reflection of their integrity that is likely to carry over into other aspects of how they run their business. In addition, not obtaining the certification before working on a project covered by this rule could cause a contractor to incur a stiff EPA civil fine of up to $32,500 per offense as well as an additional criminal fine of $32,500 plus jail time for knowing and willful violations of the requirements (in NC the fine is $750-$1,000 per day until resolved). Such hefty consequences may impact a contractor’s overall financial stability as well as their ability to complete and then stand behind your project. At Palmer Custom Builders, we are taking our responsibility to your family one step farther by testing any children residing in a home built before 1978 which has lead-based paint before we even begin work on the project. It’s just one more way we are striving to keep our customers safe.

Second Chances

Measure twice, cut once.Measure twice, cut once. Do it right the first time. Pay me now or pay me later. We’ve all heard these phrases before and know they resonate because of the common sense behind them. Yet when it comes to home renovation projects and particularly, minor repairs, homeowners sometimes throw logic and caution out the proverbial window in an effort to “get a good deal.”

Unfortunately, saving a dime by hiring a discount contractor who doesn’t know how to properly do the work ends up costing consumers millions each year, according to the Better Business Bureau. If you’ve watched HGTV’s latest sensation, Holmes on Homes, you’ve seen the Canadian contractor spend weeks trying to correct the damage done by supposedly “minor” repairs as well as major renovations that were performed incorrectly. Hundreds of square feet of tile that had to be ripped up and replaced due to improper underlayment, entire basement upfits torn down when plumbing pipes were installed by cutting through structural members, roofs removed due to improperly placed vents that caused water damage. The list goes on and on.

Here in Charlotte, we at Palmer Custom Builders often are called in to correct the substandard work of unlicensed handymen and the subsequent damage it causes. We’ve seen incorrectly constructed dormers cause unbelievable damage to exterior and interior walls, “minor” water leaks that result in entire floors having to be replaced, and dangerous wiring that presents a very real fire hazard.

It generally starts with a well-intentioned homeowner who is trying to save a few dollars of their hard-earned money, sometimes on a minor project. For example, one Charlotte homeowner we’ve since worked with initially hired a questionable contractor to install a closet in her bedroom. When that turned out okay, she had him build a downstairs closet as well. Things started to go downhill when she retained him to create a basement bathroom. There were some peculiarities with the plumbing license, but the homeowner really noticed that something was awry when she happened to look at the packaging of the water pump that was delivered to her home. “I was paying for a really good one, but the pump that was actually delivered to my house was not rated to be used below grade,” she relates. “I decided then and there that I wasn’t going to do this to my house, so I hired a licensed electrician and plumber. Unfortunately, I already had paid the first guy $3,000 for the downstairs bathroom.” Instead of refunding her money, “he worked it off by doing other projects, like my basement steps, but he wasn’t happy about what he had to do, and his work showed that.”  The homeowner then hired a second contractor the plumber recommended to complete the jobs that the first contractor didn’t finish, like building a basement staircase, but unfortunately, that didn’t happen. “He did a good job, but he just didn’t finish. He never came to do the final trim; he kept saying he was going to come back, but he never did,” the homeowner relates.

By the time she found, researched and hired Palmer Custom Builders, this homeowner had a list of about 60 items that needed to be corrected in her home. When we brought our team of professionals in to look at the house, the results of dealing with unlicensed people were apparent. A smoke detector had been completely sheetrocked over. When we looked into the electrical work, we discovered that a lamp cord had been used inside the ceiling, instead of the construction-grade interior wiring that code requires and common sense dictates. The wiring was so poorly thought-out that it actually required flipping two separate switches to get the light over the pool table to turn on. In the bathroom, fans were not vented to the outside, and GFIs were not in place. Structurally, a new wall wasn’t close to being straight. We corrected these and many other issues while completing the kitchen and master bath renovation the homeowner had desired – all in about eight and half weeks, as opposed to the over one year the first gentleman took. The result is that this homeowner now has a beautifully updated, functional home in which she feels comfortable raising her family.

“Now, I’m very happy with everything,” she relates. “In the end, you get what you pay for. If you want to pay a little bit, that’s just what you’ll get - a little bit. I learned that lesson three times. By the time I hired Palmer Custom Builders, I was more than willing to pay a little more for a professional job, but I also expected a little more for my money. The bottom line really is that you get what you pay for, and the difference between Palmer Custom Builders’ work and what had been done previously was the difference between night and day.”

Loans Put Renovations Within Reach

Loans put renovations within reachThe ebb and flow of the housing market over the past few years may have led us into uncharted waters, but one result has been a wave of people considering home renovation projects. Some homeowners that we at Palmer Custom Builders work with are in need of a change but have opted against selling, instead choosing to renovate their homes to improve their comfort and safety while protecting their longstanding investment. Others who are in the market for a home are eyeing existing home deals, hoping that updates will boost the value of their bargain while making it a more enjoyable place to live. We’ve helped many such homeowners renovate poorly functioning kitchens and baths, finish un- or under-utilized space to create beautiful living areas, bring safety issues up to code, and make much-needed repairs. Yet we’ve also heard of many people in both situations who are mistakenly crestfallen when they hear rumors about other homeowners who are unable to secure renovation financing.

The truth is that whether your project is large or small, financing is still available for qualified buyers and homeowners, but finding the right financing package is more important than ever.

Jack Snypes, a Renovation Specialist for Wells Fargo Home Mortgage in Charlotte, N.C., said there’s always a need for basic home improvements because of the aging U.S. housing stock. “And, when it comes to purchasing a home, renovation loans give buyers options when considering houses that aren’t perfect,” he said. “At an average age of more than 35 years, the nation’s housing stock is in need of improvements and repair, so there is demand for mortgage products that address the needs of buyers who are looking at homes that need TLC.”

To make it easier for lenders to offer renovation loans, the federal government has several programs they can turn to. (Talk with your lender to see if your home qualifies for these or other programs.) The Federal Housing Administration’s (FHA) Streamlined 203(k) is one of the more popular renovation loan programs. It permits homebuyers to finance as much as an additional $35,000 into their mortgage to improve or upgrade a home before they move in. The loan is generally used to update or improve a house or condominium needing essential repairs, such as new wiring or plumbing, weatherization, lead-based paint stabilization or abatement, roof replacement, kitchen and bath renovation or space reconfiguring, or interior upfits.

Other renovation programs like the Fannie Mae HomeStyle® Renovation Mortgage offer higher loan limits for more extensive projects. The HomeStyle Renovation Mortgage allows borrowers to finance improvements of up to 50% of the as-completed value of the home with a first mortgage, while offering lower rates than second mortgages, home equity lines, or credit card debt. Another plus is that this loan allows homeowners to finance “luxury” items, such as swimming pools, major additions, sun rooms and outdoor living spaces.

“Renovation loans are great tools for homeowners and important for community revitalization,” Snypes said. “Investing in a home contributes to the financial well-being of a community, because the homeowners are preventing older homes from deteriorating and falling out of the housing stock.”

When you are working with a qualified contractor such as Palmer Custom Builders, these loans also can help turn a diamond in the rough into the sparkling heart of your family’s home life.