How to Plan a Remodel

Remodeling is often a costly and stressful experience. But it can also be rewarding, offering a sense of accomplishment, the joy of a newly designed space and an increase in your home's market value. Follow these steps, keep your eyes on the prize and you'll see it through.

Instructions

Difficulty: Moderately challenging

Designing and planning

1. Visit model homes with your camera. Watch decorating programs on television. Prowl home decor stores; pore over remodeling books, magazines and Web sites to get a feel for what you like and what's in fashion. Collect ideas in a folder or binder.
2. Write down everything you'd like to include in your remodel, no matter how outrageous. Divide your list into three categories: must do, want to do and would like to do.
3. Take measurements of the rooms you plan to remodel and draw a rough floor plan. Also take photos from many different angles.
4. Consider the resale value of your house. Overimprove your house, especially in comparison to the neighborhood, and you won't recoup your money when you sell. Kitchen and bathroom remodels typically offer the highest payback; finishing a basement and adding a pool the lowest. A trusted real estate agent can help you decide what projects are worth their ticket price.
5. Decide roughly how much you want to spend. Building costs vary widely from region to region. Your best information may come from friends and neighbors who have remodeled recently. Consult with a banker or a mortgage broker early in the process if your project will require financing. See 231 Organize a Loan Application and 226 Set Up a Budget.
6. Identify architects or designers who are appropriate for your project. Ask friends, neighbors and the building department for references. Call and describe your project in general terms and ask about their design philosophy. Ask what kinds of projects they specialize in. Another option is to hire a design-build contractor, who can take a project through from concept to construction.
7. Narrow down your list of designers and architects to a handful, and schedule interviews at their offices (ask if they charge for this). Show them your idea file, describe what you have in mind and tell them what you plan to spend. View examples of their work, check their accreditations and get names and phone numbers of former clients. Listen carefully and take good notes.
8. Ask the architect or builder you're considering if they have done projects similar to yours. If so, do your best to check them out as that will give you a first-hand view of a comparable remodel. Call the homeowners and ask how the work went and if they have any positive or negative comments about how the project went.

Working with contractors

9. Identify several contractors. Confirm that they and their subcontractors are licensed and bonded. Describe your project and ask if they've handled comparable jobs in the past year. Check their availability for your intended time frame and discuss your budget.
10. Narrow the field to those available contractors who impressed you most. Check out their record with local home building organizations, contractor associations or your state's licensing board. Contact the Better Business Bureau (bbb.org) to learn if any complaints have been lodged against the contractor.
11. Ask for names and numbers of current and former customers. Interview them about each contractor's strengths and weaknesses, and ask how the job went. Was the quality of the work and materials what you expected? Was the project completed on time and within budget? During work, did the contractor keep you informed? Did the crew and subcontractors treat your property and family respectfully? Would you hire him or her again?
12. Solicit at least two but preferably three competitive bids (in writing). Contractors will use the architect's blueprints or construction documents to make an accurate bid. If there are significant differences between bids, ask why. A lowball bid won't end up costing the least if you have to replace poor-quality materials or shoddy workmanship.
13. Make sure your contract specifies that the contractor is responsible for building permits, inspections and clearances from the local building department. The contract should also specify a payment schedule and finance charges, if they apply. It should include a start and completion date, set penalties for any delays as well as details on how any cost overruns will be handled.
14. Keep track of subcontractors whenever possible. Get their names and note when they work and what they do.

After construction

15. Make sure all inspections and clearances are complete before you write the final check.
16. Review your homeowner's insurance to make sure you have adequate replacement coverage for your improvements.
17. File any necessary paperwork with your local property tax authority.

Tips & Warnings

• One online tool for estimating remodeling costs can be found at Contractors.com (click on Cost Estimator). But remember that building costs vary widely from region to region.
• Make sure your architect or designer enlists the aid of an engineer if your project involves removing walls, adding a second story or altering your home's foundation.
• Many contractors, even good ones, have complaints filed against them. If you like a contractor but see complaints in his or her file, ask for an explanation.
• Designers often aren't licensed, so their services may cost less than an architect's, but they may not bring as much training, experience or aesthetic sensibility to your project.
• Consider energy efficiency in your plans. Some states and utilities can provide tax breaks, rebates or lowinterest loans for energysaving work.
• Include a clause in your contract (if your project requires that you take out a loan) that specifies the contract is valid only if you obtain financing at a particular interest rate.
• Look for a good fit. Ask if you will be treated as a partner in the project. Having a strong rapport and good communication with the architect and contractor will have a tremendous impact on your overall job satisfaction.
• Take pictures at every stage of the work. Document (take photos and measurements) where water and sewer pipes, electrical conduits and other infrastructure are located when walls are open.
• Run if a builder suggests that you serve as your own general contractor or "owner/builder." Under this arrangement you are responsible for the overall job, which may include state and federal taxes, workers' compensation, and other legal liabilities. It may be illegal.
• Any changes you decide to make to your plans along the way (typically called a change order) need to be documented in order to ensure that your contractor takes care of them. Whenever you make a decision, be sure that either you or your contractor puts it in writing and signs it. Verbal agreements to fix something offer no legal protection or proof that the request was ever made.

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