12 tips for hiring a remodeling contractor

My husband and I are in the beginning stages of a remodel so I thought I would share our experience and any tips or useful information I come across along the way. Right now we are just coming up with an idea of what we want done and are starting to get quotes from contractors. My background in architecture has been (and will continue to be) very helpful in this process, but the below list (taken from Realtor Magazine) has a lot of good tips which I can say from experience will come in handy!

1. Get at least three written estimates.
2. Check references. If possible, view earlier jobs the contractor completed.
3. Check with the local Chamber of Commerce or Better Business Bureau for complaints.
4. Be sure the contract states exactly what is to be done and how change orders will be handled.
5. Make as small of a down payment as possible so you won’t lose a lot if the contractor fails to complete the job.
6. Be sure that the contractor has the necessary permits, licenses, and insurance.
7. Check that the contract states when the work will be completed and what recourse you have if it isn’t. Also, remember that in many instances you can cancel a contract within three business days of signing it.
8. Ask if the contractor’s workers will do the entire job or whether subcontractors will be involved too.
9. Get the contractor to indemnify you if work does not meet any local building codes or regulations.
10. Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage.
11. Guarantee that the materials that will be used meet your specifications.
12. Don’t make the final payment until you’re satisfied with the work.

Of course, something I am asked quite a bit (and something that is at the forefront of my own mind as we get ready to embark on this remodel) is what will this do for re-sale value of the house down the road. Remodeling Magazine, in conjunction with Realtor Magazine, does an annual "Cost vs. Value" report that provides some good insight on this very subject!

Available Affordable Housing Initiatives & Programs In Metro Atlanta

Atlanta

Homebuyer Programs – through local nonprofit organizations. 404/330-6390.

Mortgage Assistance Program – available for all borrowers in Atlanta who qualify for a loan under the Home Atlanta program. Downpayment and closing cost assistance up to 5% of the purchase price. 404/614-8320.

Atlanta Empowerment Zone Program – mortgage assistance grant of $4,000 - $20,000, deferred loan recorded as subordinate lien. Minimum tenancy ten years. 404/330-6390.

Homebuyer education programs:

• Community Housing Resource Center: 404/624-1111
• Atlanta Center for Homeownership: 404/588-3700
• Fulton Atlanta Community Action Authority: 404/810-0090
• Atlanta Urban League: 404/659-1150
• Consumer Credit Counseling Service, Atlanta: 404/527-7630

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Clayton County

First Time Homebuyers Down Payment Assistance Program - 770/478-7282.
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Cobb County

First Home Program – a “soft” second mortgage, $7,500 maximum. 770/528-4630.

Homebuyer education program: Cobb Housing, Inc. – 770/429-4400
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Dekalb County

Downpayment Assistance Program – provides 50% of downpayment up to $2,525 from CDBG Program funds. 404/286-3308.

Single Family Affordable Housing Program – partnership with Dekalb Housing Authority and/or CHDO. 404/286-3308.

Homebuyer education programs:

• Dekalb/Fulton Housing Counseling Center – 404/659-6744

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Fulton County

Home Ownership Assistance Program (HOAP) – for first time homebuyers. Up to $5,000 for downpayment assistance with low or deferred monthly payment, and $2,500 grant for closing cost assistance. 404/730-8083

American Dream Downpayment Initiative (ADDI) – upfront downpayment and closing cost assistance compliments HOAP program. 404/730-8083
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Gwinnett County

HOME Stretch Loan Program – first time homebuyers provided with downpayment, closing costs and prepaid assistance funds. 678/808-4477

Homebuyer education program:

• Gwinnett Housing Resource Partnership – 770/448-0702

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Other (Georgia)

The Georgia Dream Homeownership Program makes purchasing a home more affordable for low-to-moderate income families and individuals by offering fixed, low-interest rate first and second mortgages loans and down payment assistance. This program is administered by the Georgia Department of Community Affairs. 404/679-4847

United Way: Individual Development Accounts (IDA) – allows accumulated savings/down payment funds, matching 4 to 1. 404/614-1000.

Emergency Mortgage Assistance – these resources help homeowners facing a temporary financial hardship to make their mortgage payment. Given that funds are limited and the need is great, these organizations may offer referrals when unable to provide direct financial assistance.

• Clayton County Community Service Authority – 404/363-0575
• Dekalb Economic Opportunity Authority – 404/929-2500
• Decatur Co-op Ministry – 404/377-5365
• Fulton Atlanta Community Action Authority – 404/810-0090
• Rockdale Economic Opportunity Authority – 770/760-8750
• Gwinnett Economic Opportunity Authority – 770/822-2860
• Norcross Co-op Ministry (Gwinnett County) – 770/263-8268
  

Buy a HUD home with only $100 down!

This is a little known program that can work well for qualified buyers....check it out!

HOPE FOR HOMEOWNERSHIP: HUD CONTINUES TO OFFER

DOWN PAYMENT ‘ASSISTANCE’

ATLANTA, Ga. – In a real estate market plagued by setback after setback -- and most recently, the termination of most down payment assistance programs -- the U.S. Department of Housing and Urban Development (HUD) in Georgia offers hope for homeownership, continuing to offer homes for sale with an option of a $100 down payment.

Amidst the collapse of other down payment programs, the “$100 Down Incentive,” which HUD unveiled in October 2007 as a means to promote and increase homeownership, remains available to owner-occupant buyers who purchase a HUD-owned home with FHA financing.

There are currently more than 2,000 HUD-owned homes for sale in Georgia, varying the gamut when it comes to price, location and condition. Any of these homes which are eligible for FHA financing are eligible for the $100 down program incentive. In such sales, the $100 down payment takes the place of the standard 3% down payment required by FHA.

Anyone who is able to obtain financing is able to purchase a HUD-owned home by having a HUD-registered agent submit an offer via HUD’s electronic bidding system. The only buyer-requirement for those who wish to take advantage of the incentive is that the buyer must live in the home purchased as his/her primary residence for at least one year.

For more information about the HUD Homes Sales Process, the $100 down payment incentive or to search for HUD-owned homes currently available for sale, visit www.hud.gov or www.hudpemco.com.

Happy Clients: Liz

I have been meaning to do this series for a while now and have been woefully behind. My Happy Clients series is meant to highlight the various fabulous people I have worked with thus far and tell a little of their story. For the first in this series, I thought it would be most appropriate to highlight my very first client, Liz.

Liz & I at her housewarming party

Liz was a young first-time buyer that was referred to me through my horseback riding trainer. She is a very cool chic with a great, spunky personality. She is also incredibly responsible and mature financially speaking for her age. Often times my younger clients have mounds of credit card debt and a car they cannot really afford that they bought when they got their first real job out of college. As common as that scenario is, it also unfortunately can make it difficult to purchase a home. However, Liz was a very refreshing breath of fresh air and had followed the advice her parents instilled in her to a T....don't buy something you can't afford. Novel, I know!

Liz was looking for a condo or townhome in the Sandy Springs area, close to her social circle but also an easy drive to her job. With the traffic in Atlanta, that second part was key. Also, being the fiscally responsible person that she is, we had a very definite price range to work within. We looked at several condo developments and two townhome developments and quickly narrowed it down to one condo and two townhomes. I walked her through the pros & cons of each, created a spreadsheet showing recent comparables, tallied up the difference in monthly payments due to things like taxes and HOA fees, did some analysis on resale values, and talked through any concerns she had.

At the end she decided to go with a condo in the Laurel Grove complex, a Frank Lloyd Wright inspired development that offers very unique & spacious units that are flooded with natural light. I helped her understand how, in the condo market in Atlanta, it was SO important to have something unique to offer with regards to re-sale values. There are so many apartment conversions on the market now that they are incredibly difficult to sell and the chances of doing much more than breaking even are pretty slim, so her choice of going with something that will stand out from the crowd when she goes to sell it was critical.

Liz has been in her new place for about a year now and loves it! We go to lunch together every month and she has continued to enjoy not only her unit, but the amenities like the pool and location as well. I love helping people to find that special home, and Liz is no exception....and it always means a lot to me to make a good friend in the process!

When I decided that I wanted to finally stop renting and buy my first place I knew

absolutely nothing about how to go about it. Alix took me through it step by step and explained everything in ways that made me understand what was going on as well as why. Her commitment was to find the best place for my needs as well as my budget, while still making sure I was investing wisely and thinking about long term as opposed to the right now. Her attention to detail and customer focus was what made it easy to put my full trust in her opinion and guidance throughout the entire process. I trusted her with helping me find my first home, and she delivered 110%, not only did I find a great place I also have a great friend. - Liz B.

Down Payment Assistance may have new life

I have had a big surge of business in the past few weeks as people rush to try to close on a home before DPA goes away on October 1st. That has been great (for me) but not-so-great for the many buyers out there who could really benefit from a DPA program, particularly first time buyers. I am happy to report that it looks like their may be a ressurection of some sort of DPA in the near future! So if you were hoping to take advantage of such a program but were not able to get in under the October 1st deadline, don't despair! There may be hope yet!

Daily Briefing for September 17, 2008 From National Mortgage News.

House Panel Okays DPA Bill

The House Financial Services Committee has approved a bill that would allow nonprofit housing groups to continue to arrange downpayment assistance on Federal Housing Administration loans and give the FHA some latitude in pricing mortgage insurance premiums based on risk.

BILL H.R. 6694 passed committee hearing yesterday – on its way to the house floor for a final vote – could be this Friday. If approved, risk based pricing will be attached to new guidelines.

SOLD!!!!

I sold this great house in 42 days and for 101% of the asking price!!!!!

How did I do it? Great staging and excellent, premium marketing. I actually had another agent take the time to let me know that, after 30+ years in the business, he thought my marketing for this home was by far the best he had ever seen. That meant a lot to me and reaffirmed my own belief in my marketing system. Of course, it also helps that I had excellent clients that really listened to my suggestions for how to stage the house and what price point we needed to be at. Makes all the difference!