Here are five steps to developing a great relationship with a remodeling contractor.
1. Let the contractor know if you are ready to remodel or just kicking the tires. Gary Palmer, a Charlotte, N.C.-based general contractor, says seeking multiple bids is fine, but don’t waste his or her time by letting the bidding process drag on for weeks.
2. Do your homework. Before seeking bids, develop two files. One should include information, including photos, of what you like. The other should include a list of what you don’t like.
3. Listen to the experts. A good contractor can tell you whether the project is feasible and what the pay off will be.
4. Communicate your budget. Let the contractor know up front how much money you intend to spend.
5. Be realistic and patient. Every remodeling project is messy and all of them are going to be frustrating somewhere along the way.
Source: Charlotte Observer, Barbara S. Russell (10/23/2010)
Real estate brokers marketing the use of a preferred lender, title company, or other settlement service provider should take care to avoid RESPA violations that can be incurred when marketing fees exceed the reasonable value of the services performed.
These services include signs inside or outside the sales office and homes up for sale; e-mail or direct mail campaigns; banner ads and preferred partner links on the broker's and agents' Web sites; and the use of the broker's name and logo in preferred partner marketing materials.
Brokers should request that the preferred partner use an independent marketing expert or system to value the marketing fee and ensure that service and activity levels are reviewed regularly.
Source: RISMedia, Mark L. Meyer (10/18/2010)
It’s important to pay attention to all the information you have available to you because it will help you avoid unpleasant surprises down the road.
Be sure to ask questions about the property before buying. Some questions you might want to ask the current owner and/or yourself include:
What kind of development plans are in the works for this neighborhood?
Is there a chance that a highway will be built in the home’s backyard five years from now?
Is this street likely to become a major street or a popular rush-hour shortcut?
All real estate agents work by an ethical rule that says they must act in the best interests of both the home seller and the home buyer. However, you cannot truly guarantee that your best interests are involved unless you have an agent on your side during the buying process. After all, the seller’s agent is there to represent the seller, not the buyer.
NEXT Mistake 10: Not thinking about the future.
Finding the perfect house may seem easy, but if you’re on a budget, you may not be able to afford that dream home. So, why not find a lower-quality home and, over the years, help it reach its true potential? Finding a house you can add value to allows you move up the property ladder.
Improving a lower-quality home brings many benefits. First, you most likely have the option to sell it for more than you spent on it. Secondly, you have saved money to live in a home that, once upgraded, is just as good as or better than the expensive homes. And finally, you have something to be proud of – you transformed a decent home into a wonderful home through your own work or work for which you were responsible.
NEXT Mistake 9: Not hiring your own agent.
Although you shouldn’t let cosmetic, surface imperfections steer you away from a home, you shouldn’t ignore large problems that could cost you big time down the road. Always be sure to inspect the home and understand what shape the house is in before closing on a sale.
Bob Murphy is a home inspector
Once you’ve fallen in love with a house, It can be easy to write off large problems as petty. However, try to keep your emotions and feelings in check during inspection. If you let your emotions get the best of you during inspection, you may regret it when a major problem occurs down the road and you may end up paying more while getting less.
NEXT Mistake 8: Being swept away.
Remember: it’s easier to make small changes through a contractor or by doing it yourself than it is to have the current home owner change things. If you find a home that’s perfect for you except for some ugly wallpaper or chipped paint, don’t automatically throw it out the window. It’s much cheaper to make changes yourself, whether that means hiring a contractor or actually making home repairs yourself.
If the current home owner does the upgrades for you, the home’s value increases and you will end up paying more in the long run. Therefore, don’t necessarily look for the most beautiful home, but rather seek the home that’s structurally sound and that has the most potential. Maintaining a visionary’s attitude when buying a home can save you a lot of money in the long run.
NEXT Mistake 7: Neglecting to inspect.
While it’s important to have an open mind while searching for a house, it’s also important to know what you absolutely need and what you could give up.
The Eclipse is a pet-friendly condominium community.
For instance, if you know you want to have a child in a couple years, avoid buying a one-room home. If having a child is something you value, make sure you have room in your new house for your family to grow. No matter what your values, determine what’s most important to figure out what you can and cannot compromise.
NEXT Mistake 6: Lacking vision.
While you should narrow down what you want and you list features most important to you, don’t be so inflexible that you make it impossible to find a home. If you’re too picky, you may have to continue renting when you could own a home. Be willing to compromise on some of the less important things that can be changed or ameliorated later, like outdated décor.
However, it’s vital to remember what’s most important to you. If you really can’t find something that has what you need and want, it may be best to rent for a few more years until something new comes along or until you’ve saved up more money to afford your perfect home.
NEXT Mistake 5: Compromising on the important things.
