The first step in adding value to your home is hiring the right contractor to complete the project. These guidelines will help you make the right choices to protect your investment.
Send a query to an e-mail group that covers your neighborhood, or check watchdog Web sites, such as AngiesList.com. Be aware that a contractor's references will showcase the best work, not the goofs.
Consider only licensed contractors or members of a professional group, such as the National Association of the Remodeling Industry. If things go wrong, you'll have venues where you can air a grievance, and perhaps tap a homeowners-reimbursement fund. Find your state's rules at www.contractors-license.org.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Spell out the details. Contracts should specify a start date, a completion date and a payment schedule -- for example, 10% down, 10% to 15% after each major milestone and the final 10% only upon satisfactory completion of the project.
Be excruciatingly exact. Instead of instructing contractors to "install cabinets," try "install 42-inch, country-style oak kitchen cabinets per plan, manufactured by company XYZ, model ABC, with finish EFG and matching 3-inch dentil crown molding."
Ask for receipts after each subcontractor is paid, or write checks jointly to the contractor and subcontractors. Or hire a third party, such as the bank that's administering your loan, to make the payments on your behalf.
NEXT: Protect Your Home and Valuables
JUMP TO:
Finance
Credit
Retirement
Investing
-
The Best Aerospace and Defense ETFs to BuyThe best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
Walmart Takes on Prime Day With Competing July Deals EventWalmart is launching its own multi-day sales event to rival Amazon Prime Day — and it could be a smart time to shop, even if you're not a member.
-
How to Search For Foreclosures Near You: Best Websites for ListingsMaking Your Money Last Searching for a foreclosed home? These top-rated foreclosure websites — including free, paid and government options — can help you find listings near you.
-
Luxury Home Prices Rise as the Rich Dodge High Mortgage RatesLuxury home prices rose 9% to the highest third-quarter level on record, Redfin reports, growing nearly three times faster than non-luxury prices.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to Shop for a Low Mortgage RateBecoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.
-
Looking to Relocate? Plan for Climate Changebuying a home Extreme weather events are on the rise. If you’re moving, make sure your new home is protected from climate change disasters.
-
Retirees, A Healthy Condo Has a Flush Reserve FundSmart Buying Reserve funds for a third of homeowner and condo associations have insufficient cash, experts say. Here are some cautionary steps you should take.
-
Cash Home Buyers: New Services Offer Help Making All-Cash OffersBecoming a Homeowner Some firms help home buyers make all-cash offers on homes. Weigh the fees before you sign on.
-
Home Sale Prices in the 50 Largest Metro AreasBecoming a Homeowner What’s happening in the market where you live?
