Thinking About Remodeling ?
Dont Fall Into "The Money Pit"

One of my favorite movies is “The Money Pit” with Tom Hanks and Shelley Long. They play newlyweds that want to buy a house but don’t have much money. When they stumble on a beautiful old mansion that is selling for an unbelievably low price they buy what they thought was their dream house.

As soon as they move in the house starts falling apart and they have no choice but to remodel the entire house from top to bottom and the remainder of this hilarious movie is devoted to this process. From working with the indifferent contractor to putting up with no water or even stairs this movie is an extreme example of what could happen during a remodeling and watching this movie reinforces the facts that a home remodeling project can lead to high family stress levels and in extreme cases divorce.

Fortunately, this is one example where for the most part life does not imitate art and most people that are thinking of remodeling their home will not have anywhere near the experience they did. There are, however, lessons to be learned and I think it would be a wise idea to watch this movie before you commit to any major remodeling plans for your house.

As you are most likely not in a situation where a complete overhaul is required immediately you will have time to decide exactly what it is you want to accomplish. Do you want that bathroom retreat with the Jacuzzi tub? Maybe you would like to finish off the basement and have a great place for parties? Is the family outgrowing the house and you need to add another bedroom?

These are all questions you need to answer up front. Write down on paper what it is you want and sketch it out so you have something to work from. There is some great inexpensive software available that you can use on your PC to design just about anything from building a new house to adding an additional room.

Unless you plan on doing the work yourself once you have your plan you need to find a reliable contractor. This is much easier said than done and you would be well advised to talk to at least three contractors before picking one. Ask for references and please do check them out. See if you can inspect some previous work they have done and check to see if they are in good standing with the Better Business Bureau. Ask family, friends and neighbors if they can recommend someone they may have used for past projects.

Get a rough idea of what the project will cost from each contractor. If it’s more than you expected you might be able to cut corners a bit by using less expensive materials or maybe downsizing the project a bit. Be wary of any contractor that says they can do the job for an amount that is unrealistically lower than your other bids.

Now you can set a realistic budget that you must stick to. Be sure and have a little extra built in for the inevitable extras that will crop up. Make sure you get everything in writing in case you have problems during the project. Have everything spelled out as to what will happen, who will do it and when and don’t be afraid to consult with a lawyer if a large sum of money is involved.

If you need to finance the project with a second mortgage or home equity loan be sure you are not overextending yourself financially and think long and hard about whether you really need to remodel. Maybe it is something that you can put off until you have saved up a bit more money thus saving you some financing costs.

In the end, if you plan everything up front, pick a good contractor, budget wisely and get everything in writing your remodeling project should come off without a hitch and you will be very happy with the results.

By Mike Tylor