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Remodeling your home can be quite the adventure; however, remodeling your home can be quite the nightmare as well. Below are some topics to read and give guidance when considering a remodel project whether large or small. This does not promise all your remodel projects will turn out to be the great adventure you had hoped, but you will at least go into a project with somewhat of an idea to look for when considering a remodel project and especially when looking for a professional experienced Remodeling Contractor to do the job right with as little stress as possible for you and your family.

Useful articles

How to find a professional remodeler
Caring for your carpet
Choosing a remodeler
Heat your home safely
Home safety basics
Financing your remodeling project
Frequently asked questions about green remodeling
Frequently asked questions about remodeling
Insuring your home
Mortgage basics
Natural disaster preparations
Top 10 energy wasters and saver
Top 10 tips for a smooth remodel
Understanding your remodeling contract

Check for a Contractor license
Mold tips

How to find a professional remodeler

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Caring for your carpet

(This content was written by the National Association of Home Builders. For more information, please visit their website at www.nahb.com)

Discolored areas on carpet and walls have been reported to the NAHB Research Center’s ToolBase hotline and other sources from locations throughout the United States. Discoloration is characterized by localized darkening of the original color of walls, carpet and other interior surfaces. Carpet discoloration often occurs at the perimeter of the room and along the base of doors. The discoloration of walls can be diffuse, or appear as “ghosting” – a darkened line along the studs in the walls.

Discoloration is caused by accumulation of small particles that are present in the air of homes. Discoloration usually cannot be removed by vacuuming or washing. However, professional cleaning equipment with enzyme based agents has been shown to be effective at removal on some cases of carpet soiling.

Identification of the particles that cause discoloration is limited and requires expensive laboratory testing. Researchers of the discoloration problem have identified compounds typically found indoors and outside of homes. Examples include particles from tobacco smoke, candle smoke, wood-burning smoke; from dust, such as drywall dust from construction, normal house dust, and dust from household projects such as sanding, grinding, and finishing; and air-borne particles such as pollution, organic material, automotive exhaust, and road dust.

Suspected Causes
The current thinking is that there is not a single cause of discoloration, but rather a combination of conditions that can hasten the discoloration process and visually accentuate the presence of accumulated particles. Conditions associated with carpet discoloration include particle source strength, air movement, attraction mechanisms, and cleaning practices. These variables described in more detail help explain why discoloration occur occasionally and randomly.

First, there has to be some mechanism to move the particles to a location where they will be concentrated enough to become visible. Air movement and temperature gradients are present in every home to some degree. These mechanisms cause attraction of airborne particles to exterior walls or leakage points in the home. When particles are drawn to a leakage path, for example at the base of a wall, the carpet can act as a filter that retains the particles. Over time the particles build up and become visible. Ghosting on the walls, where the studs show as a shadow, can happen when there is a difference in wall surface temperature between the stud and the wall cavity areas. A wall’s thermal characteristics, construction practices, and climatic conditions influence wall surface temperatures.

Second, a light color background makes discoloration more visible. Deposition of particles occurs everywhere and is detectable earlier and discoloration is more dramatic with lighter color carpet and walls.

Third, cleaning patterns, while themselves probably a less important variable than the other suspected mechanisms, are also believed to be a contributing factor. Poor cleaning practices will result in more available particles to contribute to discoloration.

Understanding the suspected causes of carpet discoloration is important in deciding how to fix an existing problem or how to prevent one in a home you are building or planning to build. Except as noted below for extreme cases of ghosting caused by temperature differences (usually associated with steel framing that was not built in accordance with industry recommendations for a thermal break on outside walls), the recommendations for carpet discoloration will also address wall discoloration.

Prevention in New Homes
Discoloration of carpets and walls is likely occurring in all homes, but the risk of a serious case may not warrant significant changes in conventional practice to prevent it. However, there are some steps that can be taken to address the suspected causes of discoloration.

• Minimize particle sources by the home owner:
• Eliminate or reduce tobacco smoking from the home;
• Eliminate or reduce candle burning in the home;
• Minimize the use of solid fuel burning appliances, since they have the potential to produce soot.
• Avoid automotive refinishing, woodworking, and other dust producing activities.
• Minimize running of automobiles in attached garages.
• Use fan hoods during cooking.
• Clean and vacuum on a regular basis. Use crevice tools to clean against baseboards.
• Replace HVAC filters on a regular basis.

Minimize particle source by design or during construction:

• Construct a tight duct system to minimize whole-house or local pressurization caused by unintentional leaks.
• Change the filter on the furnace prior to occupancy of the home. Don’t use the HVAC system during construction activities that generate significant dust or particles.
• Use qualified contractors to install vented fuel-burning appliances, wood stoves, and fireplaces; and verify proper draft at the flue.
• Minimize air leakage from the garage to the home by sealing leakage points through walls or ceilings. Weather-strip doors and seal return ducts in the garage.

Reduce visibility of discoloration:

• There really is only one approach to addressing this variable- educate buyer’s on the benefit of darker colors. Let them know that discoloration is rare, but it can occur and is impossible to predict. They increase the risk of encountering the problem when they insist on a light-colored carpet.
• For walls, the option of a darker color is not usually an option. Focusing on source reduction and leakage paths is more likely to be effective on walls.

Avoid mechanisms that draw particles to walls or leakage points:

• In the case of steel framing on exterior walls, provide a thermal break/continuous insulation across the exterior of studs to reduce the temperature gradient that causes ghosting on exterior walls.
• Minimize airflow through carpet caused by HVAC operation by

• Undercutting doors or using a non-carpeted threshold in rooms that do not have a separate return duct.
• Building as tight a duct system as feasible

• Avoid leakage routes that can contribute to discoloration. It is especially important to seal bottom plates adjacent to carpeted areas with sealant or adhesives. Other areas for sealing including the intersection of stair treads and risers.

Fixing an Existing Discoloration Problem
After discoloration occurs, there are several repairs, change of occupancy patterns, and cleaning methods that can be implemented. Steps that have been effective in test homes are:

• Removing the carpet and applying sealant at the bottom of the baseboard or at the bottom of the wall at interior walls and stairs;
• Undercutting doors;
• Adjusting registers and furnace to reduce room-to-room air pressure difference;
• Changing of occupancy habits, such as reducing candle burning, reducing smoking, and reducing dust-creating activities.

Even if these steps reduce or eliminate the discoloration, the original discoloration will still present a problem. If the discoloration is severe, replacement of carpets may be the only option. A darker carpet may sufficiently address the problem.

Likewise, repainting of walls that exhibit ghosting will likely be necessary. For less-severe problems, cleaning may be an option.

For carpet, a professional carpet cleaning service using a deep extraction machine with a dry enzyme-based powder has been successful in removing the discoloration in some cases. Spot cleaning can be problematic as well by causing additional color variation.

Keep in mind that replacing or cleaning carpets and repainting walls will only be successful in the long-term if the underlying particle sources and attraction mechanisms are mitigated.

For more information of carpet and wall discoloration, contact the ToolBase Hotline at 800-898-2842.

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Choosing a remodeler

(This content was written by the National Association of Home Builders. For more information, please visit their website at www.nahb.com)

Finding the remodeler who’s right for you is not as simple as picking up the Yellow Pages. On a big project, you may be working closely with this individual for several months, so you want to do everything possible to ensure that you make the right decision.

Here are some good places to start your search:

• Seek referrals from friends, family, neighbors, co-workers, and others who have had remodeling work done.
• Talk to independent trade contractors, building materials suppliers, architects, engineers, home inspectors, and local lenders.
• Look for professional certifications like Certified Graduate Remodelor (CGR) and Certified Aging in Place Specialist.
• Contact trade associations such as your area’s local council or use our Directory of Professional Remodelers!

Once you have identified some strong candidates, do even more checking to ensure that these are the kinds of remodelers with whom you would like to do business.

Contact Local Consumer Protection Agencies
Call your local or state consumer protection agency and the Better Business Bureau to find out if there are any unresolved complaints filed against the remodeler. You should also contact your state’s contractor licensing agency and state and local building inspectors to verify that the remodeler has the appropriate license(s) and a clean record.

Interview Previous or Present Customers
An essential step in your decision-making process is to check a remodeler’s references. Ask for the names and phone numbers of current and former customers; then take the time to interview them (preferably in their homes so that you can take a look at the remodeler’s work).

Some of the questions to ask include:

• Would you hire this company again?
• Did the remodeler maintain a neat work site?
• Did the crew show up on time? Were you pleased with their work style?
• Was your project completed on time and within the budget?
• Was the remodeler easy to talk to and did he or she keep you informed as the job progressed?

The Right Fit
Remodeling is a very personal process. The remodeler you hire will be part of your home life for several weeks or months, so it’s important to make sure that your personalities work well together. If, for example, you want to know every detail as the project progresses, you probably won’t be happy with a remodeler given to one-word answers.

The bottom line is: Do you feel comfortable with this individual? A strong rapport and close communication with your remodeler will help make any job go well.

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Heat your home safely

(This content was written by the National Association of Home Builders. For more information, please visit their website at www.nahb.com)

Natural gas is commonly used in homes as an energy source. And like any energy source, it must be used correctly to be efficient and safe.

Natural gas is a versatile, clean-burning fuel. It is often used to heat your home, cook food, heat water to bathe with, dry clothes, and even start the fire in the fireplace. In its natural state, it is a non-toxic, colorless, tasteless and odorless gas. The “smell” you recognize as natural gas odor is added so you will know if there is a gas leak in your home.

The gas may escape from faulty appliances, loose connections, service lines inside or outside your home, or from the gas main. If you ever smell gas, take these precautions immediately:

1. Do not light any matches or turn any electrical switches on or off your home.
2. Ventilate the room or home by opening doors and windows.
3. If the odor is very strong or you hear a hissing noise, leave your home immediately. Go to a neighbor’s home and call the fire department.

Now is also the time to inspect your furnace or boiler. A properly maintained furnace runs more efficiently and saves you money.

Follow the manufacturer’s instructions to perform the inspection. If the instructions are missing, follow this checklist for inspecting your furnace or boiler:

1. Make sure the unit is free of dust, rust or any other signs of corrosion. Make sure the space around it is clear of paint, solvents, rags, paper or any other combustible products.
2. Check the air filter regularly, every one to two months. Replace or clean it if necessary. You can save 5% or more on your energy bills by doing so regularly.
3. Check the blower by thoroughly examining it and the belt (if your furnace has one) for cracks or excessive wear. Replace it if necessary.
4. Inspect space heaters annually as well. As with any gas appliance, trouble signs to look for are: a yellow flame; soot; a lingering pungent smell; or overheating.

Many homes have gas appliances in the kitchen and laundry rooms. A few simple precautions there will make safety easy there too. Never use the top burners or oven of a gas range for home-heating purposes. Ranges and ovens are designed as cooking appliances only. Used improperly, they present a fire and burn hazard, and a malfunctioning gas range can produce toxic carbon monoxide.

Gas clothes dryers also need to be checked periodically. Make sure the dryer vent hose is free of lint. Lint buildup in the hose can cause a fire. Check the manufacturer’s instructions for information on how to remove lint from the hose, or call a qualified appliance repair contractor.

Even if everything appears to be in working order, it makes good safety sense to have all your gas appliances and furnace checked by a qualified heating contractor on a regular basis (annually is recommended).

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Home safety basics

(This content was written by the National Association of Home Builders. For more information, please visit their website at www.nahb.com)

The safety of family, home and belongings is critical to all of us. Being prepared and alert can save time, injury and possibly your life. Here are some things to do to help keep your family safe around your home:

• Store medications and small items such as jewelry and coins where toddlers can’t reach. Be alert for items that would stick in a child’s throat.
• Lock unloaded guns in a secure place and store guns and bullets in separate places. Do not let children see where the gun or bullets are hidden.
• Put razors, cosmetics and other health and beauty items out of reach.
• Do not leave hair dryers, curling irons or other grooming appliances out after use.
• Install child safety latches on cabinets and drawers.
• Do not store prescription drugs in the bathroom. Find a cool, dry spot in the house that is out of the reach of children and check for childproof safety caps for medication.
• Set your water heater temperature at 120 degrees Fahrenheit or lower to prevent burns and scalds.
• Turn pot handles away from the edge of the stove.
• Store cleaners and chemicals in their original containers in places where children can’t get to them. Never store them under the sink, even if protected by safety latches.
• Keep knives and other sharp objects out of children’s reach.
• Tuck away cords of electrical appliances so that small children cannot grab them.
• Replace electrical cords that are frayed or cracked or that become hot. Do not overload outlets and extension cords. Never run electrical cords under rugs.
• Put safety caps in all unused electrical outlets.
• Place house plants out of reach of children. Some are poisonous if eaten and others could injure your child if a heavy pot fell on them.
• Secure bookcases to the walls to prevent toddlers from pulling the cases over.
• Keep tools and garden chemicals out of children’s reach.

The National Crime Prevention Council offers this advice to keep your property and family protected:

• Check Your Locks
• Check Your Doors
• Look at Your Home from the Outside
• Consider an Alarm System
• Have a Family Plan
• Prepare When You Leave Town

Check Your Locks
Door and window locks in most homes today might keep out someone who just rattles the knob, but they won’t stop a determined or professional burglar. In more than 40 percent of residential burglaries, the thieves came in an unlocked door or window.

Every exterior door should have a dead-bolt lock with a one-inch throw. If you have a key-in-the-knob lock, install an auxiliary lock–a vertical bolt, cylinder dead-bolt, or horizontal-bolt model. And if you just moved into a new house or apartment, rekey the locks. You never know who may still have old keys. Also, do not hide your keys in mailboxes, planters, or under doormats. Give a duplicate key to a trusted neighbor instead.

Secure sliding glass doors with commercially available locks, with a rigid wooden dowel in the track or with a nail inserted through a hole drilled in the sliding door frame and projecting into the fixed frame. Lock double-hung windows with window key locks or by sliding a bolt or nail through a hole drilled at a downward angle in each top corner or the inside sash and part way through the outside sash. Consider grilles for basement or street-level windows if you live in a high-crime area.

Check Your Doors
Locks lose their effectiveness if they are installed in flimsy or weak doors. Make sure outside doors are solid, at least 1 3/4 inch metal or hard wood. Doors should fit tightly in their frames and hinges should be on the inside. Double check the door between your house and the garage since that is a common entry spot for thieves.

Install a peephole or wide-angle viewer in all entry doors so you can see who is outside without opening the door. A short chain between the doors and the jamb is not a good substitute because it can be broken easily.

Look at Your Home from the Outside
To discourage burglars from selecting your home, make sure that any shrubbery around doors and windows is pruned so they will not hide anyone tampering with the entry points. Cut back tree limbs that could help a thief climb into second story windows.

Keep your yard well-maintained and store ladders and tools inside your garage or basement when you’re not using them. All entrances and porches should be well lit.

Consider an Alarm System
If you live in an isolated area or in a neighborhood vulnerable to break-ins, explore the costs of an alarm system. The simplest in-house alarm system sets up a small electrical circuit across door locks and from window to frame. When this current is interrupted by someone opening the door or window, the alarm sounds. More sophisticated systems include sensing devices that set off a siren when an intruder disturbs a field of continually moving sound or radar waves. Advanced alarm system can be monitored by a central station which alerts the police if a thief breaks in. These systems can include smoke/fire alarms and “help” or “panic” buttons to signal a medical or other emergency as well.

Have a Family Plan
Remember that your goal is to avoid any confrontations with a burglar since there is a good chance he or she is armed. If you find a door ajar, a screen slit, or a window broken when you come home — do not go inside. Call the police from a neighbor’s house.

Prepare When You Leave Town
Notify a trusted neighbor that has a view of your house of your vacation schedule and ask him or her to pick up your mail, deliveries and newspapers. Put lights and a radio on timers to create the illusion that someone is home. Leave shades, blinds, and curtains in normal positions and arrange to have your lawn and garden maintained if you will be gone a long time. In winter, ask your neighbor to remove snow from your sidewalk and driveway and to leave footprints around your home to make it look like someone is around.

For a small investment of time and money, you can greatly reduce your chances of being a victim of home burglary. For more information on home security and safety, contact your local police or sheriff’s department.

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Financing your remodeling project

(This content was written by the National Association of Home Builders. For more information, please visit their website at www.nahb.com)

One of the most important considerations for your home improvement project is financing. After all, the project will go nowhere if you can’t pay for it.

Fortunately, there are several options that can provide the dollars you need. Four of the most common are a home improvement loan, a home equity line of credit, a home equity loan (second mortgage), and a cash-out refinancing of your current mortgage. However, the simplest method of financing is cash.

Cash
If you have cash in savings to pay for your remodeling project, this may be the best way to finance your home improvements. But be sure to consider the fact that, by paying in cash, you tie up money that could be earning interest in other investments. In other words, you need to look at the interest rate that you would be charged by financing the project and compare this to the interest you could earn by investing these funds.

Also remember that interest payments on a home improvement loan may be tax-deductible, while you can’t write off the expenses of a remodeling project paid for in cash. Crunch the numbers and meet with a financial advisor to determine whether paying in cash will really pay off in the long run.

Home Improvement Loan
Two special loans administered through the Federal Housing Administration (FHA) are the Title I and Section 203(k) programs. A Title I loan allows you to borrow up to $25,000 for improvements to a single-family home. These are fixed-rate loans that FHA insures against the risk of default. Loans must be made by an approved Title I lender.

The 203(k) program is not as well known, but if you are looking to purchase a fixer-upper, it is a terrific opportunity. It allows home owners to receive a single, long-term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of the property. To obtain a loan under the 203(k) program, you must use an FHA-approved lending institution. Most mortgage lenders are approved to make loans through this program.

Home Equity Line of Credit
A home equity line of credit is a form of revolving credit in which your home serves as collateral. This allows you to tap into these funds whenever you need it. The credit line is usually set at 75 to 80 percent of the appraised value of your home minus the balance of the first mortgage. Your credit history and ability to pay may also be considered in determining the amount of credit available.

Home equity lines of credit usually carry a variable interest rate that is figured by adding a margin to the current Prime Rate or some other index. Other costs associated with setting up a line of credit may also apply and will vary from lender to lender.

Second Mortgage
If you are not comfortable with the open-ended nature of a line of credit (which requires discipline to ensure that you don’t go way over budget), a home equity loan, or second mortgage, may be right for you. This is a fixed-rate, fixed-term loan based on the equity in your house that is paid back in equal monthly installments over a specific period of time.

Cash-Out Refinancing
If interest rates today are significantly less than when you first purchased your house, refinancing your mortgage may be a wise move. This refinancing alternative allows you to use the accumulated equity in your home to take out a new loan to pay off your existing mortgage and then use the remaining funds for your remodeling project.

Make sure you factor in the length of time you plan to live in the house and the number of years left on your current mortgage before you decide to refinance.

Keeping Your Budget in Line
Once you’ve decided how much you can afford to spend fulfilling your remodeling dreams, the real challenge is making sure you stick to this budget. So, how can you prevent your expenses from spiraling out of control?

• Plan on spending only 80 percent of what you can afford. Put the additional 20 percent in reserve to cover changes, unforeseen problems, and miscellaneous charges.
• Remember that anything not included in the original contract will cost extra. It’s very easy to start tacking on hundreds and even thousands of dollars in change orders that will break both your budget and your timeline.
• Stay focused on the task at hand. Stick to the project you have planned rather than deciding that now is the time to overhaul the rest of the house.

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Frequently asked questions about green remodeling

(This content was written by the National Association of Home Builders. For more information, please visit their website at www.nahb.com)

What is green remodeling?

A home can be considered green when energy efficiency, water and resource conservation, sustainable or recycled products, and indoor air quality considerations are incorporated into the process of home building. The increased availability of education for builders, growing consumer awareness and the exploding market for sustainable, environmentally friendly and recycled building products has accelerated green building’s acceptance rate and move into the mainstream. According to a recent survey, more than half of the members of the National Association of Home Builders, who build 85 percent of the homes in this country, were incorporating green practices into the development, design and construction of new homes by the end of 2007.

What are the benefits of green remodeling?

Green homeowners enjoy knowing they are doing something good for the environment, their family and the future by saving energy and precious resources. Counties can make consumers aware of rebates and credits to encourage them to build green. Many lenders now offer energy efficient mortgages. Visit: http://www.dsireusa.org/.

It’s good for the community, too. Local jurisdictions can make consumers aware of rebates and credits to encourage them to build green. By using fewer materials and generating less waste, green remodeling can help counties lower waste management fees, achieve recycling goals and delay the need for new power sources.

Who does green remodeling?

A new professional designation program from the National Association of Home Builders will soon provide home buyers with additional assurance that the remodeler they’ve chosen is authentically “green.”

The Certified Green Professional™ designation was unveiled during Green Day at the International Builders’ Show in Orlando, Fla.

“We know green is the future of building. With the Certified Green Professional designation, we’re helping our qualified members demonstrate to their clients that the future is here,” said NAHB President Sandy Dunn, a West Virginia home builder.

Builders, remodelers, and other industry professionals must have at least two years of building industry experience to apply for the Certified Green Professional designation.

They must also complete the “Green Building for Building Professionals” course, a two-day training and education session that more than 1,200 industry leaders have already completed since the course was piloted two years ago. Candidates must also complete a University of Housing management course, agree to continuing education requirements and sign a code of ethics. The business management and Green Building for Building Professionals classes are also offered at other NAHB conferences and by local home building associations throughout the country.

The first class of Certified Green Professionals will receive their designations at the 10th annual NAHB National Green Building Conference, May 11-13 in New Orleans.

Search for a Certified Green Professional in your area at www.nahbgreen.org.

How is NAHB Remodelers involved in green remodeling?

NAHB is helping its members move the practice of green building into the mainstream. Energy efficiency, water and resource conservation, sustainable or recycled products, and indoor air quality are increasingly incorporated into the everyday process of home building.

When a green home doesn’t look or feel significantly different from one built using more traditional construction methods, when builders have the tools and resources to build them without sizeable materials or labor cost increases, and when consumers readily accept the finished product, then ‘green’ has arrived.

The exploding market for sustainable, environmentally friendly and recycled building products, along with the greater availability of educational opportunities for builders, has accelerated green building’s acceptance rate..

The association prepares members with programs addressing education (such as the Certified Green Professional designation), award recognition, and market awareness.

NAHB also recently launched the NAHB National Green Building Program, a comprehensive resource on green building and remodeling at www.nahbgreen.org. NAHB is also launching a national green building and remodeling standard.

What is the significance of NAHB’s national green building and remodeling standard?

Communities can choose from a number of nationally recognized voluntary green building programs, but right now there is no recognized standard for green building. For that reason, NAHB is working with the International Code Council to develop the first-ever residential green building standard to be completed in early 2008. The standard is based on the NAHB Model Green Home Building Guidelines. The American National Standards Institute will certify the development process, ensuring a consensus-based document and adequate public comment. The standard will require third-party certification, above-code baselines for energy efficiency and guidelines for “right sizing” heating and air-conditioning equipment, but it will not mandate specific practices to achieve the required number of points, allowing home buyers to make choices for an affordable, flexible, regionally appropriate and “truly green” result.

There are more than 60 state and local green building programs in the United States, and you can find one by consulting this list or by contacting the state or local homebuilders association in your community.

Successful voluntary green building programs help to systematize the green design and construction process, instill consumer awareness and offer training to help the builder incorporate more green features into homes. They take advantage of tax credit programs and rebates. They often include educational initiatives for other members of the industry, including Realtors and product manufacturers.  They emphasize the importance of homeowner education in maintaining the efficacy of a green-built home. Most importantly, they emphasize affordability and flexibility by allowing a menu of choices: homeowners can choose how much they want to spend and make sure that their choice is regionally and geographically appropriate.

Voluntary, market-driven programs — maintaining a choice for builders and consumers — help the dynamic process of green building to advance further.

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Frequently asked questions about remodeling

(This content was written by the National Association of Home Builders. For more information, please visit their website at www.nahb.com)

Why remodel?

Remodeling your home can modernize the style, make it more comfortable, improve energy-efficiency and home functionality, increase the value of your home, and help with upkeep and maintenance. Remodeling is a sure investment in your home to ensure longevity, usefulness, and home value.

When is it time to remodel?

Perhaps it was that moment when you realized that avocado green and harvest gold are no longer the “in” colors for today’s trendy kitchens. Or maybe you had an epiphany one day as you stood in line to use your own bathroom. Whatever the impetus, the thought has crossed your mind: Maybe it’s time to remodel . . .

If you decide to follow through on that thought, you’ll join millions of others who decide to remodel their homes each year. The reasons for remodeling are as varied as the projects we undertake. Some of these include:

• Adding more space.
• Upgrading cabinets, counters, appliances, and fixtures.
• Creating a floor plan that’s customized for your lifestyle.
• Improving energy efficiency with new windows, doors, insulation, and climate control systems.
• Increasing the resale value of your home.

What are some remodeling ideas?

Before you head too far down the remodeling path, it’s a good idea to think through your wants and needs:

• Decide what changes you want to make.
• Ask yourself and other family members what you like and dislike about the house, then create a prioritized list.
• Look at magazines and collect pictures of what you like.
• Think about traffic patterns, furniture placement, colors, lighting, and how you want to use the remodeled space now and in the future.

Visit here, for more ideas on remodeling your home to make it more comfortable, modern, and valuable.

How do I plan a remodel?

The first step is to develop an idea of what you want to do. Write a prioritized list of your needs and wants. Look at magazines and Web sites and collect pictures of what you like. The more clearly you can envision the project and describe it on paper, the better prepared you’ll be in making your decision.

Think about traffic patterns, furniture size and placement, colors, lighting and how you expect to use the remodeled space. If your decision to remodel involves creating better access for someone with limited mobility, you may want to consider contacting a Certified Aging-in-Place Specialist.

Figure out how much money you have to spend on the remodeling job, furnishings, landscaping or any other cost you might incur.

If you’ve decided you want to hire a remodeler, learn how to choose a professional, avoid contractor fraud, and make your dream home reality.

How do I pay for a remodel?

One of the most important considerations for your home improvement project is financing. After all, the project will go nowhere if you can’t pay for it.

Fortunately, there are several options that can provide the dollars you need. Four of the most common are a home improvement loan, a home equity line of credit, a home equity loan (second mortgage), and a cash-out refinancing of your current mortgage. However, the simplest method of financing is cash.

How do I find a professional remodeler?

When you hire a remodeler, you are buying a service rather than a product. The quality of service the remodeler provides will determine the quality of the finished product and your satisfaction with the result. To ensure your satisfaction, make sure you hire a qualified, professional remodeler.

Look at the How to Hire a Professional Remodeler resource page for tips, questions to ask potential remodelers, qualities to look for in a remodeler, and a searchable directory to find a professional remodeler in your area.

What should I expect during the remodel?

While remodeling can be an exciting process, it can also present unexpected challenges. Many problems can be avoided by planning ahead. Check out these 10 Tips for a Smooth Remodel.

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Insuring your home

(This content was written by the National Association of Home Builders. For more information, please visit their website at www.nahb.com)

When you bought your home, you took out an insurance policy to cover the house and all of your family’s belongings inside. But was that the last time you thought about your insurance coverage?  Homeowners insurance includes insurance on the actual structure and the contents inside.

The structural part of the package generally covers damage such as fire and smoke, lightning, wind and hail storms, vehicles, explosion, and aircraft or other falling objects. The package should also include coverage for theft, vandalism, riot or civil commotion, freezing or sudden water escape from the plumbing system or appliances, glass breakage, and sudden tearing of heating or cooling systems.

A comprehensive homeowner’s policy should cover your home, any structure attached to it such as a porch or garage and any unattached buildings on your property that are not used for business or rented to others.  Damage caused by flooding, earthquakes and hurricanes are not covered by your regular homeowner’s policy. Your insurance agent can provide you with information about coverage of these natural disasters.

The personal property portion of the insurance package protects things in your home like clothes and furniture. It should also provide protection for your personal property while you are away from home, the things you take with you on vacation. The amount of insurance on your personal property is equal to a percentage of the amount of insurance on your home (usually 55%). However, it is important that you know that special limits may apply to certain types of personal property. For example, money bank note and rare coins, securities, stamp collections, jewelry and furs, firearms, silverware/goldware, rugs, tapestries and wall hangings. Higher limits on most of these items are available through upgrades on the policy or by taking out a separate policy for the items.

Check to see that your policy is written for replacement costs and you may want to consider inflation coverage. Replacement cost coverage on your personal property means that the insurance will pay to repair or replace your personal property that is covered. For example, if you bought an item several years ago for $100 and to replace it today would cost you $200, the insurance would pay $200. Inflation coverage automatically increases the amount of your insurance coverage on your home and personal property as inflation changes the cost of replacing your property. The changes are based on the movement of an inflation index and are reflected in the premium on each renewal.

But how do you know if you have too little or too much insurance? Start with a home inventory to help you assess your insurance needs. First you need to know how much it would cost to rebuild your house today on your existing lot. Ask your builder what the market rate is per square foot to rebuild your house. Multiply that times the square footage of your house and that’s how much insurance coverage you should have. The amount of your personal property coverage is a percentage of that amount (normally 55% and can be upgraded to 75%).

For your belongings inventory, list every item in your home, attic and garage, when you bought it, its original cost and its estimated value. It also helps to have photographs or a videotape of your possessions. Have a couple of sets of the photos or videos made. Keep one copy in a fireproof safe at home or a safety deposit box. Marking your items with a personal identification number such as the last four digits of your social security number (don’t put your full number as that will make you vunerable to identity theft) will make reclaiming any stolen items easier.

If you ever need to file a claim, the inventory will make it easier and ensure that you are compensated for virtually everything. If it’s not on your list when you file a claim, you won’t be compensated for something that you’ve paid for years to insure. Check with your insurance agent or company for a home inventory guide or advice on how to best organize your list if you should ever need to file a claim with them.

A homeowner’s policy will also include “personal liability” coverage. That is, the insurance provides payments for bodily injury or property damage for which you or a relative who lives with you may be legally responsible. For example, if someone is accidentally injured on your premises, such as falling down stairs and breaking a leg, or if your ladder falls over on your neighbors car and damages it. Personal liability also includes medical payments to others, meaning that if someone is accidentally injured on your property or is accidentally injured by you or a relative who lives with you, the insurance will cover medical expenses to a certain limit.

In case of a legal matter, your personal liability coverage includes the cost of defending you, whether you are liable or not, against an insured or covered law suits.  About one out of every three home owners has proper insurance coverage. Take some time today to make sure you are one of them.

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Mortgage basics

(This content was written by the National Association of Home Builders. For more information, please visit their website at www.nahb.com)

A mortgage is a long-term loan that uses real estate as collateral. A mortgage loan is commonly used for buying a home. Mortgage loans are usually fully-amortizing, which means that the monthly principal and interest payment will pay off the loan in the number of payments stipulated on the note. Mortgage loans are also described by the length of time for repayment, such as 15, 30 or 40 years, and whether the interest rate is fixed or adjustable. A mortgage loan where the downpayment is less than 20% usually requires private mortgage insurance (PMI) or government insurance or guarantee.

Most mortgage loans require monthly payments of principal and interest plus additional payments that are set-aside in escrow accounts to pay property taxes, homeowners (hazard) insurance, and any condominium or homeowner association assessments. Monthly mortgage insurance premiums for loans that have private or government mortgage insurance are generally included as part of the regular monthly principal and interest payment.

Some lenders offer “nontraditional” mortgage loans such as interest-only loans, in which case the borrower pays only the accrued interest and none of the payment is used to reduce the principal balance, or loans where the borrower chooses each month whether to make a minimum payment, pay the accrued interest only, or pay the accrued interest and a portion of the principal.

Home buyers who opt for a nontraditional mortgage should be aware that, depending on the terms of the loan, sudden and significant changes can occur in the monthly payment due to changes in the interest rate and/or payment terms. It is the home buyer’s obligation to fully understand the terms of their loan.

Some lenders offer bi-weekly mortgages, which call for 26 payments per year. The details of bi-weekly mortgages can differ, so it’s best to ask the lender to outline the details of how these programs work. A word of caution regarding bi-weekly mortgages. A number of companies offer bi-weekly mortgage programs that require the borrower to send their mortgage payment to a party that is not the lender. Borrowers should exercise caution to ensure that these payments will be sent to the lender on a timely basis and that the borrower, not the third party, receives the benefit of making bi-weekly payments.

Homebuyers who can afford the higher monthly payment sometimes prefer a 15-year mortgage to a 30-year mortgage. Interest rates on 15-year mortgages usually are slightly lower than 30-year rates. In addition, a homebuyer financing a home purchase with a 15-year mortgage will repay principal substantially faster and will pay far less total interest over the term of the loan.

Conventional Mortgages
A conventional mortgage is one that is not insured or guaranteed by the government. Conventional loans with a downpayment of less than 20% typically require private mortgage insurance (PMI), which protects the lender if the homeowner defaults on the loan. For more information about conventional loans, please check the Web sites of Fannie Mae and Freddie Mac, the two primary puchasers of conventional loans. Please note that Fannie Mae and Freddie Mac do not lend money to home buyers, rather, these organizations and other investors purchase loans that have been made to home buyers by mortgage lenders.

FHA-Insured Loans
The Federal Housing Administration (FHA), which is a part of the US Department of Housing & Urban Development (HUD), operates several low-downpayment mortgage insurance programs that buyers can use to purchase a home. FHA-insured loans generally require the buyer to make a three percent cash contribution to the downpayment and closing costs. FHA-insured loans are available from most of the same lenders who offer conventional loans.

The maximum FHA-insured loan amount for a one-family home ranges from $200,160 to $362,790 depending on local area median home prices and other factors. The Economic Stimulus Act of 2008, which was signed into law by President Bush on February 13, will temporarily raise FHA loan limits. Under the provisions of this law, FHA limits will range from $271,050 to $729,750 for loans approved through December 31, 2008. These limits will be effective when published by HUD in March. Your lender can provide more details about FHA-insured mortgages and the maximum loan amount in your area, or find information on FHA’s loan limits directly from HUD’s Web site.

VA-Guaranteed Loans
If you are a veteran of military service, reservist, or on active military duty, you may be able to obtain a loan guaranteed by the Department of Veterans Affairs (VA), which requires little or no downpayment. Get more information about the VA Loan Guaranty program.

Rural Housing Service Loans
The Rural Housing Service (RHS), which is a part of the US Department of Agriculture, offers Section 502 Direct and Guaranteed Rural Housing loans to homebuyers located in rural areas. Section 502 Direct loans offer reduced interest rates to lower-income borrowers who qualify, and are arranged directly through local USDA County Agents or through USDA Rural Development state offices.

A limited amount of funding is available for Section 502 Direct loans, so some lenders also offer “Leveraged Loan” programs. Leveraged loans combine a Section 502 Direct loan that carries a low interest rate with a conventional, market-rate loan. The “blended” interest rate on the resulting loan is lower than the current market rate as a result of the combination of the rates on the two loans.

The Section 502 Guaranteed Rural Housing Loans are arranged through participating local lenders and are available to a broader range of borrowers. Click here to find out more about RHS loan programs.

State Housing Finance Agency Loans
State Housing Finance Agencies (HFA) provide loans to first-time homebuyers and veterans of military service who have not previously received a loan through an HFA, often at below-market interest rates. Program availability and eligibility requirements vary from state to state. You should check with your state HFA for programs that are currently available. Find a link to your state’s HFA from the National Council of State Housing Agencies‘ Web site.

Adjustable Rate Mortgages (ARMs)
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. But with an ARM, the interest rate changes periodically, usually in relation to a specific index such as a cost of funds rate or the Treasury bill rate. Payments may go up or down accordingly. Adjustable-rate mortgages (ARMs) are characterized by the time frame for adjustment, such as 1 year, or 3, 5, 7, or 10 years. Hybrid ARMs have grown in popularity because they may offer a favorable fixed rate of interest for a time, such as 3, 5, 7, or 10 years, after which the loan becomes a 1-year ARM.

Lenders generally charge lower initial interest rates for ARMs and Hybrid ARMs than for fixed-rate mortgages. This makes the ARM easier on your pocketbook at first than a fixed-rate mortgage for the same amount. It also means that you might qualify for a larger loan because lenders sometimes make this decision on the basis of your current income and the anticipated monthly payments for the few year or two. Moreover, if interest rates remain steady or move lower, your ARM could be less expensive over a long period than a fixed-rate mortgage.

Against these advantages, you have to weigh the risk that an increase in interest rates would lead to higher monthly payments in the future. It’s a trade-off: you get a lower rate with an ARM in exchange for assuming more risk.

Here are some things to consider with an ARM or a Hybrid ARM:

• Is my income likely to increase enough to cover higher mortgage payments if interest rates go up?
• How long do I plan to own this home? (If you plan to sell soon, rising interest rates may not present the risk they do if you plan to own the house for a long time.)
• Can my payments increase even if interest rates generally do not increase?
• What index will be used to adjust the mortgage rate? Ask the lender for a table showing movements in the index over the previous 10 years to see how your mortgage payments would have changed.
• How often will the interest rate be adjusted? Every year? Three years? Five years? The longer the adjustment period, the better you will be able to plan your future loan cost.
• What is the initial mortgage interest rate? Does it include a special discount or “teaser?” If so, you could face a large increase in your monthly payments when the interest rate is adjusted for the first time.
• What is the margin on the interest rate? The margin is the amount that the lender adds to the index rate to calculate your mortgage rate. For instance, if the index rate is 7 percent and the margin is 2 percent, your overall interest rate would be 9 percent.
• What limits or caps have been placed on the adjustments? One of the most important items to discuss with your lender is the maximum amount that your mortgage rate can increase in any single adjustment period and over the life of the loan. Find out the “worst case” situation in the event of a sharp increase in your index rate.
• Is the loan convertible? If so, is there a cost to convert? Convertibility allows you to change your ARM to a fixed-rate loan at some designated time in the future.
• Is there a prepayment penalty? If you refinance your loan with a new loan, you may be assessed a fee.

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Natural disaster preparations

(This content was written by the National Association of Home Builders. For more information, please visit their website at www.nahb.com)

We often forget what a real emergency is until we are reminded by a disaster such as a hurricane, flood or fire. Emergencies and disasters can occur anytime, anywhere. Some are primarily seasonal and allow for certain preparations; others occur swiftly and without warning.

Planning ahead and making provision for your family’s needs can make a big difference in your ability to cope with emergencies. Communications, transportation, utilities and other essential services could be disrupted by disasters, forcing you to rely initially on your own resources for food, water, first aid, transportation, and shelter.

Following is general information from FEMA, the Federal Emergency Management Agency, for personal and family emergency preparedness for a variety of natural and man-made disasters and emergencies.

• Be Informed
• Develop a Family Plan
• Stockpile Food and Supplies
• Be Prepared to Evacuate
• After the Emergency

Combining these tips, with specific instructions at the time of the disaster will help you be better prepared for any problems.

Be Informed
Your key to surviving any emergency is to be prepared for it. You can lessen an emergency’s impact by knowing what to do before, during, and after one occurs. Although our community could be vulnerable to a variety of hazards, there are certain basic actions you can take now to help you in any emergency.

• Learn to recognize the warning signals. Make sure you know what the signals are, what they mean, how they will be used, and what you should do when you hear them.
• Listen to local radio and television stations for forecasts and emergency instructions. Post the dial/channel listings of these stations for easy access.
• Keep phone lines open to notify local authorities of fires, flash floods, tornado sightings, injuries or damage. Do not use the telephone to obtain emergency information.
• Learn your children’s school and/or day care center emergency plans.
• Learn your worksite’s emergency plans.
• Post all emergency plans/phone numbers in a prominent place.
• Learn your community’s evacuation routes, as some hazards may force you to leave your home. This is especially important for those in low-lying areas where flood waters could make roads impassable.
• Learn first aid. Professional medical assistance may not be immediately available.

Develop a Family Plan
Conduct family meetings and discuss hazards that may affect our area. Talk about what each family member should do in each of these emergencies. Put the plan in writing and see that everyone in the family has a copy. Parents should carefully explain safety rules to their children.

• Teach family members about smoke detectors and how to maintain them. Select a predesignated place to meet outside if a sudden emergency like a fire forces you out of the house. Conduct evacuation drills periodically.
• Go from room to room and imagine what would happen to furniture, appliances, fixtures, and objects during disasters. Identify “safe” areas in each room such as in doorways or under sturdy tables in earthquakes, or interior bathrooms or closets on the lowest floor for tornadoes. Identify all potential exits for each room. Check for frayed electrical cords or overloaded circuits. Don’t keep rags or paper goods near electrical equipment or flammable materials.
• Teach responsible family members how to turn off the water, gas, and electricity at main switches.
• Decide on an alternate location at which to meet if an emergency happens while your family is away from the home and they cannot return.
• Select someone outside your immediate area to act as a central point of contact for your relatives and friends who may try to call you following a disaster, as you may not have telephone service. As soon as some means of communication becomes available, get word of your situation to the contact person.

Stockpile Food and Supplies
An emergency could isolate you in your home for several days. Make sure you have on hand at least a five-day supply of food and water for each family member. Store water is sealed, unbreakable containers.

Since refrigeration and cooking facilities may not be available, foods should be non-perishable goods such as canned or sealed-package items. Rotate foods into your regular pantry supplies and replace stored water every few months.

Other items you may want to keep stocked for emergency use:

• Special medicines or foods required by family members — such as insulin, prescription medicines, baby food, or food required for special or limited diets.
• Battery-powered radio and flashlight and extra batteries for each.
• A first aid kit and manual. Your local fire department, rescue squad, or local American Red Cross chapter can offer advice about items you should include in your kit.
• Fire-fighting equipment to suppress small fires, including an all-purpose, 5-lb. fire extinguisher (rated A-B-C).
• Fuel heating device. Follow the manufacturer’s instructions and make sure there is adequate ventilation to avoid build-up of hazardous fumes.

Be Prepared to Evacuate
Keep a listing of family members’ prescribed medications, giving generic names and prescribed dosage. Also list the name and telephone number of your doctor. For those who rely on medical devices such as a pacemaker, the style, serial number, and other pertinent information should be carried with you at all times.

• Keep vital family records, such as mortgage papers, medical records, insurance policies, birth certificates, marriage licenses, wills, stock and bond certificates, tax records, and other irreplaceable items in one central location where they can easily be transported if you must leave the area quickly. Keep all papers in a water- and fire-proof container.
• Since you may be advised to evacuate your home or workplace temporarily:
• Keep your car fueled.
• Listen to the radio or television for local emergency instructions. Follow the instructions given. If you are advised to evacuate, do so promptly.
• Shut off your water, gas, or electricity as directed in an emergency.
• Use travel routes that are specified or recommended rather than trying to find short-cuts of your own. This is especially important during flooding when certain low-lying routes may become impassable.
• Once in a safer area, stay there until authorities tell you it is safe to return home.

After the Emergency
Listen to local radio or television stations for continuing advisories on ways to help recover from the emergency. Here is more advice to follow after an emergency:

• Use extreme caution when entering buildings that may have been damaged by the disaster. Buildings can collapse without warning.
• Check for leaking gas pipes in your home. Do this by Smell Only — don’t use matches or candles. If you smell gas 1) immediately open windows and doors; 2) turn off the main gas valve; 3) leave the house; 4) go to another location and notify the gas company and/or fire department. Don’t re-enter the house until you are told it is safe to do so.
• If any of your electrical appliances are wet, first turn off the main power switch in your house, then unplug the wet appliances, dry them out, and check for visible damage. If none, reconnect the appliances and turn on the main power switch. CAUTION –Don’t do any of these things while you are wet or standing in water. If fuses blow when power is restored, turn off the main power switch again and then inspect for short circuits in your home wiring, appliances, and equipment. Call the utility company for help.
• Use only battery-powered lanterns or flashlights to examine your home for damage, as flammables may be inside.
• Check food and water supplies before using them. Foods that require refrigeration may be spoiled if electric power has been off for some time. Don’t eat fresh food that has come in contact with flood water. Be sure to follow the broadcasted instructions concerning the use of food and water supplies.
• Check to see that sewage lines are intact before flushing toilets.
• Report damaged water, sewage, and gas lines to the proper authorities.
• If you must use your car, drive carefully along streets and avoid debris. Avoid loose, dangling, or broken wires, and report them to the fire department or utility company.
• Don’t visit the disaster area, as you may hamper rescue efforts.
• Notify your insurance agent or broker if your property was damaged.

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Top 10 energy wasters and saver

(This content was written by the National Association of Home Builders. For more information, please visit their website at www.nahb.com)

Learn about these top 10 energy wasters and savers.

Compact Fluorescent Lighting

One of the easiest things you can do is to change your light bulbs. It’s best to switch out incandescent bulbs with CFLs in areas that are lit for extended periods of time, typically two hours or longer. Switching a CFL on and off too frequently will shorten its life.

CFLs are four times more efficient (using 50 to 80 percent less energy) and last up to 10 times longer than typical incandescents, which have an average lifetime of 750 to 2500 hours, while CFLs last from 6,000 to 10,000 hours. CFL bulbs can range from $4 to $15 depending on their type. This is much more than typical incandescent bulbs, but energy bill savings will more than pay for the extra cost of the lamps over their lifetime, and you will have to replace fewer bulbs. Installing motion sensors or timers on outdoor lights, instead of leaving the lights on during nighttime hours, can also help to reduce the electricity bill.

Programmable Thermostats

Install a programmable thermostat to set your heating and cooling equipment to automatically turn on or off to match your schedule and create a comfortable and energy-efficient living environment. These units typically offer savings of 10 to 15 percent and cost $40 – $100.  Remember set your thermostat to a higher temperature in the summer and a cooler temperature in the winter – especially when you’re on vacation.

Fans

Fans and dehumidifiers use less energy than air conditioners and can help to make the home comfortable during the warm months.

Winterizing

Look for cracks and openings in the house that are letting cold air in during the winter and hot air in during the summer. Many leaks can be sealed with caulking and weather-stripping, which can greatly improve the energy efficiency of your home. Once you have sealed the cracks, the air tightness of your home can be tested by an energy professional performing a blower door test. Check with your local utility to see if they offer free or discounted testing. If they don’t, they may be able to recommend a professional, or you can go to www.energystar.gov for related links.

Tree Conservation

Properly placed trees and shrubs help to reduce your utility bills. Tree preservation reduces landscaping and future energy costs and helps provide winter wind breaks or summer shade. Deciduous trees planted on the west and south sides of your home help to keep your house shaded during the day’s peak heating times. Plus, as an added benefit, one tree can filter 60 pounds of pollutants from the air each year.

ENERGY STAR® appliances

When buying or replacing appliances, choose energy-efficient models. Federal ENERGY STAR-rated appliances are designed to use 10%-50% less energy and water than standard appliances and save an average of 30% over standard models. The up front cost is usually higher, but the payback over time should be well worth it. Look for dishwashers, induction cooktops, refrigerators, and front-loading clothes washers.

Induction Cooktops. Rather than heating the cooking surfaces, the magnetic induction process turns the pot into the heating element. Food is heated more quickly and to precise temperatures. Cooking with magnetic induction is 90 percent efficient, as compared to resistance electric at approximately 65-percent efficiency, and open-flamed gas which measures in the 55-percent efficiency range.A magnetic induction cooktop costs three to four times more than an electric cook top. A magnetic induction cooktop with four elements ranges in price from $1800 to $4000, depending upon the manufacturer and features.

High-Efficiency Refrigerators. Because a refrigerator is one of the most energy-consuming household appliances, federal regulations have mandated energy ratings and efficiency improvements for all refrigerators. New high-efficiency refrigerators exceed the federal energy requirements and can save consumers a substantial amount of money. Today’s generation includes more insulation, high-efficiency compressors, better door seals, and more accurate control of temperature than older models. They use between 450 kWh per year (for a 15-cubic foot top-freezer model) and 850 kWh per year (for a 26.7 cubic foot side-by-side model). This compares with the past typical new home refrigerators (with top-freezer) that used about 700-kWh per year and the typical 1973 model that used nearly three times the electrical energy. Furthermore, refrigerators certified by the EPA/DOE ENERGY STAR® program must yield at least a 10% improvement over the federal standard. Replacing a ten-year-old refrigerator with a new, high-efficiency refrigerator can save a homeowner $100 in average annual energy costs. (Dollar values assume a national average energy cost of $0.084 per kWh.)

Front-loading clothes washers. Front-loading washers use less water, energy, and detergent. According to the Environmental Protection Agency, front-loading washing machines can use about 40 percent less water and 50 percent less energy than conventional washers, cause less wear and tear on clothes, and can accommodate large items that won’t fit in a top-loader. A typical top-loading washer uses about 40 gallons of water per full load. In contrast, a full-size front-loading clothes washer uses between 20 and 25 gallons. Front-loading washers cost between $600 and $1,500, which is more expensive than top-loading machines. The estimated annual utility bill savings for a family of four is about $75 to $100 plus any additional savings associated with shorter drying time and reduced detergent use.

Insulation

You may consider adding insulation to your basement or attic, particularly if these areas are used as a bedroom or family room. The great thing about insulation is that it works in both hot and cold weather. When it is cold outside, insulation helps to prevent heat from flowing out of your house, and when it’s warm outside, it helps to prevent heat transfer into your house.  These days, you have a choice of insulation materials. You may be interested in environmentally-friendly materials such as blown-in cellulose insulation, or an energy-efficient spray foam insulation.

Energy-Efficient or Tankless Water Heater

Water heating typically accounts for 10 to 25 percent of the energy used in the home. If your water heater is over 20 years old, it is generally a good idea to get it replaced because today’s models are much more efficient. Tankless water heaters provide hot water on demand at a preset temperature rather than storing it, which reduces or eliminates standby losses – with 10%-20% water heating savings for electric models. Gas savings may be about 20% -40% ($50-$100/yr). Equipment life may be longer than tank-type heaters because they are less subject to corrosion. Expected life of tankless water heaters is 20 years, compared with between 10 and 15 years for tank-type water heaters. Tankless water heaters range in price from $200 for a small under-sink unit up to $1200 for a gas-fired unit that delivers 5 gallons per minute. Typically, the more hot water the unit produces, the more it will cost.

There are numerous other ways home owners can reduce the amount of energy they use to heat water: turn down the water heater’s thermostat setting to 115 to 120 degrees F; buy an energy-efficient water heater; install non-aerating, low-flow faucets and showerheads; use the “warm” water setting on your clothes washer instead of the “hot” water setting; and set your dishwasher to “energy saver” or “water saver.”

Right-Sized Equipment

When you decide to remodel, it’s a great time to evaluate your home’s heating, cooling equipment. Selecting more efficient, correctly sized heating and cooling equipment saves money. Remember that bigger does not always mean better. For the most efficient system, you really want your HVAC system to meet your needs – not surpass them. An oversized unit will cost more up front, plus your monthly bills can be higher. Oversized cooling equipment tends to cycle more frequently, which costs more to operate and can shorten the life of the unit. In the event you need to replace your central air conditioning unit, check for the ENERGY STAR label. If you find that your equipment doesn’t need to be replaced, give it a tune-up and take care of any minor repairs or leaks to improve efficiency, and make sure your pipes and ducts are insulated.

High Performance Windows

Consider replacing single-pane windows. Double-pane windows with high performance glass (e.g., low emissivity or “low-e” glass) that are gas-filled perform much better and help reduce heat loss in the winter and heat gain in summer. Low-E coatings used to add about $1 per square foot of glazing, however, in most climates this has become the standard. Low-E coatings save energy in most U.S. climates. In a simulation of a home located in Boston, low-E coating saved $103 per year. Interior storm windows provide a compromise by increasing energy efficiency while maintaining exterior aesthetics at a significant cost savings over window replacement.

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Top 10 tips for a smooth remodel

(This content was written by the National Association of Home Builders. For more information, please visit their website at www.nahb.com)

Follow these 10 tips when you embark on an exciting home remodeling project.

1. Establish good two-way communication with the remodeler. It’s essential to have good communication for a smooth remodeling project. Does the remodeler listen? Does he or she answer questions clearly and candidly? Can you reach him when you need to? Does he return phone calls promptly? Does he let you know when problems arise and work with you on solving them?
2. Make sure you have compatibility and “fit” with the contractor. You’ll spend a lot of time with your remodeler so it’s important to have a good rapport and trust in him. 
3. Set a clear and mutual understanding about the schedule. You and your remodeler should agree on the schedule up front to avoid conflict and problems later in the project.
4. Request a written proposal. Often times, two people remember the same conversation differently. Get the proposal in writing and work with the remodeler to ensure it reflects your wishes.
5. Determine a clear and mutual understanding on the miscellaneous details. There are a lot of little details that need to be settled before work starts. What times of day will they be working? How will he access the property? How will cleanup be handled? How will they protect your property? 
6. Remember to be flexible. Remodeling is an interruption of your normal life. Remember to be flexible during the project so that you can handle the unexpected and go with the flow.
7. Create a clear and mutual understanding of how Change Orders will be handled. With remodeling there is always the chance you may want to change materials or other project details during the job. Agree with your remodeler on how these changes will be handled before the start of work. Also understand that changes could affect the schedule and the budget, so it’s important you have all changes in writing.
8. Agree on a well-written contract that covers all the bases. The contract should include these elements: a timetable for the project, price and payment schedule, detailed specifications for all products and materials, insurance information, permit information, procedures for handling change orders, lien releases, provisions for conflict resolution, notice of your right under the Federal Trade Commission’s Cooling Off Rule (your right to cancel the contract within three days if it was signed someplace other than the remodeler’s place of business), and details on the important issues (such as access to your home, care of the home, cleanup and trash removal).
9. Ask for a written Lien Waiver from the remodeler upon completion of the work. If the remodeler hires subcontractors for portions of the work it is their responsibility to see them compensated. In order to ensure this has been done and to protect yourself, ask for a written lien waiver when the work is finished. This document will verify everyone has been paid. 
10. Establish a project plan, covering all phases and dependencies in the work. Plan your big picture goals with the remodeler and talk out your needs. Hire a remodeler who will plan it out with you, listen to concerns, and answer questions.

–From How to Hire Your Dream Remodeler by Tom Higgins, Superior Products Home Improvement, Littleton, Colo.

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Understanding your remodeling contract

(This content was written by the National Association of Home Builders. For more information, please visit their website at www.nahb.com)

Once you’ve picked a remodeler, no work should begin until you have reviewed and signed a written agreement or contract that spells out in detail the what, where, how, time span, and cost of your project.

What should your contract include?

• The contractor’s name, address, telephone number, and license number (if applicable).
• A visual representation – blueprint, floor plan, sketches – that shows what the remodeler will do and where.
• The timetable for the project, including approximate start and completion dates.
• The price and payment schedule.
• Detailed specifications for all products and materials. The description of each item should provide enough detail to clearly identify it, such as the brand name, model number, color, and size. This section of the contract may also describe any materials to be selected later, who will choose them, and the amount of money (called an allowance) set aside to pay for each item.
• Information on who will obtain and pay for necessary permits and other approvals.
• Insurance information.
• The procedures for handling change orders.
• Lien releases to ensure that you are not held liable for any third-party claims of nonpayment.
• Provisions for conflict resolution in the event of a contract dispute.
• Notice of your right under the FTC’s Cooling Off Rule to cancel the contract within three days if it was signed someplace other than the remodeler’s place of business.
• Details on issues like access to your home, care of the premises, phone and bathroom use, and cleanup and trash removal.

Once you have read your contract carefully, review it with your remodeler to clarify any wording you do not understand. If you still have questions after this meeting, you should discuss them with your attorney. When all your questions have been answered, you’re ready to sign the contract.

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