Remodel Smart: Know the Language
Chad D. Collins, AMB, CGP
Vice President North Carolina Home Builders Association
An educated shopper is a smart shopper. This especially hold true in the world of hiring and working with contractors to make improvements to your home.
As you interview potential contractors, being able to understand the terminology they use can help you avoid miscommunication and ensure a smoother remodeling experience so you and your family can enjoy your new or updated kitchen, bathroom or room addition even sooner.
Here’s a glossary of some of the common terms used by builders and remodelers to help you understand the language of your remodeling project:
Allowance: A specific dollar amount allocated by a contractor for specified items in a contract for which the brand, model number, color, size or other details are not yet known.
Bid: A proposal to work for a certain amount of money, based on plans and specifications for the project.
Building Permit: A document issued by a governing authority, such as a city or county building department, granting permission to undertake a construction project.
Certified Graduate Remodeler (CGR): A professional designation program offered through the National Association of Home Builders (NAHB) Remodelers Council™. To attain the CGR designation, a remodeler must take a specified number of continuing education courses and must comply with a strict code of ethics.
Certified Aging-in-Place Specialist (CAPS): The CAPS designation was developed by the National Association of Home Builders and AARP. CAPS professionals have been taught the strategies and techniques to meet the home modification needs of home owners who want to continue living in their homes safely, independently and comfortably, regardless of age or ability level. CAPS graduates pledge to uphold a code of ethics and are required to maintain their designation by attending education programs and participating in community service.
Change Order: Written authorization to the contractor to make a change or addition to the work described in the original contract. The change order should reflect any changes in cost.
Cost-plus Contract: A contract between a contractor and home owner based on the accrued cost of labor and materials plus a percentage for profit and overhead — also known as a time-and-materials contract.
Draw: A designated payment that is "drawn" from the total project budget to pay for services completed to date. A draw schedule typically is established in the contract.
Plans and Specifications: Drawings for the project, and a detailed list or description of the known products, materials, quantities and finishes to be used.
Subcontractor: A person or company hired directly by the contractor to perform specialized work at the job site — sometimes referred to as a trade contractor.
To learn more about remodeling your home, including a checklist for selecting and hiring a remodeler and advice on financing and designing your project, visit www.nahb.org/remodel
Tuesday, June 21, 2011
Americans Still See Homeownership as a Top Priority
Americans Still See Homeownership as a Top Priority
Chad D. Collins
Vice President North Carolina Home Builders Association
Americans still consider owning a home essential to the American Dream, and Washington policymakers would be wise to keep this in mind in the coming election season.
Proof of this statement is evident in a May 2011 poll conducted on behalf of the National Association of Home Builders by Public Opinion Strategies of Alexandria, Va., and Lake Research Partners of Washington, D.C.
The national poll reached two thousand likely voters and asked them about their attitudes regarding homeownership and housing policy. The results could not be clearer.
Despite the ups and downs of the housing market—and whether or not they currently own a home—voters overwhelmingly indicated that they place a high value on homeownership as a core achievement in their lives.
Of the poll respondents who are current home owners, nearly all of them—95 percent—said they are happy with their decision to own a home and believe that owning their own home is important. Almost three-quarters of respondents who do not now own a home said it is a goal of theirs to eventually buy one.
Equally telling, voters rated the importance of homeownership just as highly as the importance of being successful at their job or being able to pay for a family member’s education.
The bottom line is, even after years of economic turmoil and an unprecedented and prolonged downturn in the housing market, homeownership is still a central goal for most Americans. It’s an undeniably deep emotional attachment that can’t be ignored by the politicians who are looking to address budget issues by cutting housing incentives in the tax code such as the mortgage interest deduction.
Americans also feel strongly about the financial benefits—and challenges—of homeownership.
Poll respondents said they considered owning a home their best investment, more than their retirement savings program or stock market investments. And 75 percent said that owning a home is worth facing the potential ups and downs of the housing market.
Meanwhile, non-owners identified saving enough money for a down payment and closing costs as the number one barrier keeping them from homeownership, more than job uncertainty or concerns that the value of their home may drop below the purchase price.
Yet exceedingly stringent mortgage lending requirements could make that barrier even tougher for the typical American family to overcome in the future. For example, according to estimates by both NAHB and the Center for Responsible Lending, it would take more than 12 years for a typical family to save enough money for a 20 percent down payment on a median-priced single-family home.
Lawmakers need to put themselves in the shoes of the average American, and see that excessive down payment requirements and a reduction in housing tax incentives will keep homeownership out of reach for most first-time home buyers and many middle-class households. This would be a fatal blow to the American Dream for many, many families.
Chad D. Collins
Vice President North Carolina Home Builders Association
Americans still consider owning a home essential to the American Dream, and Washington policymakers would be wise to keep this in mind in the coming election season.
Proof of this statement is evident in a May 2011 poll conducted on behalf of the National Association of Home Builders by Public Opinion Strategies of Alexandria, Va., and Lake Research Partners of Washington, D.C.
The national poll reached two thousand likely voters and asked them about their attitudes regarding homeownership and housing policy. The results could not be clearer.
Despite the ups and downs of the housing market—and whether or not they currently own a home—voters overwhelmingly indicated that they place a high value on homeownership as a core achievement in their lives.
Of the poll respondents who are current home owners, nearly all of them—95 percent—said they are happy with their decision to own a home and believe that owning their own home is important. Almost three-quarters of respondents who do not now own a home said it is a goal of theirs to eventually buy one.
Equally telling, voters rated the importance of homeownership just as highly as the importance of being successful at their job or being able to pay for a family member’s education.
The bottom line is, even after years of economic turmoil and an unprecedented and prolonged downturn in the housing market, homeownership is still a central goal for most Americans. It’s an undeniably deep emotional attachment that can’t be ignored by the politicians who are looking to address budget issues by cutting housing incentives in the tax code such as the mortgage interest deduction.
Americans also feel strongly about the financial benefits—and challenges—of homeownership.
Poll respondents said they considered owning a home their best investment, more than their retirement savings program or stock market investments. And 75 percent said that owning a home is worth facing the potential ups and downs of the housing market.
Meanwhile, non-owners identified saving enough money for a down payment and closing costs as the number one barrier keeping them from homeownership, more than job uncertainty or concerns that the value of their home may drop below the purchase price.
Yet exceedingly stringent mortgage lending requirements could make that barrier even tougher for the typical American family to overcome in the future. For example, according to estimates by both NAHB and the Center for Responsible Lending, it would take more than 12 years for a typical family to save enough money for a 20 percent down payment on a median-priced single-family home.
Lawmakers need to put themselves in the shoes of the average American, and see that excessive down payment requirements and a reduction in housing tax incentives will keep homeownership out of reach for most first-time home buyers and many middle-class households. This would be a fatal blow to the American Dream for many, many families.
Wednesday, June 1, 2011
Selling Tips for Home Buyers
Selling Tips for Home Buyers
Chad D. Collins, AMB, CGP
Regional Vice President North Carolina Home Builders Association
There are incredible opportunities to buy a home in today’s market. Interest rates are near historic lows, prices are more competitive than they’ve been in years, and there is a large selection of homes available for sale to choose from. Whether you would like more space to accommodate a growing family or less to better suit an empty-nester lifestyle, the current buyer’s market makes it an ideal time to make a change.
But what if you have to sell your current home before you buy a new one? While the buyer’s market means when you buy your new house you will be able to get more for your money than a few years ago, it also means you will have to make sure your existing home is presented in its most attractive light in order to attract bids from potential buyers.
Here are some tips to help you improve your chances of attracting a buyer:
• Start with a realistic price. Thoroughly research what homes comparable to yours have sold for in the past year, as well as what the asking price is for the homes that are currently for sale. If you are working with a Realtor, they can do this for you. A price that’s too high may keep your home on the market so long that buyers will assume there are problems.
• Curb appeal is critical. Some prospective buyers never get out of the car before deciding that a run-down house is not for them. Keep your lawn neatly mowed and seed bare spots, mulch all the garden beds and plant colorful annuals, and paint or touch up fences, trim and the house itself, if it needs it. Fix anything sub-par that’s visible from the street.
• Clean, clean, clean. From the minute buyers arrive at your front door, make sure that everything they see is super clean. Put out a new welcome mat. Thoroughly clean carpets, floors, baseboards, curtains, windows, and especially all the surfaces and appliances in your bathrooms and kitchens. Repaint the walls if they are scuffed or stained.
• Don’t forget odor. The home should both look and smell clean and welcoming. Open windows in good weather to encourage fresh air to circulate. Use scented cleaners or air fresheners. Some sellers even pop a batch of cookies into the oven or simmer spiced cider on the stove if they know a potential buyer is coming.
• Make sure everything works. Fix everything from the merely cosmetic such as burned-out light bulbs, to things that could raise red flags with buyers such as broken sink disposals and leaky faucets. If you don’t fix it, their home inspector will find it.
• Clutter kills sales. Make sure beds are made, toys are put away, bookshelves are neatly organized, and counters are cleared of personal items. If your house is too full—and that includes attics and basements—prospective buyers will have trouble visualizing their furnishings and possessions fitting in the space. Consider temporarily moving some furniture or boxes to the homes of friends or family, rent a storage facility, or even have a yard sale.
Prospective buyers can see that buying a house that’s already attractive and in good working order will make their lives easier—and could help you get into the home of your dreams that much sooner.
Subscribe to:
Posts (Atom)
