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Improvements on a Budget

Remodeling seems to be an innate tendency, the great American thing to do. Sometimes it seems, though, that the urge gets put off until the homeowner starts thinking about selling. "Why didn't I do this before?" Whether you are doing the work for your own enjoyment or in order to prepare to be sold, though, you will want to get the most for your money.

Owning a home is a serious financial commitment with big implications, and if you are not careful, you could spend too much in anything connected with it. A remodeling project could be for a single room, a porch or deck, or the whole property. Getting a qualified professional is one way to get a quality job accomplished at the right price. There are, however, some traps you have to watch out for.

The Federal Trade Commission says that homeowners should watch out for the tricks of bogus firms. The FTC has published warnings about these signs that your contractor may be trouble:

* Asks you to apply for the building permits
* Only accepts cash
* Wants all the money before the project is done
* Offers a price break for finding clients
* Has extra materials from a previous job
* Insists on an instant commitment to a contract

Those are warnings that you should walk away. Sometimes these con artists will try to get you to borrow from a lender that they suggest. At the worst limit of the possible ways things could turn out, a home improvement loan scam could leave you homeless.

Here are precautions you have to take to avoid being taken advantage of. Interview your potential contractors thoroughly. The FTC recommends that you ask how long they have been in business, license details, and insurance coverage. Check with the permit office to find out what you need to know about permit laws. In other words, ask around. These steps are just like the normal things you have to do for any important purchase.

One other very important technique is to ask for recent references. You should not only collect a list, but you should follow up. Ask the references, who should be former clients, about the quality of the work.

Payment terms have to be clear and agreed upon before they start. Some local laws set limits on how much higher the final cost can be from the contract estimate. Check into whether this is the case in your area. Don't pay in full until you are satisfied with the work.

Information provided by Automated Homefinder, the Colorado home experts.