Remodel or Move?

There are various choices you can make when you deal with investments in the real estate industry. In the midst of the overwhelming possibilities, make sure that you are always making options that are geared towards profitability and the productiveness of your ventures. For instance, if you are torn between a salient decision of buying a new house or remodeling your old one, carefully assess the two alternatives and consider the pros and cons that you are bound to encounter in the process. This always helps as to whether your investment is truly in the right track.

A sound venture is something that is carefully and comprehensively studied and assessed based on all aspects of their prospective options. For instance, if you are going to buy a house or renovate your old residence, then you need to consider some of the basic resources you have specifically funds and budget. Do you have sufficient money to spend on your home project? If you are seriously considering purchasing a new house, you need to secure a home equity loan in order to finance your venture. Getting a mortgage is not a simple task to start with. A hefty amount is primarily needed to comply with the different payment obligations incurred in the process of closing your transaction. Closing costs include the fees for the provision of the title insurance and the credit report for your qualification and approval of the loan. You also need to pay for the home appraisal, real estate commission and that of the seller's cost.

Remodeling your house on the other hand only needs a smaller amount of money especially if you intend to do cosmetic and minimal renovations around the house. If you deem it necessary to make some major structural upgrade, then you need to exert more effort, time and money as well. Make sure that your home project is in line with the zoning requirement, have proper building permits to avoid code violations and the like. Heeding the rules and regulations of the homeowners association especially if your renovation is potentially affecting your other neighbors is also very important before your jumpstart your ventures.

Tips for Finding Your Perfect Contractor

• Ask for referrals from friends, neighbors, and co-workers.
• Ask other people who have done work for you in the past such as your plumber or gardener.
• Search your local and free newspapers for contractors' ads.

Always make sure your home remodeling contractor is fully licensed with state and local governments. Make sure the license is valid and up to date—do not rely on the contractor's word. You should contact your state, county, and city governments for information on the contractor's license. The website www.contractors-license.org lists licensing requirements for all fifty states. Also make sure the contractor is fully insured and carries worker's compensation, liability, and property damage insurance.

Follow this contract checklist: Every contract should include:

• Remodeling Contractor information including name, address, telephone numbers, license number.
• A list of what the contractor will and will not do—for example, the tasks you have chosen to do, such as painting or demolition.
• All materials, sizes, colors, specifications.
• A dated copy of all drawings and diagrams. If changes need to be made during the project, they should be made to these documents and initialed and dated by both you and the contractor.
• Start and finish dates.
• The times work will start and finish and the days of the week that workers will be at your home.
• How change orders will be handled.
• A warranty for one year.
• binding arbitration clause.
• A statement of how the contract can be canceled.
• A statement that the contractor will provide affidavits of final release, final payment, or final lien waivers from all subcontractors and suppliers.

Marrokal is the Company That Has Experience and a Healthy Reputation as Well as Trust

A company that you can trust with your home

Nothing can beat a quality reputation. If the work doesn’t measure up and problems with the remodel mount, the company will eventually find itself buried in lawsuits. Homeowners should always check with a remodeler’s past projects. Ask for clients to speak with and then take the time to view the projects that are similar to the work you will be having done. The extra hours of research could save you future endless headaches and thousands of dollars.

“You really want to talk to a client that the company is doing work for currently. Everyone has a happy client that had work done six months or a year ago, but homeowners should seek to talk to someone who is getting work done right now or whose home was just completed,” says Gary Marrokal, owner of Marrokal Design and Remodeling. He says it gives an accurate picture of what you can expect.

A company that has experience and a healthy reputation

The biggest complaint in the industry is that many home remodeling companies hire surly, fast-talking sales associates to close deals on remodeling projects. This creates a disaster. Homeowners feel pressured and end up with unsatisfactory remodels.

Marrokal says his company has studied customer service training, and the staff knows that the company’s biggest asset is its clients. That’s why their complete satisfaction is a must. And it begins with educating clients. Marrokal Design and Remodeling carefully guides clients, but ultimately lets them choose which level of quality they want for their home.

“You want a company that will give good value but you want a company that will educate you about the different levels and costs for products so that you can choose how much to spend ,” says Marrokal. He adds, 

“All cabinets will hold your plates but you want hinges and wood that will work ten years from now. You want a finish that will look good 10 years later.”

An Entire House Transformation by Marrokal Wins a Contractor of the Year Award (CotY) from the National Association of the Remodeling Industry!

This 1971 home underwent a total design transformation, inside and out, to become the well designed comfortable home that these clients wanted. With a penchant for old world ambiance, the owners wished their home to reflect warmth and style with European appeal.

An elevated arched tower now provides a dramatic entrance into the home from the newly designed front courtyard. Custom designed wrought iron gates at the courtyard’s entrance reflect the same arc as the towers arch. Hand chiseled Ann Sach’s tile was laid in a Versailles pattern throughout the courtyard and El Dorado Stone was applied to the front exterior. Reclaimed European pavers were set into the driveway to recreate a particular Italian street pattern favored by the owners and carriage style garage doors were installed to replace the original aluminum roll-up.

In order to effectively utilize all of the space within the home’s original footprint, the center of the residence was opened to create one large cohesive space that accommodates the kitchen, dining, library and living areas. Separate “his” and “her” offices were designed adjacent to the entry vestibule, with French doors opening to the front courtyard from “hers”. The coffered ceiling in “his” features inserts of recycled grass cloth.

The raised outdoor pavilion, carved from the formerly unused hillside, adds a final dramatic element. Carved from the hillside, this outdoor room was created to provide an al fresco retreat complete with all amenities. The conversation area, featuring fireplace and fountain, has all the current multimedia options and is only steps away from the separate outdoor dining area. The home’s Tuscan theme is displayed in unique finishes and designer details used throughout.

Hand-painted and intricately patterned tile was applied to the face of the built in seating areas. Custom scroll work railings accent the staircases, each designed with a quarter-turn radius. The cast stone fireplace creates a distinctive focal point while custom blended, hand chiseled Ann Sacks limestone tiles provide an inimitable flooring surface. The layered stone fountain, set in a fragrance garden provides a final tranquil element. These homeowners are delighted with their home’s total transformation into a tranquil retreat, both inside and out, reminiscent of a European vacation.

The Contractor of the Year (CotY) awards are given each year by NARI Headquarters to members who have demonstrated outstanding work through their remodeling projects.  NARI Contractor Members are invited each year to compete for the prestigious Contractor of the Year (CotY) Award.  CotY Award Winners report that winning this award is a major factor in enhancing their image within the industry and with prospective clients, and is a major morale-booster for their employees.

The Hard Part! Comparing Bids!

This may be the hardest part of the entire process but it is also the one that has the biggest rewards.  After you have received all the information from different home remodeling contractors you are ready to find the one that is best for you!

This is where your initial homework starts to pay off. Each estimate your receive needs to be in writing and it should have a specific scope of work that mirrors the information that you provided them. And in most cases the estimate will have more detail. If the Contractor's estimate is vague and lacking specific details relating to the work, this is a Contractor that you may want to pass on. If you accept an estimate that does not specifically describe the work that the Contractor is proposing to complete, you are leaving yourself open to costly "Change Orders" at the discretion of the Contractor. It's not a good position for you, as a homeowner, to put yourself in. So keep in mind, it's your responsibility as a homeowner to make sure the Contractor has a complete understanding of the work you want completed and it must be conveyed in writing on the estimate.

Once you have established that each estimate is for the same scope of work, let's now look at each price. When it comes to remodeling, the saying "You get what you pay for" is a good guideline but it definitely doesn't mean that a more expensive bid is your best choice. For example, you could have (2) bids that are somewhat higher than your budget and a lower bid that may be a little less than your budget. Most of us would automatically consider the lowest estimate initially but we have to figure out why that Contractor's bid is much lower than the other two. Below are some questions you need to ask each bidder.

- Did the Contractor omit a portion of the scope of work? If so, have them revise the estimate.
- Does the Estimate include having the Contractor prepare architectural drawings, if necessary?
- Are they using lesser quality materials (paint, cabinets, tile, etc.)?
- How long will it take to complete the work?
- Are they insured with a General Liability policy?
- Can they provide a minimum of 5 to 10 references from previous projects?
- Are permits necessary and if so, is the cost included in the estimate?
- Is the Contractor willing to let you visit several of their jobs?
- What type of Warranty does the Contractor provide?

Organizing Your Ideas for Your Contractor

Step 1 - Organize your Ideas

The first and probably the most important step is to do a little research yourself to find out how much the work you want could cost.  There are many resources available, such as:  the internet, library, or other family and/or friends who have had similar work done.  Doing this helps start the project off on the right foot.

Your goal is to get several estimates or bids that are all based on the same scope of work; apples to apples if you will. You have to be able to provide the remodeling Contractor with enough information so they can prepare an estimate that meets your goals and you must provide each Contractor with the same scope of work. If not, the pricing that you get from each Contractor will be very difficult to interpret which could slow you down and ultimately cost you more money. The last thing you want is a home remodeling Contractor that is going to "Change Order" you until your pocket book has dried up. So, try to finalize as many of the details as possible.

This means that you, the Homeowner, must put all of your ideas and scope on paper including photocopies of pictures, any layouts, designs, sketches, etc. And never give your originals away because you may not see them again.

Talk to Several Contractors, Not Just One!

It's be really easy to just find one contractor that you like to do your home project.  It's even easier to get several bids and just pick the lowest priced one.  However, this is a serious mistake and gets your home project off on a terrible start.  You need to shop around for home remodeling contractors and find one that provides quality and affordability.

Look for Contractors affiliated with the Better Business Bureau, National Association of the Remodeling Industry (NARI), National Kitchen and Bath Association (NKBA), National Association of Home Builders (NAHB) or any other local building or remodeling association. Look at each Contractors website to see what type of work they perform. What are their specialties? And if they do not have a website, you should be cautious if you decide to contract with them.

The most organized Homeowners form a typed copy of a basic scope of work with copies of any pictures, layouts, designs, sketches, etc. And it's easy for the home remodeling contractor because they know exactly what you want!

During your meetings with each Contractor, hand over your information that you compiled and walk the job with each of them. Be prepared to answer numerous questions. Some will be easy to answer and others may need some additional research on your part. Either way, try to stick with your initial scope of work and do not deviate. You want the bids to be apples to apples and changing the scope during your meeting with the Contractor will only make it more difficult for you to interpret the figures on each bid. You can always adjust the scope after the estimates are gathered and you have narrowed down the potential Contractors.

Ask each Contractor how long it will take them to prepare the estimate and make sure they honor those dates. If they don't, that should be a red flag.