“I think I want to renovate, but... how do I start?”

You love your home, the neighbourhood and the kids’ school but your home is starting to look a little tired and it really is time to replace the windows. Moving is still an option but you know in order to get serious buyers your home really does need to be updated. Whether you are a do-it-yourselfer or planning to hire a contractor there are many ways to save and make sure you get the return on investment (financial and otherwise) you are looking for.

Why are you renovating and what is your budget?

Is it to increase floor space, update fixtures or increase market value? This is the time to start research on the average cost of the renovations you are considering and the resale recovery (see sidebar for guidelines). Check online at provincial and federal government websites to see if you qualify for home renovation grants or rebate programs for window replacement and Energy Star heating systems. If the renovation is extensive and is more than you have in cash, talk to The Credit Union about ways to finance your renovation. Whether it is through a mortgage, equity line of credit or a term loan, your financial advocate will work with you to find the product which best fits your financial situation.

For additional savings you may elect to do some of the less difficult aspects of your renovation. But before you decide to save this way make sure you can handle the work. Once your blueprints and materials list is finalized check to see what you can source from a building material recycler. You save money and help the environment at the same time.

How do you check out, hire and work with a contractor?

Your biggest asset is your home and protecting its’ value is of utmost importance. Selecting the individual who is responsible for ensuring the work is done right, on-time and on-budget is critical. Ask your friends, relatives and neighbours who have had similar work done for recommendations, also check with a service such as HandyCanadian.com, OntarioContractors.com or the Ontario Better Business Bureau. Make sure you ask for references and then actually check them out. Hire only someone with high rankings, strong referrals and whose work you have actually seen. Ask how long they have been contracting, what licenses, certifications and insurance coverage they have. Ask their insurer to mail you a copy of the insurance coverage.

Insurance coverage cannot be stressed enough. Everyone on the site and the property itself must have appropriate levels of insurance. Talk to your insurance company before work starts and they will let you know what type of coverage is needed for the project. Ensure all the appropriate work permits are in place. Get a contract in writing that details terms and costs. Will the contractor provide warranties for the work? Any changes or additions while the project is underway must be agreed to in writing and added to the original contract. Do not pay more than 50% down and only pay interim payments if work has been completed to your satisfaction. But be fair, do not slow-roll payments or look for ways to not make payment. It is best to agree on a payment schedule up front. Hold back 10% at the end (for about 45 days) to prevent a lien being applied if the contractor does not pay subcontractors.

Once you have found the right renovations, financing and contractor you are well on the way to making your plan a reality, and falling in love with your home all over again.