3 Innocent Mistakes that Could Destroy Your Home Improvement Project

Home improvement projects are providing the solution to the housing market slump across the nation, as savvy investors and homeowners are fixing up their properties to rebuild their equity. However, these three simple, innocent mistakes could cause your home improvement project to backfire disastrously on you.

Innocent Home Improvement Mistake #1: Ignoring the comparable properties in your neighborhood.

Many homeowners, especially first time homebuyers who are looking to buy and renovate a house, fail to recognize the importance of the other properties in the neighborhood. This is truly an innocent mistake, but it’s crucial to the success, or failure, of a home improvement or home renovation project.

The real mistake comes when the homeowner attempts to renovate the house above and beyond the quality or size of the other houses on the block. In the world of home improvements, you definitely do not want to be the biggest house on your street. Similarly, you will waste money on renovations that install luxury items well beyond the quality of the other homes’ finishings.

When executing a home improvement project, your home’s final market value is going to be based entirely on a comparison between your home and the other homes in your immediate area, such as on your street. If your home is so far above and beyond the other houses around you, then it becomes impossible for an appraiser to adequately compare them. Once this happens, the appraiser is forced to default to the value of the lesser homes.

To a real estate novice, this seems unfair. It might seem reasonable to a newbie that a neighborhood that has 2,000 square foot homes selling for $ 200,000 will bring a value of $ 400,000 if a 4,000 square foot home is built. But, it doesn’t work this way. Instead, the 4,000 square foot home is judged as being completely out of place for the neighborhood due to the fact that there are no truly comparable homes by which to estimate its value.

Of course, this is an extreme example, but the same principles apply when trying to decide what finishing items to install in your home improvement project. What cabinets, appliances, countertops, etc. will be best to put in your new property? If you are going to go overboard, recognize that you will be spending lots of money on items that aren’t going to bring a strong return in value.

So, what can you do to protect yourself? The key is understanding a real estate appraisal. Even better, take the time to learn how an appraisal for a home renovation loan is going to work. If you do this, then you’ll see the best way to fix up a property to maximize the return in value based on comparable properties in your area.

To get a feel for the appraisal process for a home renovation loan, speak with a qualified loan officer about the process. He or she should be able to give you specifics of what the lender will look for when reviewing an appraisal for a home improvement project. If commit to spending too much money on the renovation, and the appraisal doesn’t come back high enough, it will translate to extra cash out of your pocket to close on the home improvement loan. So, speaking of home renovation lenders, let’s take a look at the second most common mistake.

Innocent Home Improvement Mistake #2: Working with a Lender that Doesn’t Specialize in Home Renovation Loans.

If you are considering a home improvement project, whether you want to buy and renovate a home or whether you want to fix up the home you already live in, then you will want to work with a lender who knows home rehab financing inside and out. Unfortunately, many borrowers make the mistake of walking into their local bank that they have worked with in the past. But, if that bank doesn’t specialize in home renovation loans, then the borrower suffers endless delays and frustrations, as well as pays too much for the financing.

It’s not that these lenders are purposely trying to cause problems. In most cases, they are probably scrambling to do their best to provide the home renovation financing. Unfortunately, they just don’t know the programs to use and don’t have the licensing for them. For example, in today’s mortgage industry, one of the best home improvement financing programs is the government insured FHA 203(k) loan. Not all lenders are approved to use the FHA program, and almost none are approved for the specific FHA 203(k) home renovation loan.

Therefore, one good question to ask your lender is whether they specifically provide FHA 203(k) home renovation loans. If they say yes, then you should ask them if they can provide both the FHA 203(k) Streamline program as well as the full FHA 203(k) rehab loan. There is a difference between the two, which can prove vital to your project’s success. Therefore, if your lender can’t answer these questions to your satisfaction, keep looking.

You wouldn’t go to restaurant to get a tune-up for your car. Likewise, you shouldn’t go to a bank that doesn’t specialize in rehab loans for your home improvement project. It’s crucial that you work with the right people, which brings us to the third mistake.

Innocent Home Improvement Mistake #3: Hiring the Wrong Home Improvement Contractor.

Nobody intentionally hires the wrong contractor, which is why this mistake is truly an innocent one. However, it’s pivotal to the success or failure of any home improvement project.

Most people hire a contractor based on one or two phone conversations. There is typically very little research performed and very little to no comparison shopping completed. The only right way to hire a home improvement contractor is to get bids from multiple (at least three) contractors based on a list of job specifications that you have prepared for your project.

If you do the bidding process properly, you will have an apples-to-apples comparison of the prices and services offered from the contractors. And, you will immediately see which contractors can communicate and work with you professionally. If you fail to take this step seriously, because you are rushing to get to the actual rehab work, then you will probably end up with a contractor who is going to under-perform.

Remember, it’s your project, and nobody is going to care about its success as much as you do. So, take the time to get the proper bids from at least three home improvement contractors. If you are unsure of how to go through this process, speak with your loan officer. Fortunately, if you followed the advice from this article, you will be working with a lender who specializes in home improvement projects.

Chris Esposito works at CM Direct, Inc., the nation’s number one source for home renovation loans , including FHA 203(k) financing. For more information about the FHA 203(k) program or home improvement loans in general, visit www.DirectRehabLoans.com , or call (877) 876-3688.

Common Do-It-Yourself Mistakes in Home Repair

People today are really inventive when it arrives to house repairs. We will locate ways to fix a leaky faucet or some duct operates in progressive methods with home things, or we develop imaginative wiring methods to present electrical power exactly where we require it. Truly about is our capability to repair things in such a way that can result in critical hurt. For this explanation, I would like to point out some issues that I see all too regularly, so you can prevent these problems.

Note: There is not plenty of space right here to go into the particulars of how to complete these jobs. Aside from there are numerous great publications, which have straightforward to adhere to methods and diagrams. I have discovered repair manuals like these in utilized guide outlets, but they are not also poor at other locations. These volumes are excellent for home owners who want to tackle assignments themselves.

Extension cord outlets seem to be to be a favored indicates of delivering energy to devices outside. I have observed tiny extension cords lower in half and passed via the wall the place there is a tiny opening. The cords are then spliced again jointly with tape, so h2o can get in and short out the circuit. Most cords of this dimension are not rated to handle the kind of use you would be preparing to manage, so they begin to overheat, and the casing will melt away. If you will need an outlet for Xmas lights, I recommend putting in an outlet in your soffit. The soffit is the board underneath the overhang of the roof.

Uncover a junction box in the attic from which you can run a wire. Seem for the place a rafter comes down to attach the outlet box to it. The outlet does not want to be GFCI in this spot, but it would be a very good notion to go ahead with a GFCI outlet here. Attach wires to rafters and joists with wire clips. If you will need an outlet for resources outdoors, the least difficult procedure would be running the wire as a result of a conduit tube to the outlet box. Right here you would absolutely need a GFCI outlet with a cover. Make confident that the conduit and the box are securely connected to the wall. Any wiring running outdoors the developing needs to be secured with clips each and every couple of feet. The other key wiring difficulty I see is employing the incorrect junction box, particularly with no cover.

Putting globs of silicone appears to be the prevalent remedy to a plumbing leak. The really amazing thing is that most plumbing parts which need to be replaced for a leak are not really that expensive, but here is the catch, you need to buy the correct part. If you know the manufacturer of your fixture, obtaining a replacement aspect is a lot less difficult, but I have observed that heading to a very good hardware retailer you will come across some a single to help you with obtaining the ideal part. Gaskets, seals, and o-rings gradually fail with age. Nonetheless, often pipes or tubes are knocked about producing damage to their threads or to their walls. In this situation you will want to get a new one particular. Some mysterious leaks in the bathroom are from the wax seal under the toilet. Trying to make some aspect that seems to be comparable match and do the task will lead to far more troubles.

About silicone, a single variety of silicone is not often acceptable for every single use. Seem at the labeling to ensure you are finding the product or service that will do the job. The very best products may possibly not be a silicone. There are latex and polyurethane caulks which are far exceptional to silicone for an application. Latex caulks are fantastic for paint work opportunities, and polyurethane caulks are wonderful for outdoor conditions.

Duct tape is not for ducts. If you will need to fix a duct in the attic, use the shiny tape which is meant for this task. Also a duct is not a duct, that means that there are in fact numerous distinct types of duct, so you require making positive that you are installing the proper one for the application. Ducts for diverse uses are not intended to attach every single other.

The previous common error requires fasteners. Screws, nails, and bolts come in various measurements and kinds. There are particular nails for attaching roof shingles, and there are distinct screws for drywall. We like to use what we have on hand (or what we can very easily discover in the garage or shed), than what is the greatest fastener for the career. I have viewed folks nail hinges into the cabinet. What produced it worse was the fact that the nails were as well prolonged, so you could jab oneself with them inside the cabinet. Some hardware stores sell boxes with a variety of fasteners. This is a fantastic offer if you do not want to get a lot of distinct deals. The suitable fastener will make the position easier to do (and undo).

Maybe I must say that all of these blunders arrive down to organizing, planning, and execution errors. Consider about what requirements to occur, in advance of you begin. Then feel about how to correct it if you do need to redo it. (How will they get that nail out of the hinge?) Prepare out all of the methods, and you will be fine.

A professional real estate inspector in Texas, who writes about consumer issues for home buyers and about examining your own home. I also have a background in business management/consulting. I live and work in the Houston area.

Houston Reserve Mortgages need to be handled by an experienced team of experts. We helped hundreds of older homeowners with a Reverse Mortgage.