general question re: home additions

[albionmoonlight]

We are looking for a little more space, but we like our neighborhood and school district.

Having talked to a few realtors, we are now leaning toward adding some space onto our house and making some general renovations instead of moving.

We are still very early in the process.

As we begin this journey, what questions should I be looking to ask potential contractors? What are common ways that people get financially screwed in the process? If you've done a similar things before, what things do you know know that you wish you knew then?

Any and all advice, specific or general, is welcome.

[Swaggs]

Probably a lot of directions that you can go in here, but a few thoughts (my father has had a home contracting/renovating business for 40+ years and I spent some time working for him):

Consider whether you are trying to add property value versus what you need for your family right now. Things like bedrooms and bathrooms add value, but you may just need more room. The realtors on the board can probably help you more on this aspect.

I think there are a handful of ways to get financially screwed when you have access to a contractor:

One is to make additions and/or not be decisive on your finishes and/or details of your addition. Adding carpet versus adding hardwood or tile flooring, wood finishes versus painting, drywall ceilings versus drop ceilings, etc. Know what you want before you propose ideas to your contractor. Think about how you want the exterior to match up, as well (you don't want your new addition to have bright new paint and then have to see it contrast with your drab old, existing paint or to have dimensional roofing shingles on the new part and three tab on the old part, etc).

Another that commonly happens is that having access to a competent contractor can make you want to get other problems in your house "fixed." This is something I have absolutely noticed from both ends of the spectrum (from working and from having the contractor in your home). Those lights you have been thinking of replacing? That room your wife has been wanting you to paint? Some tile in the bathroom? The electrician/painter/tile installer is here anyway, so why not? This also happens when you plan to do some of the work yourself, but you then decide to have them finish those projects. That stuff adds up. My wife almost always adds a list of things to do when we have an electrician or plumber over. If you are sticking to a planned budget, keep your eye on the ball.

The other one that comes to mind is to "schedule" payments and make sure not to pay too much up front. Be reasonable and willing (if it is a big job) to pay for materials and some labor up front, but many contractors have a lot of jobs going. If they get paid for one, they sometimes move on to others to keep the cash flow coming in. In my experience, most are well intentioned but they can often get overextended and have your house/life disrupted for a long period of time. If you think they are going to be on your job for 6 weeks, pay them a percentage up front and then split the remainder up, with a payment every two weeks or so. Get this part in writing when they are bidding your job (again, if the job is big enough).

Other tips:

Don't overplay your hand negotiating price. In my area, at least, it is really hard to get good contractors due to the low interest rates and the amount of building going on keeps the competent ones busy. If you are a pain in the ass, it can be hard to get someone.

Find someone that is licensed and insured. Have them show you their work. Sit down with them and let them know what you are envisioning for your space. Talk to friends and neighbors. Don't work with a friend.

If you can afford it, add some "unfinished space" to the project. That gives you potential to add value to your home later (if you choose) and gives you storage space in the meantime.

[digamma]

Final payment should be due on final walk through/completion of the job. If you owe them something, they'll take care of the final punch list to get paid.

Prepare for delays. They are inevitable. As long as you are getting reasonable service and remaining informed, then you kind of have to suck it up and live with the delays.

Get an itemized estimate for the job or jobs with each line item being a specific project or phase of the project. This becomes important in deciding what you're actually going to do and reconciling costs later. Or for changes that also crop up as they no doubt will.

Make sure your estimate or bid is clear up front on what you are providing in terms of materials and what is included. We had one or two bids that looked a lot lower as a headline number, but then when you dug and took a look at the difference in providing materials it was a very different story.

Don't underestimate the value of a good designer (or architect) and their ability to work well with and communicate with your contractor.

[revrew]

Be aware that home building is one of the most stressful events/processes that married couples go through. Statistically proven. Not as high as death of a child or infidelity, but still a divorce-level event. And I think it applies to renovations/adding on, too.

Expect disagreement. Expect disillusionment. Expect disappointment with how you each handle this. One is going too fast, the other too slow; one is advocating spending too much, the other too little. One envisions sacrificing feature a for feature b, and the other can't imagine why you would ever sacrifice feature b - what's wrong with you? Who are you?

Talk about it now, before the hammers and saws get started. Don't let it catch you by surprise.

[stevew]

Obviously Catch a Contractor is a reality show but consistently people get screwed by paying way too much of the bid up front. you basically gotta give these people a carrot to keep coming back. Also get multiple bids.

[Mizzou B-ball fan]

Originally Posted by revrew

Be aware that home building is one of the most stressful events/processes that married couples go through. Statistically proven. Not as high as death of a child or infidelity, but still a divorce-level event. And I think it applies to renovations/adding on, too.

Expect disagreement. Expect disillusionment. Expect disappointment with how you each handle this. One is going too fast, the other too slow; one is advocating spending too much, the other too little. One envisions sacrificing feature a for feature b, and the other can't imagine why you would ever sacrifice feature b - what's wrong with you? Who are you?

Talk about it now, before the hammers and saws get started. Don't let it catch you by surprise.

I'm getting ready to start two construction projects right now. Doing a basement renovation at home and adding two new floors to the winery.

I'd echo his statements as my boss at home is also the president (and boss) at the winery. My suggestion to avoid conflict is to really focus in on 2-3 things that you feel that you have to have for the project. Then, outside of that, find a good contractor that will hold the budget and allow your wife to select everything else in conjunction with the builder as long as it stays within $XX,XXX budget. As mentioned, there's going to be some hiccups, but I can tell you from previous experience that your wife will be far less annoyed if she's being empowered to make most of the decisions while you still get what you REALLY feel you want.

[Desnudo]

If you want a contractor to manage your project, and you absolutely should, expect to pay them a 30% fee on top of renovation costs. Your cost will be higher, maybe more like 50-60% markup, if you go with a large company vs. an independent operator.

Also, what about design? Do you want someone to guide you there? I think it helped my wife and I make decisions a lot more amicably and quickly. I would go on Houzz and Angie's List as a start.

Definitely get at least three estimates as you'll find they are all over the map depending on their overhead model (large companies have to pay for space and sales staff).

[CU Tiger]

FYI I have a good friend who is a GC who specializes in home additions and remodels. He is in Greenville but has worked all over NC.

And another very close friend is a residential architect based in Raleigh. She is amazing. Amazing. I cant recommend her enough. If you are interested in either contact Id be glad to provide an intro.

The contractor is a solid 7/10 (which is insanely high in home contractors given my picky nature) the architect is a solid 12/10 in terms of customer service.

Swaggs nailed a lot of it.

Make sure you get permits. make sure you see the permits and plan review before work begins. NC is a picky bitch. Worst case scenario work starts illegally and your house is condemned pending review. You have to move out. I've seen this. Interestingly enough it was my electrical permit which triggered the look into seeing the construction permit was never pulled.