Time for Some Home Remodeling

The boom in home renovations drives current innovations on home products and services. Home owners change the look of their homes after seeing damages or after realizing the need for more space. But whatever their reasons for renovations are, finding the perfect finance method, product and service, and contractors should be of greatest consideration.

Economists believe that despite the faltering stock market and rising mortgage rates, home building will continue since increasing home prices allow the reinvestment of the homeowner’s equity. This has resulted to upscale renovations and expansion of home remodeling businesses to meet the market’s demand for innovative projects.

What are the “in” looks of homes now?

  • Open Kitchen: a design which incorporates the kitchen into the overall dining area, den, or living room. Space is also more efficiently utilized.
  • Lavish Bath: some rooms are sacrificed just to have a bathroom with hot tub, dual sinks, separate shower, bidets, heated towel racks, marble floors, and marble countertops and floors.
  • Home Office: brought about by people who prefer working from home and innovations in electronic communications.

Financing renovations could be through home equity loans, second/refinanced mortgages, and home improvement loans from credit unions, banks, and other lenders.

Home building innovations are accompanied by higher costs. But in choosing a reputable contractor, you better be careful for there are lots of home improvement scams nowadays. Some cases include providing unsatisfactory service after receiving full payment, contractors who never show up or disappear after starting the job and never finish the job, and contractors who do not meet what is in the building code.

American Financial Services Association (AFSA) has released guidelines for financing members to wait for a signed certificate from the contractor and homeowner on satisfactory completion of the job before releasing full payment.

The best way to avoid home rebuilding problems is to have a written contract. This protects both the homeowner and the contractor.

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