Hiring A General Contractor: Top 10 Questions to Ask Before You Decide
By Kathryn Haley
Don’t ever assume you know the answers. What you expect contractors to do and what they actually do can be miles apart. Ask the questions before you hire them; put their answers down in writing in front of them and you stand a much better chance of your renovation going well.
So here we go. In no particular order, the top 10 questions to ask before hiring your contractor.
1/ How long do you estimate the job will take?
It is important you understand this is an estimate, however, you want the contractor to know they are being held to a reasonable timeline.
2/ What kind of insurance do you carry?
When hiring a contractor or sub-contractor, make sure each carries public liability and property damage insurance. Do your homework by taking the time to check with the insurance agency to verify that the policy is still effective and will be throughout the duration of your renovation.
3/ How big is your crew?
If they work alone the job will take longer than if they have a crew of 2 or 3 guys. You should insist on licenced plumbers and electricians for those areas of the job. Also ask if they are all employees or do they use sub-contractors. They will have more control over employees.
4/ Will YOU be on site every day?
Home owners tend to assume the general contractor will be on site at all times. Rarely is that the case.
5/ Who is responsible for getting permits?
This one will flush out those contractors who don’t want to get permits. Although it may make the job go faster and save a little money, you as the home owner run a huge risk if the workmanship is faulty and there are no permits.
6/ What are the names of 3-5 past clients I can contact?
Speaking with past clients, and if possible, seeing the work done, is very important. I recommend seeing the work since your expectation of finish quality may be different then the person you are speaking with.
7/ What is not included in the quotation that you know I will need?
This one flushes out those contractors who are trying to low ball the quote to get the job, and then come back to you later and add things in. Unforeseen things come up in renovations, however, too many contractor are leaving out things they know you will need just to get the job.
8/ Do you belong to any professional organizations?
They will have more accountability if they are members of professional organizations. These could include:
Home Builders Association
Better Business Bureau
Chamber of Commerce
NKBA (National Kitchen and Bath Association)
9/ What is the schedule of work?
What you are looking for here is an approximate timeline for each sub trade; to find out if there will be people on site every day; what hours they will work; when there will be lulls in the progress. Home owners are often surprised to find out the workers want to start at 7:30 or 8:00 am or work on the weekends.
10/ What is the best way to get in contact with you?
Determine if email, text or calling is the best form of contact. Communication breakdown is the number one source of renovation frustration. Also determine if they are available after business hours to discuss concerns.
So there you have it; the top 10 questions to ask before hiring a contractor. Getting the answers to these questions will give you the clarity you need to make the best choice for you.
Remember, the contractor isn’t the enemy. If both parties are clear of the expectations from the beginning of the project, you stand a much better chance of having a successful renovation; and ultimately that is what you and your contractor want.
Can you think of any other questions to ask? Share them with us in the comments below!
Happy Renovating!
How To Improve Your Credit Score
By Karen Boies
Your credit score is a judgment about your financial health, at a specific point in time. It indicates the risk you represent for lenders, compared with other consumers. There are many different ways to work out credit scores. The credit-reporting agencies Equifax and TransUnion use a scale from 300 to 900. High scores on this scale are good. The higher your score, the lower the risk for the lender. Lenders may also have their own ways of arriving at credit scores. In addition, lenders must decide on the lowest score you can have and still borrow money from them. They can also use your score to set the interest rate you will pay.
Which parts of a credit history are most important?
35% – Your Payment History
30% – Amounts You Owe
15% – Length of Your Credit History
10% – Types of Credit Used
10% – New Credit
Top 5 tips for improving your credit
1. Pay your bills on time.
Pay your bill in advance of the due date, ensuring it reaches the creditor before the payment is due. Pay off debt, don’t move it around. Owing the same amounts, but having fewer open accounts, can lower your score if you max out the accounts involved.
2. Contact your creditors as soon as you know you will have a problem paying bills on time.
Try to work out a payment arrangement and negotiate with them to keep at least a portion of the late notations off of your credit reports.
3. Reduce the number of active credit cards to 2 or 3 accounts.
Revolving credit includes department store cards, grocery store cards and gas cards. Establish a minimum of 2-3 trades with good repayment history for 24 months.
4. Keep account balances within 50% of the available credit limit.
Keep your credit card balances low. High debt-to-credit-limit ratios drive your scores down.
5. Pay or satisfy all outstanding collections and judgements.
It is advisable to avoid applying for credit and having your credit report checked unless you have a genuine need for credit. The risk to consumers with a lot of activity on their credit report over a short period of time is that a lender may interpret this as a sign that you are in financial difficulty or taking on more debt than you can manage. Fortunately most scoring systems will not penalize you if they determine that you are shopping for the best rate on a particular product like a mortgage.
Your credit score is important and you need to take action to make sure that you will be able to borrow money when you need it. If you currently have a low credit score don’t be discouraged. Take action. Start doing the things that will cause your credit score to improve. Be consistent and before you know it you will have better credit.
Karen Boies is a mobile mortgage planner in Greater Vancouver. If you have any questions about your credit score or about getting a mortgage, please call Karen at 604-726-9550 or email at Karen@mortgagecentrecitywide.com
Ready to Buy? Advice From A Realtor
By Colette Gerber
Ladies, did you know that it’s a Buyer’s market? And did you know about 35% of people buying their first home are single women? As a group we (yes, I too am single) have more disposable income than any other time in history. After you’ve made the decision to buy, the first step should be to obtain mortgage pre-approval.
Lenders are beginning to recognize the power women wield with their disposable income and are willing to lend generously to single females. Personally, I prefer to use a mortgage broker since they will shop a number of lenders to ensure you get the best possible rate without gender bias. Mortgage pre-appproval gives you clout when it comes time to make an offer to purchase. Knowing that you have financing in place, sellers will take your offer seriously. As well, the pre-approval letter-which you should get in writing- establishes how much you can spend on real estate. This ensures you are looking in the correct price range.
In the current Buyer’s market there is a larger inventory of real estate than there are people wanting to buy. As a Buyer, this gives you the opportunity to look at multiple properties and give some thought as to what you like. For most properties, multiple offers are not currently a concern. This is good news since it takes the pressure off having to make a quick decision. However, having said that, if you find something you really like you should have your Realtor write an offer as soon as possible. If the property is that good, chances are others will feel the same way and you don’t want to take a chance and lose the property.
Let’s talk about Realtors for a moment. Did you know that as a Buyer it doesn’t cost you anything to work with a Realtor? Realtors get paid by the Seller only when a deal completes. Working with a Realtor can save you time, money and inconvenience. Time: they search the listings every day to see if anything suits your criteria so you don’t have to spend time on the computer. Money: when it comes time to negotiate, they will do everything they can to ensure you get the best possible purchase price. Inconvenience: they know the pitfalls a Buyer can encounter so a good Realtor will stay involved in the entire buying process, until they hand you your keys. Women know the importance of listening. They understand you want great bathrooms, need closet space to accomodate your shoes and that you don’t care if the floor is ¼” or ½” real or faux wood. I encourage you to work with a female Realtor who “gets” what you want…..
Colette Gerber is RE/MAX Realtor who works anywhere in the Lower Mainland that the business takes her. She was recently awarded her Accredited Buyer’s Agent designation, joining the 1 ½% of BC Realtors with this prestigious accreditation. You can contact Colette by visiting www.colettegerber.com
5 Things to Know Before Buying a Condo
A lot of prospective home owners across the country are today choosing condominiums over private homes for a variety of reasons, foremost among which being the fact that generally, they are a whole lot cheaper to buy and maintain than private homes. That said, there are a number of factors that you should keep in mind, before finalizing the deal on the condo you have laid your eyes on.
Reputation Of The Developer:
This is very important, and you must put in requisite effort to find out about the reputation of the developer in question. Has the individual or the company developed other properties as well, in and around the area? What do owners of those properties have to say about the developer? Further, what is the general market opinion about the developer? This should really not be too difficult for you to ascertain; usually, a few phone calls or visits to brokers in and around the area should give you a good idea.
Condition Of The Condo:
The livability as well as the resale value (if you are looking to buy the condo essentially as an investment) of the property would depend to a great extent on the condition of the condo itself. Remember that a very cheap property may not necessarily make a good buy or a good investment, especially if it is in relatively dilapidated condition. This aspect gets exemplified if the entire building itself is in poor shape and in desperate need of repair. The perceived value of your condo will come down that much more, even if the condition of the condo from inside is supreme. Therefore, make sure you do a thorough inspection not only of the condo itself, but also of the building as a whole, before you finalize your purchase deal.
Percentage Of Rented And Owned Condos
This factor is immensely important, as it will have a major say in the market value of your condo; usually, higher the percentage of owned condos in the complex, higher is the market value. So, assuming that out of 40 condos in a complex, if 30 are owned and 9 are rented, the 40th condo that you purchase will invariably have a better market value than the same in another complex, with the reverse, i.e. 30 rented and 9 owned – even with all other factors remaining constant.
Past Performance Of The Condominium Complex:
This is yet another factor that you must try and do some research on; if condos in the complex have been bought and sold in the past, what have the going prices been like? Also, how do those prices fare, with that of other similar complexes in the area? This will give you a very good idea of the feasibility of investing in the condo complex that you have laid your eyes on.
On a similar vein, you would also like to find out about the time frame that each condo on an average, takes to sell, in the complex. If the general consensus is that condos take a lot of time to sell, you might again want to have a rethink on the purchase.
Maintenance Fees:
As a prospective condo owner and dweller, it is quite likely that you would already be aware of the maintenance fees that are required to be paid by the dwellers of the complex in question. However, a lot of such individuals often make the mistake of not cross-checking beforehand, what exactly do those maintenance fees include – and what do they exclude? You don’t do that!
Broadly, these factors should give you an excellent idea of the aspects to keep in mind, while contemplating the purchase of a condo; together, they remind us that the decision to purchase a house should not just be driven by emotions, but more so by practicality. Unfortunately, a lot of us simply get swayed by irrelevant, extraneous factors that, in the long run, often end up proving to be costly mistakes.
Brett Meade is the Seattle Condo specialist for NW Home Brokers. He sells Downtown Seattle condos and condos in Belltown, Queen Anne and Capitol Hill.
Article Source: http://EzineArticles.com/?expert=Brett_C._Meade
http://EzineArticles.com/?5-Things-to-Know-Before-Buying-a-Condo&id=4129014
HST and Its Impact on Buying & Selling Real Estate
By Nawel K Seth
In Ontario, Provincial Sales tax has been 8% and the federal sales tax i.e. GST 5%, thus a total tax of 13%. Effective July 1, 2010, these two taxes will be combined and a new Harmonized tax shall be implemented. This harmonized tax will be 13%. Many services that were exempt of either of the taxes will now attract both taxes, thus making many products and services more expensive.
Buying and selling real estate will not escape this onslaught. Even though, there is no HST payable on the purchase or sale of a resale home, many services associated with the buying and selling will now attract increased taxation. Example of the increased costs is as follows:
- Legal fees
- Real Estate fees /commissions
- Moving costs
- Home Inspection costs
- Mortgage Insurance premiums
- Condo Management fees
- Concierge services
- Utilites
The condominiums fees are exempt from the HST, though they will also go up as many of the components that make the maintenance fee, will attract HST. The residential rents are exempt from HST but the renters will not escape HST altogether. As the costs of the landlords will go up, they are likely to pass these costs to the consumers. It is estimated that rents will go up by 2.5% to 3% because of the new HST.
The commercial rents will be subject to HST, but these taxes will be treated as flow through input credits. There is a complex formula for HST on new homes. Homes under $400,000 are exempt from the additional tax. On new homes priced up to $400,000, there will be rebate of up to $24,000, which is equivalent to the 75% of the 8%, of the provincial portion of the tax. This rebate in almost all cases will be assigned to the builder and is built in the price of the property.
A resale property that has been 90% renovated will be treated as a new home and will be subject to HST. Farm land will also be subject to HST, if it is sold alone, however, it may be treated differently if it is sold as a part of the farming business.
No HST shall be payable if a personal building lot is sold, however, if it is part of the commercial activity of the seller, HST will apply. There are complex calculations for calculating HST for properties under construction and the transitional rules that apply. It is recommended that the reader contact the Canada Revenue Agency (CRA) for detailed explanation: For Personal property and services – 1 (800) 959-5525 For Real property – 1 (800) 959-8287.
For further details, you may wish to visit their website www.WeListFree.net or contact them at 416-630-1999 / 905-660-7999 / 1-866 890 1999 or by email biztrackers@hotmail.com. Author: Nawel K Seth, MBA – The author, Nawel K Seth is a veteran in the field of Real Estate & mortgages, and is a regular contributor of articles on the web. He holds multiple post graduate degrees from prominent North American universities. He has over 40 years diversified field experience and a distinguished career as a businessman, and a marketing consultant. This article briefly covers different kinds of legal instruments / documents in the field of real estate.
Article Source: http://EzineArticles.com/?expert=Nawel_K_Seth
http://EzineArticles.com/?HST-and-Its-Impact-on-Buying-and-Selling-Real-Estate&id=4319243
Conquering Fear: An Independent Woman’s Story
By Angie Oliveira
I’d like to think that I’m an independent person, somebody who will try to do things once before asking others for help. I guess this is the stubbornness in me, but I firmly believe that you have to learn to take care of yourself before you let others take care of you.
I’m always dispensing this advice to my friends, my married sisters and especially my mom, who I think relies heavily on my dad. My relationship with my boyfriend is no exception. I bought a house before so I could live on my own, and the boy moved to England to pursue his dream to teach aboard.
Since then I’ve learned to kill ugly bugs and sleep in an old creaky house. I rarely play the damsel in distress act because I hate to appear weak, but there are certain things that I just can’t deal with, specifically mice.
Mice issues are inevitable especially when you live in an older neighbourhood in Toronto and are doing some kind of renovation. The problem first reared its ugly head when I started to gut the basement.
At that time the tenant upstairs had a huge amount of mice in her apartment and the current noise electronic rodent repellent devices weren’t just cutting it. It really didn’t affect me since I was still living in my parent’s cushy suburban home.
A rodent expert was called and the mice issue appeared to have dissipated by the time I moved in. The boy was living with me for 3 months and not a mouse in sight; that was of course until he moved abroad.
Once I found 2 mice stuck on glue traps in the basement. I called my dad in a panic who instructed that I had to cover them with a bucket just in case they broke free. I had to give myself a pep talk just to muster enough courage to do that. After a couple of “I can’t do this,” in a tone that should only be reserved for six-year olds, I finally screamed and quickly threw the bucket over the traps.
My parents cannot understand why I would be afraid of such a small thing as a mouse. My answer is exactly the same as to why my mother won’t drive on the highway, or why my father won’t stand in a body of water that is more than knee deep. It’s our phobia.
My dad is quick to remind me that mice are tiny creatures who “will never run to you, they will always run away from you”. Yes, I understand they are harmless, but they still creep the hell out of me.
I once again had to face my fear. I woke up to the sound of a mouse that was caught in a black box trap sitting in the corner of my bedroom.
It was 1:30am, I panicked and I had a “why-the-hell-did-my-boyfriend-leave-me?” moment. Yes, this so-called independent person is now wishing her boyfriend was around to help her. What else was a girl to do, so I called my dad. I had two options, cover the trap with a bucket to muffle the sound or move to the next room.
Realizing the noise wasn’t going to end, I did what any normal independent girl would do in my situation. I got up, moved to the next room and went to bed with my fingers in my ears.
I can deal with a mice problem, but it doesn’t mean I have to face it head on.
When does my boyfriend come back?
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