5 HOUSE HUNTING HACKS FOR NEW BUYERS

So you want to buy a home and you are a first time buyer.  Where do you begin?  Here are 5 House Hunting Hacks to making your first time buying experience more productive.

1. Get pre-approved for a mortgage before you start your house hunting search.  It goes without saying that the first step is always the most important and as a first time home buyer, the most important thing to know is, How much house can I buy?  Taking the time to get pre-approved for a mortgage will narrow your field of focus for your home search.
2. Determine what are your "Must have" vs. your "Want to have".  Be honest; be realistic; and  be sensible in compiling your list of "have to haves".  An unrealistic list of "want to have" for your price range creates frustration and disappointment in the process.  What are you willing to compromise on or even scratch from your list to find the home of your dreams?
3. Research and choose a neighborhood where you want to live.  What special qualities does a particular neighborhood offer you?  Will it make for an easy commute to your place of employment?  Is there a historic pull to a style of home or neighborhood?  Is it the ease of access to shops, cultural events or a particular school?  
4. Pick a house style you love and stick with it.  Are you a little old fashion or are you more contemporary?  Do you like a ranch style home or are you a two story person?  Whatever your house style may be stick to it when searching for your ideal home.
5.Document your home visit.  Document your home visit by either taking notes regarding your overall impression of each home visited or taking photos with your cell phone or camera.  Weigh the pros and cons against your "must have" list.  Don't buy until you find the home that meets most if not all your must haves.

Make your first time house hunting experience a highly productive one by following these 5 Housing Hunting Hacks.

  

CHECKLIST FOR HIRING A CONTRACTOR (Part 2)

Hiring a contractor to remodel or renovate your home is always a challenge.  You may have watched a television program where you saw a homeowner hire a contractor only to have shoddy or incomplete work done.  Being cautious is natural and that is why you have this handy checklist for hiring a contractor.  The last blog dealt with three specific items for any homeowner to consider when interviewing contractors for their home project.  In Part 2 of Checklist for Hiring a Contractor, we'll look at three additional items and offer 6 bonus tips.

It is important to have a contract in writing, but it is equally important to understand what is not included in the contract.  Look for hidden fees.  Watch out for contractor bids that include phrases like "cost plus" or "time and materials" pricing models with no caps on maximum budget.  Be upfront about your improvement budget and make sure you and your contractor stay on track financially.

Don't be in a hurry to accept the first bid that comes your way.  Get multiple offers on the scope of work to be completed.   Reviewing bids from at least three different contractors will give you a reasonable comparison of what to pay in your area.   A word of caution, homeowners should always be on the lookout for contractors who are ready to work and start immediately.  There is a reason they are available; the preferred contractors are usually engaged in other projects and will schedule in your project.

Trust your instincts.  Here are a few red flags to watch out for when working with a contractor.

   * A contractor refusing to provide a written contract
   * Requests for you to pay in cash or pay the entire cost upfront
   * The contractor not having a business address
   * A contractor unable to pull a job permit

If you have any doubts or uneasy feelings as you review the contract hiring tips, proceed with caution.  More than likely your feelings are justified and you should be working with a contractor you can trust.

BONUS TIPS

1. Agree on a communication plan with your contractor and how often.
2. Establish ground rules with the workers as far a parking, bathroom use, or any other issue that may come up during the project.
3. Discuss issues with the contractor as quickly as possible to avoid major roadblocks.
4. Maintain an organized folder to track all records, warranties and payments receipts.
5. Schedule the final walk through to ensure the job is complete and confirm that all subcontractors and suppliers have been paid before making the final payment.
6. Request a receipt marked PAID IN FULL for your records when final payment has been made.

CHECKLIST FOR HIRING A CONTRACTOR (Part 1)

Last week's blog entitled "What to look for when hiring a contractor" was the introduction for today's topic.  Trust you had a chance to read it, if not, you'll find it below.

When it comes to hiring any trades person to do work for you your first question might be, "Where do I begin?"  

The first step in hiring a good contractor is to start with referrals.  Ask friends, neighbors, research professional organizations and references and reviews from past clients.

If you live in an area where a number of projects are underway take down the contractor's information and begin to research them online or visit their website. If you see their presence at several locations in your neighborhood it is a sign consumers are satisfied with their work and people are happy to refer them.

The next step is to ask the right questions.  Remodeling a home is time consuming and a costly process so don't hesitate to ask questions, the right questions.  You need to be assured the contractor you do business with has proven themselves in the past and will be there if you need them in the future.  Ask for tangible proof of their financial stability and longevity such as proof of business license, supplier reference letters and customer references and bank letter and insurance certificates.

The third point on your checklist is just a crucial as the ones above - put everything in writing.  How do you protect yourself, by putting the scope of work in writing so that both parties have a clear and thorough understanding of the work to be completed?  The contract should be in writing, signed and dated and should include:

  *Everything you expect from the job, including promises or guarantees made verbally.
  *Scope or work and costs
  *Start date and end date
  *Establish payment schedule
  *A list of suppliers and subcontractors
  *Confirmed contact information and permanent business address
  *Confirmation of licensing, insurance and all necessary permits.
  *Consequences of missing deadlines, going over budget or defaulting on the contract.

If any of the contract is unclear or confusing, ask questions and don't sign a contract or make any advanced payments until you fully understand its terms.

WHAT TO LOOK FOR WHEN HIRING A CONTRACTOR

You need to have some work done on your home or you are looking to hire a contractor to build your dream home, what should you look for when hiring a contractor to touch my biggest investment?

According to Mike Holmes, "Before you start flipping through the Yellow Pages and calling every contractor in the book, let's get your expectations on the right planet.  You should expect that in this day and age, skilled contractors are in high demand: good contractors are very, very busy."

Here are five qualities you should look for when hiring a contractor.

1. Experience - a good contractor is a tradesman with experience. It is imperative that they understand the scope of work you want done.  Even if they utilize subcontractors they are responsible for scheduling the work and assuring that the subcontractors complete their tasks on time and with the highest level quality.

2. Reputation - when you get good service it is always easier to talk about it to your friends, relatives or co-workers.  The reputation any professional has is directly related to the quality of work and service they perform.  In addition to "word-of-mouth" it is always beneficial to check with the Chamber of Commerce and the Better Business Bureau.

3. Integrity - a contractor is only good as his/her word.  They never over charge a customer, do what they say they will do, stand behind the quality of their work and will they correct any situations in a timely manner.

4. Flexibility - you hire a contractor not only for their skills, but their ability to alter the schedule to complete the work.  You need a contractor that is able and willing to take on every aspect of your project within the time frame you both agreed upon.

5. Listening Skills - you're the boss!  When you talk to the contractor tell them exactly what you want and why.  It is not their job to convince you to do it another way unless there are structural issues or it would be cost-prohibitive.  Their job then is to explain why it cannot be done and offer alternate solutions that will accomplish the same goal.

If you have other qualities you look for in a contractor and would like to share them, leave a comment.