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| Remodeling |
Energy Star Builders build to certain specifications set by the EPA. A new Energy Star qualified home performs better for the homeowner and the environment thanks to a variety of energy efficient features. Energy savings are based on heating, cooling and hot water energy use and are typically achieved through a combination of building envelope upgrades, high performance windows, controlled air infiltration, upgraded heating and air conditioning systems, tight duct systems and upgraded water heating equipment. Learn more at www.energystar.gov.
Build San Antonio Green is helping its members and the building industry move the practice of green building into the mainstream in San Antonio. The program includes a green home verification and certification program, a variety of green educational offerings, advocacy on green building issues and tools and resources for its members. Build San Antonio Green is a voluntary local green building program that has certified over 150 homes and is a partnership between the Greater San Antonio Builders Association and Metropolitan Partnership for Energy. Learn more by visiting www.buildsagreen.org.
Energy Efficient Mortgages (EEMs) are available for homebuyers purchasing energy efficient homes. EEMs allow buyers to qualify for larger home loans based on quantifiably low monthly energy bills. Ask your lender to explain the EEM products provided by Fannie Mae, Freddie Mac, Federal Housing Administration (FHA) and Department of Veterans Affairs (VA). It is even possible to refinance a home with an EEM to make it more energy efficient. Visit www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm to learn more.
Developing A Realistic Remodeling Budget
Review these simple tips about developing a budget from the National Association of the Remodeling Industry (NARI):
— Determine what you can afford
It may seem obvious, but oftentimes homeowners may expect a remodeling contractor to create the budget for them, which is not a good idea.
Here are some better ways to begin the process:
Keep a reserve
Once you determine how much you can afford to spend on a remodeling job, decrease that amount by 10 percent to 20 percent. This reserve should be put away to cover any change orders or incidental charges accrued along the way, which will prevent a frantic scramble for additional funds at the end of the project.
Keep “change orders to a minimum.”
It is easy for a homeowner to say, “A little more on this fixture doesn’t matter. It’s very little money.” Unfortunately, having that attitude also makes it easy to overextend a prepared budget.
While it’s rare that any remodeling project proceeds without a single change order, homeowners can keep them to a minimum by sticking to their original plans. A change order is a written document detailing any requests to alter, change or remove any items found in the contract or project.
There are three key origins of a change order:
The proverbial, “while you’re at it…”
That phrase can annihilate a budget. While it’s tempting to a homeowner to have his remodeling contractor complete handy work, it’s good to remember that any work not specified in the original contract will have an additional cost attached to it.
Financing
If the job requires financing, shop around for the best terms on the financing, including the interest rate, terms of the pay-out and finance charges. As with any financing agreement, you should calculate the entire cost of interest and charges over the term of the loan.
A home improvement company may offer financing, but this is not necessarily the best option, even though it may seem easy to arrange the financing and the work contract at the same time. Be aware that some contractors will have you sign a credit contract to pay a certain price for the work plus a finance charge, then immediately sell the right to collect on the contract for 20 percent to 50 percent less than the contract price. That usually means you could have gotten the work done for 20 percent to 50 percent less by paying cash or arranging financing yourself.
Check with your bank and credit union to learn about loan programs and interest rates. Ask your real estate agent and insurance agent for mortgage broker referrals and check the business pages in the San Antonio Business Journal and the San Antonio Express News for any advertised promotions from lending institutions.
Build San Antonio Green is helping its members and the building industry move the practice of green building into the mainstream in San Antonio. The program includes a green home verification and certification program, a variety of green educational offerings, advocacy on green building issues and tools and resources for its members. Build San Antonio Green is a voluntary local green building program that has certified over 150 homes and is a partnership between the Greater San Antonio Builders Association and Metropolitan Partnership for Energy. Learn more by visiting www.buildsagreen.org.
Energy Efficient Mortgages (EEMs) are available for homebuyers purchasing energy efficient homes. EEMs allow buyers to qualify for larger home loans based on quantifiably low monthly energy bills. Ask your lender to explain the EEM products provided by Fannie Mae, Freddie Mac, Federal Housing Administration (FHA) and Department of Veterans Affairs (VA). It is even possible to refinance a home with an EEM to make it more energy efficient. Visit www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm to learn more.
Developing A Realistic Remodeling Budget
Review these simple tips about developing a budget from the National Association of the Remodeling Industry (NARI):
— Determine what you can afford
It may seem obvious, but oftentimes homeowners may expect a remodeling contractor to create the budget for them, which is not a good idea.
Here are some better ways to begin the process:
Keep a reserve
Once you determine how much you can afford to spend on a remodeling job, decrease that amount by 10 percent to 20 percent. This reserve should be put away to cover any change orders or incidental charges accrued along the way, which will prevent a frantic scramble for additional funds at the end of the project.
Keep “change orders to a minimum.”
It is easy for a homeowner to say, “A little more on this fixture doesn’t matter. It’s very little money.” Unfortunately, having that attitude also makes it easy to overextend a prepared budget.
While it’s rare that any remodeling project proceeds without a single change order, homeowners can keep them to a minimum by sticking to their original plans. A change order is a written document detailing any requests to alter, change or remove any items found in the contract or project.
There are three key origins of a change order:
- The homeowner initiates one because they have changed their mind about the design or a specific product.
- Unexpected damage was found (termites, for example).
- A code violation is uncovered that affects the project.
The proverbial, “while you’re at it…”
That phrase can annihilate a budget. While it’s tempting to a homeowner to have his remodeling contractor complete handy work, it’s good to remember that any work not specified in the original contract will have an additional cost attached to it.
Financing
If the job requires financing, shop around for the best terms on the financing, including the interest rate, terms of the pay-out and finance charges. As with any financing agreement, you should calculate the entire cost of interest and charges over the term of the loan.
A home improvement company may offer financing, but this is not necessarily the best option, even though it may seem easy to arrange the financing and the work contract at the same time. Be aware that some contractors will have you sign a credit contract to pay a certain price for the work plus a finance charge, then immediately sell the right to collect on the contract for 20 percent to 50 percent less than the contract price. That usually means you could have gotten the work done for 20 percent to 50 percent less by paying cash or arranging financing yourself.
Check with your bank and credit union to learn about loan programs and interest rates. Ask your real estate agent and insurance agent for mortgage broker referrals and check the business pages in the San Antonio Business Journal and the San Antonio Express News for any advertised promotions from lending institutions.
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With three military installations in San Antonio, you’ll ...
