5 Essential Questions to Ask Before Hiring a Contractor. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.
You're ready to remodel but you want to make sure you get the best contractor for the job. Here's what to ask the candidates before you decide.
A local contractor with a reputation to uphold is a better option than one that has to commute from far away. Image: John Lund/Marc Romanelli/Getty Images
5 Essential Questions to Ask Before Hiring a Contractor. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.
For all of the excitement of choosing plumbing fixtures, cabinets, and tiles for a remodeling project, the most important decision you make won't involve color swatches or glossy brochures. It's the contractor you pick that makes or breaks the job. That choice will determine the quality of the craftsmanship, the timeliness of the work, and the amount of emotional and financial stress the process puts on you. To make sure you're getting the best contractor for the job, here are five questions to ask the candidates.
5 Essential Questions to Ask Before Hiring a Contractor. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.
1. Would you please itemize your bid?
Many contractors prefer to give you a single, bottom-line price for your project, but this puts you in the dark about what they're charging for each aspect of the job. For example, let's say the original plan calls for beadboard wainscot in your bathroom, but you decide not to install it after all. How much should you be credited for eliminating that work? With a single bottom-line price, you have no way to know.
On the other hand, if you get an itemized bid, it'll show the costs for all of the various elements of the job-demolition, framing, plumbing, electrical, tile, fixtures, and so forth. That makes it easier to compare different contractors' prices and see where the discrepancies are. If you need to cut the project costs, you can easily assess your options. Plus, an itemized bid becomes valuable documentation about the exact scope of the project, which may eliminate disputes later.
The contractor shouldn't give you a hard time about itemizing his bid. He has to figure out his total price line by line anyway, so you're not asking him to do more work, only to share the details. If he resists, it means he wants to withhold important information about his bid-a red flag for sure.
2. Is your bid an estimate or a fixed price?
Homeowners generally assume that the bid they're seeing is a fixed price, but some contractors treat their proposals as estimates, meaning bills could wind up being higher in the end. If he calls it an estimate, request a fixed price bid instead. If he says he can't offer a fixed price because there are too many unknowns about the job, then eliminate the unknowns.
"Have him open up a wall to check the structure he's unsure about or go back to your architect and solidify the design plans," says Tampa, Fla., attorney George Meyer, who is chair-elect of the American Bar Association's Forum on the Construction Industry. If you simply cannot resolve the unknowns he's concerned about, have the project specs describe what he expects to do-and if he needs to do additional work later, you can do a change order (a written mini-bid for new work).
3. How long have you been doing business in this town?
A contractor who's been plying his trade locally for 5 or 10 years has an established network of subcontractors and suppliers in the area and a local reputation to uphold. That makes him a safer bet than a contractor who's either new to the business or new to the area-or who's planning to commute to your job from 50 miles away.
You want to see a nearby address (not a PO box) on his business card-and should ask him to include one or two of his earliest clients on your list of references. This will help you verify that he hasn't just recently hung his shingle-and will give you perspective from a homeowner who has lived with the contractor's work for years. After all, the test of a quality job, whether it's a bluestone patio or a family room addition, is how well it stands the test of time.
4. Who are your main suppliers?
You've found a few potential contractors, you've talked to the happy former clients on each of their reference lists, now it's time for one additional bit of homework: talking to their primary suppliers. There's no better reference for a tile setter, for example, than his preferred tile shop; for a general contractor than his favorite lumberyard or home center pro desk; for a plumber than the kitchen and bath showroom where he's on a first name basis.
The proprietors of these shops know a contractor's professional reputation, whether he has left a trail of unhappy customers in his wake, if he's reliable about paying his bills-and whether he's someone you'll want to hire. The contractor should have absolutely no qualms about telling you where he gets his materials, as long as he's an upstanding customer.
5. I'd like to meet the job foreman-can you take me to a project he's running?
Many contractors don't actually swing hammers. They spend their days bidding new work and managing their various jobs and workers. In some cases, the contractor you hire may not visit the jobsite every day-or may not even show himself again after you've signed the contract. So the job foreman-the one who's working on your project every day-is actually the most important member of your team.
Meeting him in person and seeing a job that he's running should give you a feel for whether he's someone you want managing your project. Plus, it gives the general contractor an incentive to assign you one of his better crews since you're more likely to hire him if you see his A Team. If the contractor says he'll be running the job himself, ask whether he'll be there every day. Again, he'll want to give you a positive response-something you can hold him to later on.
It's not only the answers to these questions that will help you judge potential contractors-it's the way they answer them. Were they easy to talk to and forthcoming with details or did they hem and haw and make you ask more than once? Difficulty communicating now means difficulty communicating on the job later. But clear, timely and thoughtful responses-combined with terrific references, great completed work that you've seen, and a smart take on your project-may mean you've found the right pro for your job. By: Oliver Marks.
5 Essential Questions to Ask Before Hiring a Contractor. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.
The Top 5 Contractor Scams and How to Avoid Them. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.
The best way to protect yourself against unscrupulous contractors is to be alert to the warning signs of these common home-improvement scams.
If a contractor tells you he doesn't need a permit, that's a red flag. Permits are required for all significant construction jobs. Image: PhotoAlto/Eric Audras/Getty Images
The Top 5 Contractor Scams and How to Avoid Them. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.
Crooks go where the money is. So with Americans spending as much as $22 billion a year on construction projects, it's no surprise that home improvement has become a favorite target for fraud artists. Some of these shady characters use amazingly well-polished hoaxes that are tricky to spot until it's too late.
The vast majority of contractors are honest, hardworking professionals. Protecting yourself against the few bad apples requires checking references, having a solid contract, and being alert to the warning signs of these top five contractor scams.
The Top 5 Contractor Scams and How to Avoid Them. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.
Scam 1: I need the money up front
This is the most common ruse reported to the Better Business Bureau, says Erin Dufner, vice president of the organization's Austin, Texas, office. Your contractor explains that because he has to order materials and rent earthmoving equipment to get the job started, he needs, say, 30% to 50% of the project price up front. Once you've forked over the dough, one of two things happens: He disappears on you, or he starts doing slapdash work knowing that you can't really fire him because he's sitting on thousands of your dollars.
How to protect yourself: Never prepay more than $1,000 or 10% of the job total, whichever is less. That's the legal maximum in some states, and enough to establish that you're a serious customer so the contractor can work you into his schedule-the only valid purpose of an advance payment. As to the materials and backhoe rentals, if he's a professional in good standing, his suppliers will provide them on credit.
Scam 2: Take my word for it
When you first meet with the contractor, he's very agreeable about doing everything exactly to your specifications and even suggests his own extra touches and upgrades. Some of the details don't make it into the contract, but you figure it doesn't matter because you had such a clear verbal understanding. Pretty soon, though, you notice that the extras you'd discussed aren't being built. When you confront the contractor, he tells you that he didn't include those features in his price, so you'll have to live without them or pony up additional money to redo the work.
How to protect yourself: Unfortunately, you have no legal recourse because you signed a contract that didn't include all the details. Next time, make sure everything you've agreed on is written into the project description. Add any items that are missing, put your initials next to each addition, and have the contractor initial it, too-all before you sign.
Scam 3: I don't need to pull a permit
You're legally required to get a building permit for any significant construction project. That allows building officials to visit the site periodically to confirm that the work meets safety codes. On small interior jobs, an unlicensed contractor may try to skirt the rule by telling you that authorities won't notice. On large jobs that can't be hidden, the contractor may try another strategy and ask you to apply for a homeowner's permit, an option available to do-it-yourselfers.
But taking out your own permit for a contractor job means lying to authorities about who's doing the work. And it makes you responsible for monitoring all the inspections, explaining to the contractor what changes the inspector wants, and getting him to make them-since the contractor doesn't answer to the inspector, you do.
How to protect yourself: Always demand that the contractor get a building permit. Yes, it informs the local tax assessor about your upgrade, but it weeds out unlicensed contractors and gives you the added protection of an independent assessment of the work, says Tampa, Florida, attorney George Meyer, chair-elect of the American Bar Association's Forum on the Construction Industry.
Scam 4: We ran into unforeseen problems
The job is already under way, perhaps even complete, when this one hits. Suddenly your contractor informs you that the agreed-upon price has skyrocketed. He blames the discovery of structural problems, like a missing beam or termite damage, or design changes that you made after the job began.
The additional fees might very well be legit, but some unscrupulous contractors bid jobs low to get the work and then find excuses to jack up the price later. If you're unsure whether your contractor is telling the truth about structural problems, you can get an impartial opinion from a home inspector, the local branch of the National Association of Home Builders, or even your local building department.
How to protect yourself: Before signing the contract, make sure it includes a procedure for change orders, which are mini-contracts containing a work description and a fixed price, for anything that gets added to the job in progress. The extra work, whether it's related to unforeseen building issues or homeowner whims, can proceed only after the change order is signed by both homeowner and contractor.
Scam 5: I've got extra materials I can sell you cheap
This hoax is usually run by driveway paving companies, whose materials-hot-top asphalt and concrete-can't be returned to the supplier. So the crew pulls up to your house with a load of leftover product and quotes a great price to resurface your driveway on the spot. Even assuming they really are giving you a bargain (by no means a sure thing), taking them up on the offer is risky. You have no idea who they are or whether they'll do the job right. And if the driveway starts cracking next year, you can be sure that you won't be able to find this bunch again.
How to protect yourself: Never hire a contractor on the spot, whether it's a driveway paver, an emergency repairman who shows up after a major storm, or a landscaper with surplus plantings. Take your time to check contractors out to make sure they have a good reputation and do quality work.
All of these situations can be difficult to resolve once you're a victim. But a little up-front effort now can keep you from throwing good money after bad later on. By: Oliver Marks.
The Top 5 Contractor Scams and How to Avoid Them. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.
How To Fight Back Against a Bad Contractor. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.
You have options for recourse if a contractor disappears or does shoddy work, but which action to take depends on the particulars of your situation.
Keep a detailed log of the ways your contractor hasn't lived up to his responsibilities--it could come in handy later on. Image: Steven Errico/Photodisc/Getty Images
How To Fight Back Against a Bad Contractor. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.
No major home improvement happens without a few glitches. Cost overruns and completion delays are common-to say nothing of the fine layer of dust that takes months to fully eradicate. Occasionally, though, projects turn into unmitigated disasters. Roofs get torn off and left open to the elements; unskilled laborers slap together defective work; you pay hard-earned money for amenities that never get installed.
Maybe the contractor took on more work than he could handle or went belly-up in the middle of a job-or, worst-case scenario, maybe he's an out-and-out crook. The best way to protect yourself is to choose your contractor carefully, vet him thoroughly, and have an ironclad contract, says Tampa, Fla., attorney George Meyer, chair-elect of the American Bar Association's Forum on the Construction Industry. But when the worst happens, here's what you can do to defend yourself.
Fire the contractor
This is an obvious step when things go seriously wrong. But it's not easy. Your contractor could challenge the firing in court as a breach of contract. So you need to be prepared to show that he breached the agreement first.
To do that, you need to document instances when he didn't live up to the specifics of the contract, such as substituting inferior materials or failing to stick to the agreed-upon schedule. Then send a return-receipt letter to his business and home addresses stating that unless the problem is rectified within a specified number of days, he's in breach of his contract and you will be terminating it.
The catch: You can be sure the contractor won't be refunding any money you've already paid, so if you've written any checks up front, this tactic can be costly.
Request a dispute resolution hearing
Some construction contracts include a binding arbitration clause, which states that rather than going through the courts, disputes will be resolved by arbitration, a low-cost process in which each side presents its case to an independent authority, who makes a final decision.
But even if your contract has no such provision, you can request a similar hearing. The Better Business Bureau, a national nonprofit association, offers mediation services for free or for a nominal fee of around $50, says Erin Dufner of the BBB's Austin, Texas, branch. Neither the homeowner nor the contractor needs to be a member of the organization.
The catch: There are two, actually. One is that you need to get the contractor to agree to mediation, which may be challenging with a truly shady guy. The other is that mediators and arbitrators look to the contract for guidance, so if you have a badly written one, there may not be much they can do to help you.
File a lawsuit
Hire a construction attorney to pursue your case, and you may be able to get more traction. These legal pros know the ins and outs of state statutes and may be able to work around weaknesses in the contract. Also, unlike BBB hearings, the contractor can't opt out of this process, assuming the guy hasn't disappeared altogether.
And even if he has, you may be able to collect money from a state contractor recovery fund consisting of contractor licensing fees, or from a bond the contractor posted at the start of your project. The latter is required for residential jobs in some states, Dufner says.
The catch: Attorneys charge $100 to $300 per hour for these cases, which can run into many, many hours, so unless you're dealing with a very big-ticket project, such as building an entire house, you'll likely spend more on the attorney than you're disputing with your contractor.
Take your case to small claims court
In these courts you represent yourself and pay just a few dollars in fees to bring a case. The exact rules depend on your local jurisdiction, but typically, a judge hears from both parties, asks questions, and then, Judge Judy-style, decides how the case will be resolved.
The catch: Small claims are just that. In most places, award limits are in the $3,000 to $7,500 range, with Kentucky coming in at the lowest, $1,500, and parts of Tennessee coming in at the highest, $25,000.
How To Fight Back Against a Bad Contractor. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.
File complaints and bad reviews
There are a host of websites where you can post information about bad contractors, including angieslist.com, franklinreport.com, and contractorsfromhell.com. You can also file a complaint with the state contractor licensing board, which collects these reports and, once a certain threshold is reached, makes the information available to the public.
These steps won't get your botched tile job fixed or bring back a disappeared contractor, but you may take some comfort in knowing that you've protected a fellow homeowner from the same fate.
The catch: A contractor could potentially sue you for libel over a bad review. State laws vary, but being 100% accurate in any claims you post gives you a strong defense in court, says Atlanta attorney Alan Begner, president of the First Amendment Lawyers Association, a trade group. Still, a big contractor with deep pockets could choose to bring a case, forcing you to spend tens of thousands in your own defense.
To decide which of these options makes the most sense for your particular circumstances, you may want to consult a construction attorney. Your family attorney can refer you to one of these specialists, or you can find one through the American Bar Association. Explain that you're not necessarily looking to take your case to trial, just to get an expert review of the situation and your contract and advice on what to do. You'll pay between $500 and $1,000 for a consultation, but it could save you far more money in the long run. By: Oliver Marks
How To Fight Back Against a Bad Contractor. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.
Drawbacks of Home Equity Loans. New Construction Homes for Sale in Burnt Hills NY. Stewart Construction-Custom Home Builder in Burnt Hills NY and all of Saratoga County.
Taking out a home equity loan against the value of your property can backfire if you fail to avoid these common pitfalls in the borrowing process.
Paying off a home equity loan early can be costly. Image: Dana Hoff/Getty Images
Drawbacks of Home Equity Loans. New Construction Homes for Sale in Burnt Hills NY. Stewart Construction-Custom Home Builder in Burnt Hills NY and all of Saratoga County.
When you need a quick source of funds, a home equity loan can be tempting. Done wisely, you can use the lower-interest debt secured by your house to pay off debts with high interest rates, like credit cards. It's also a good choice if you know exactly how much you need to borrow for a big expenditure like a vacation home or a new kitchen.
Often you can even write off the interest you pay on the loan. Consult a tax adviser. But home equity loans aren't always the best choice for accessing cash. The fact that you're staking your home against your ability to pay off the debt is just the beginning of the potential drawbacks.
Money doesn't come cheap
A home equity loan is a second mortgage on your house. Interest rates are usually much lower for a home equity loan than for unsecured debt like personal loans and credit cards. But transaction and closing costs, similar to those for primary mortgages, make home equity loans a pricey way to finance something you may want but don't absolutely need, like a fur coat, exotic vacation, or Ferrari. The average closing costs on a $200,000 mortgage are $2,732.
To compare offers on competing home equity loans, look at the annual percentage rates. These take into account closing costs and fees. On a $30,000 second mortgage, you'll save $210 a year with a 5.5% APR vs. a 6.2% rate. Keep in mind that lenders might be willing to waive some upfront costs and fees, especially if you already have your first mortgage with them, which will reduce the APR.
Drawbacks of Home Equity Loans. New Construction Homes for Sale in Burnt Hills NY. Stewart Construction-Custom Home Builder in Burnt Hills NY and all of Saratoga County.
Early payoff can be costly
Home equity loans almost always have fixed interest rates. Although that can bring peace of mind, if you borrow when rates are high, you may find it's expensive to try to refinance to a better rate later on. That's because lenders make money when you pay back the interest on a loan. And since some lenders are absorbing the upfront costs, they make it up on the back end by charging a prepayment penalty if you refinance or sell your home.
Such early-termination fees are typically a percentage of the outstanding balance, such as 2%, or a certain number of months' worth of interest, such as six months. They're triggered if you pay off part or all of a loan within a certain time frame, typically three years. Despite the penalty, it may be worthwhile to refinance if you can lower interest rates sufficiently.
By refinancing a $30,000 loan you took out two years ago at 9% down to 8%, you'll break even in six years and nine months. This assumes both loans have 15-year terms, and you'll pay $3,000 in closing and early-termination costs. Refinance at 7% and you'll recover those costs in four years and nine months.
If you need money during a period of high interest rates, but expect rates to fall soon, it may make sense to go for a home equity line of credit instead of a lump-sum second mortgage. Although more lenders are charging stiff prepayment penalties for HELOCs too, these are triggered when the line is closed within a certain period, such as three years, not when the balance is paid off. Bear in mind that interest rates on most HELOCs are variable.
Beware predatory lenders
Some lenders don't act in your best interest. Theoretically, lenders are supposed to follow underwriting guidelines on appropriate debt and income levels to keep you from spending more than you can afford on a loan. But in practice, some unscrupulous lenders bend or ignore these rules.
Others urge you to take out up to 125% of your home's value, a practice that puts you at risk of foreclosure should you lose your job or your home fall in value. Still others work with shady home-improvement contractors who pressure you into taking their loans at above-market rates-and jack up the price if you don't. According to the U.S. Department of Housing and Urban Development, you should avoid anyone who insists on only working with one lender or who encourages you to do things like overstate your income.
Your house is at stake
A home equity loan is a lien on your house that usually takes second place to the primary mortgage. As such, home equity lenders can be left with nothing if a house sells for less than what's owed on the first mortgage. To recoup losses, secondary lenders will sometimes refuse to sign off on short sales unless they're paid all or part of what they're owed.
Moreover, even though they lose their secured interest in the house should it go to foreclosure, they can send debt collectors after you for the balance, and report the loss to credit agencies. This black mark on your credit score can hurt your ability to borrow for years to come. By: June Fletcher
Drawbacks of Home Equity Loans. New Construction Homes for Sale in Burnt Hills NY. Stewart Construction-Custom Home Builder in Burnt Hills NY and all of Saratoga County.
How to buy a house. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction-Custom Home Builder in Burnt Hills NY.
How to buy a house. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction-Custom Home Builder in Burnt Hills NY.
Actually, how to think about buying a house.
You don't see a lot of ads trying to sell you on spending too much money on a house. It's more subtle than that. The marketing is all around us, and has been for years. The enormous social pressure and the expectations that come with it lead to misunderstandings and confusion. Here's my advice to someone in the market:
I'm optimistic about the power of a house to change your finances, to provide a foundation for a family and our communities. I'm just not sure you should buy more house than you can afford merely because houses have such good marketing. Seth Godin
How to buy a house. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction-Custom Home Builder in Burnt Hills NY.
Our building philosophy is simple: build a product that exceeds our client’s expectations using only quality products and experienced craftsmen.
Stewart Construction Inc. is a second- generation, family- owned and operated business. Our family has been building and remodeling homes in the Capital Region for 40 years. The company is owned by Todd Stewart, who lives with his wife and three children in Vienna Heights, a Stewart subdivision built in the late 1990's. We are a small- volume company, which means that we take a very hands- on approach to your project, and we pride ourselves on personal service and customer satisfaction. Our building philosophy is simple: build a product that exceeds our client's expectations using only quality products and experienced craftsmen.
An open line of communication is vital for any project to go smoothly. We encourage you to visit the site with Todd during the construction process. Ask questions, voice concerns, and offer ideas. Your involvement assures that your new home is exactly what you dreamed it would be. We also encourage anyone who is considering building with us to talk to our past clients to see what the experience was like. Building a custom home, big or small, can be a daunting task. Let us guide you through it and make it the fun and exciting experience it should be.
We think our clients say it best: "...we feel we have not only acquired a beautiful home, but have gained a good friend." Thank you for considering Stewart Construction to build your new home.
Our Building philosophy is simple. Build a product that exceeds our client's expectations using only quality products and experienced craftspeople. We never make exceptions to this rule and our satisfied clients are proof of that fact. Todd personally oversees each major aspect of construction to ensure that it is done right and meets our high standards.
An open line of communication is vital in order for a project to run smoothly. We encourage you to visit the project during the construction process to ask questions, voice any concerns, and offer ideas. Your involvement helps to assure that your new home is exactly what you dreamed it would be. We encourage everyone who is considering building with us to talk with our past clients to get a feel for what working with Stewart Construction will be like.
Along with backing every home we build with our Residential Warranty, we also offer the opportunity to have your home Energy Star labeled through New York State's Energy Smart Program, or, through the National Association of Home Builders, you may choose to have your home built to the standards of the National Green Building Certification Program, an ANSI- certified green building program, which encompasses the Energy Star guidelines and goes on to address many other "green" features. These two programs allow our clients to ensure that their homes are environmentally responsible.
Thank you for considering Stewart Construction Inc. for your new home building project.
As a longstanding partner in the New York ENERGY STAR labeled Homes program, Stewart Construction has the opportunity to offer our clients a way to verify the energy savings they can expect to receive from their new home.
The Energy Star Program was started in 1992 by the federal Environmental Protection Agency as a way to promote the use of energy efficient products and reduce greenhouse gas emissions. In New York it is administered by the New York State Energy Research and Development Authority (NYSERDA) and is called New York Energy Smart.
New York ENERGY STAR labeled Homes employ proven technologies and advanced building practices to use approximately 30% less energy than conventionally built homes. These practices include comprehensive air sealing, high-density insulation, duct sealing, high-performance windows and doors, high-efficiency heating and cooling systems, mechanical ventilation systems, and energy-saving appliances and lighting.
At Stewart Construction, our building practices have always included a comprehensive system of insulation, air sealing and ventilation. Through the New York ENERGY STAR labeled Homes program, we are excited to be able to provide our new homeowners the option of having their home tested and certified to meet the high standards of an ENERGY STAR labeled home.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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