Canada's home renovation market is booming. Our federal government predicts renovation spending will rise to $25.9 billion in 2000 and $27.1 billion in 2001 - healthy increases from $24.9 billion last year. Canadians are flocking to "big-box" hardware/building stores and home improvement firms are flourishing. But how many Canadians stop to ask whether they are getting value for their portion of the billions of loonies being spent?
Here are few renovating tips to ensure you are among those who find renovating a wise investment:
If this is your first renovation, talk to family and neighbours who have gone through similar construction and find out what they learned the hard way. While this should save some grief, be prepared for inconvenience and unexpected problems, especially if your home is more than 10 years old.
Before you start renovating, set a realistic budget and reasonable expectations. If you renovate beyond the value of similar homes in the immediate area, you may run the risk of not getting any of your investment back or of wanting to price your home out of the real estate market when it comes time to sell. Check with local real estate salespeople and have at least one complimentary market evaluation done on your home that addresses the renovation value question.
Contact your municipal office, local politician or area Canada Mortgage and Housing Corporation office to find out whether you and your proposed renovations qualify for grants or low-interest loans. For instance, the Residential Rehabilitation Assistance Program (RRAP) provides loans and grants to low-income homeowners bringing their homes
up to health and safety standards. The program can also be used to make homes accessible for disabled residents, enabling them to live independently.
Arrange written estimates from at least three reputable renovators. Ask neighbours for references and take a look at the work that was done. Your standards may be higher than your neighbour's.
If you deal with door-to-door salespeople, ask for identification. Write down the details and check with the Better
Business Bureau, municipal office, police community support division or neighbours who have hired these people already. Do not sign up the first time you talk to anyone.
Do not pay for work in advance. Deposits of between 5 and 15% of the total price are common, with another 20% or so paid as work progresses.
Read any contracts carefully. Once you have signed you are committed, so be sure you understand what you are agreeing to and responsible for. In some areas, brief "cooling off" periods may exist but check with the provincial government's consumer protection branch to be sure. Never sign a blank form or piece of paper.
Be sure the contract allows you to withhold at least 10% of the total cost for a reasonable period, i.e. 45 days, after completion if you are using a general contractor who hires other workers to do the job. This protects you from overpayment should you have to pay subcontractors who were not paid by the general contractor.
Warranties vary with manufacturer and contractor. Collect the warranty cards from any parts used and file them in a safe place so you'll be able to find them if the need arises.
Published: August 1, 2000
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Futurist and Strategist PJ Wade is "The Catalyst" -- intent on "Challenging The Best Become Even Better." PJ earned this title by translating the dynamic impact of Boomers and their multi-generation families into relevant insights that start people thinking and taking action—in business and in life.
Author of 7 books and more than 1600 published articles, PJ encourages individuals to become their own futurist. PJ writes and speaks about the insight, knowledge and solid decision-making skills that professionals and their clients need to live and work in this vortex of change. For instance, since PJ knows that home is headquarters for the new decades-long "unretirement," she wrote the popular book "Reverse Mortgages: Best Friend, Worst Enemy... Your Choice! (CatapultPublishing.com), which is filled with suggestions and insight on protecting and using home equity. Her new business book, "What's Your Point?," which identifies 7 common mistakes professionals unknowingly repeat to their detriment, will be published in 2009.
As The Catalyst, PJ provides strategic communication, client appreciation and advanced education services to the financial, tourism, lifestyle and service sectors -- and the clients they serve. A frequently-quoted financial and business commentator, PJ is a thought-provoking strategic speaker who offers practical, real-life suggestions on leaving "the box" behind and embracing Forward Thinking -- a talent she regularly demonstrates in this column. For more on blogs, books and topics, visit TheCatalyst.com.
Canada's home renovation market is booming. Our federal government predicts renovation spending will rise to $25.9 billion in 2000 and $27.1 billion in 2001 - healthy increases from $24.9 billion last year. Canadians are flocking to "big-box" hardware/building stores and home improvement firms are flourishing. But how many Canadians stop to ask whether they are getting value for their portion of the billions of loonies being spent?
Futurist and Strategist