Mighty Bargain Hunter

Remodeling your home? Check this out

April 20th, 2006 | by mbhunter |

The May 2006 issue of Money Magazine has an article on how to deal effectively with contractors and what to look for in hiring one for any remodeling work. Several good checklists and tips, including what to get in writing (things like exactly what’s to be done, estimated timeline, mediation and arbitration clauses, etc.), whether to get an architect or not (basically, get one if you’re shuffling structural points around).

There is a list of five things a contractor must have. This list is important so I put it here:

• A license, if required by your state
• Liability insurance
• Workers’ compensation insurance
• Insured subcontractors
• Good standing with the BBB

There is also a handy chart for typical markups of materials used in the remodeling:

• 10-20% markup for lumber
• 20-50% for plumbing fixtures
• Up to 40% for heating systems
• Up to 60% for kitchen countertops and cabinets
• 100% or more for light fixtures

My parents-in-law are in the process of hiring a builder for their new house. The builder will allow them to buy their own hardware for the doors; they wanted to do this because they had some particular hardware in mind. The Money article recommends haggling if the markup is too high.

But if the builder will allow you to buy your own stuff, then you can go to Home Depot or Lowe’s for the hardware — or you can go to eBay like my mother-in-law did. They bought almost $800 worth of hardware from one seller on eBay, and saved hundreds, if not over a thousand, dollars over what they would have gotten the same parts for in the store.

Questions tagged savings at Cash Commons:

• Automated Savings
• How do I know what funds to choose for my 401(k)?
• Should I pay down my debt of try to build an emergency fund in savings?