Saturday, 1 March 2014

Home Additions As An Option For Homeowners

By Mollie Burton


Sometimes, people buy residential property and need some modification done. These modifications include home additions. Some may have growing family members and need more living space. Having additional land helps. Sometimes some of the original structures are demolished and new living space added. Others may modify existing space and remodel and choose option of just adding more living space to the existing structure.

Some homeowners who find their existing properties restrictive due to size may decide to sell and buy a property more appropriate to their current needs. This option may not be available to some who are financially stretched or who want to stay in their existing homes. Staying in the same property and modifying the existing structure to accommodate current needs is often cheaper than demolishing and rebuilding.

Many homes are upgraded to provide more or new bathroom space and bigger and better equipped kitchens. Some homeowners want existing bedrooms enlarged or a bathroom added to a bedroom. Basements may be unfinished giving homeowners the choice of adding more livable spaces. These basements can be reconstructed to become independent units with their own entrances.

Adding more room for living purposes comes with a price. The more elaborate the renovation the more expensive the projects. Loans are often applied for by homeowners. Those with sufficient equity often have their loan applications approved more quickly. The homes to be renovated are used as collateral. The more equity homeowners have in their properties, the more secure the loan, particularly in the face of default by borrowers.

There are many banking entities offering loan finance to homeowners for remodeling purposes. In many cases, the financial entity starts the process by finding out the ratio of homeowner equity relative to that owned by a mortgage provider. Those who own their homes with no loans attached are favored by lenders. Properties used as collateral for loans are considered secure loans. Secured loans give the lender redress if default of payments due occurs.

There are many people making a living from the remodeling business. Engineers, carpenters, painters, lorry drivers, contractors of many different skill sets and electricians are some of the skilled professionals needed on many projects. The number of people and the skill level needed on any one project depends partly on how big the job is or how complex. Many people are employed on a contractual basis. A significant number are self employed.

Finding contractors and other professionals for home remodeling can be challenging. Although there are a lot of businesses and individuals performing home addition work, it is important to find the right contractor to do projects. Due diligence is advised before making a choice. Due diligence includes following up on references from previous clients and making sure contractors are fully licensed and bonded.

People often have remodeling work done to their existing homes. Some property owners remodel while others rebuild by demolishing all or part of existing structures. Finance is often sought by homeowners who need additional living space added. Many related businesses use contractors and subcontractors to perform the various tasks needed by homeowners. Caution and doing homework before hiring contractors is advised.




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