While the Home Efficiency Plan has not been written yet, based on recent reports here is the information being floated to the public.  Remember the 1st Time Home Buyers credit began at $15,000 and ended up being $8,000.

Q: When does the Cash For Caulkers program go into effect?

A: Unknown.  The Obama administration will work with Congress to draft the legislation.  The proposal is part of a larger spending plan including other programs for small business, renewable energy manufacturing and infrastructure.

Q: What types of services and appliances will be covered in the Cash For Caulkers program?

A: Home energy audits. Installation and purchases of energy efficient appliances like air conditioners, heating systems, washing machines, refrigerators, windows and insulation.

Q: Who is eligible?

A: Everyone who owns a home.

Q: How much is available?

A: Consumers could be eligible for a 50% rebate on both the price of the equipment and the installation, up to $12,000.

We’ll keep you posted.

Cash For Caulkers

President Obama recently released a preliminary outline of the proposed “Cash for Caulkers” program which is designed to stimulate job growth while in turn retrofitting homes to be more energy efficient.

“I’m calling on Congress to consider a new program to provide incentives for consumers who retrofit their homes to become more energy-efficient, which we know creates jobs, saves money for families and reduces the pollution that threatens our environment,” Obama said at the Brookings Institution in Washington.

The program could allow for up to $12,000 in rebates to consumers.

Consumers might be eligible for a 50% rebate on both the price of the equipment and the installation, up to $12,000,  So far, there is no income restriction on who is eligible. That would mean a household could spend as much as $24,000 on upgrades and get half back.

More to follow…

Those new to building and first time owner builders can benefit greatly from a site supervisor. Many owner builders rely on site supervisors for their knowledge of local building codes, help with contractors, work arounds for problems and selection of appropriate materials for your job.

Who can be a site supervisor? Do they have to be a General Contractor?

At a minimum, typical bank requirements for site supervisors call for residential construction project manager experience with a least two years of practical on the job experience. If your site supervisor falls into this category he/she will be asked for a resume to document their knowledge. The resume should be written as if your site supervisor is applying for the job of project manager. They should mention of the number of houses built and demonstrate the understanding of all aspects of residential building from “ground up”, highlighting local code knowledge, is a good start to getting them accepted by your bank.

The ideal site supervisor is a general contractor with years of building experience and a state contractors licenses. General contractors have the least resistance in qualifying as site supervisors as long as they have been building for at least two years. Mentioning the number of homes built will be helpful when completing the site supervisor information sheets. Many retired builders are increasingly becoming site supervisors and will pass bank scrutiny as well. Just document their experience and they should be fine.

It’s important to note some states require contractor licenses to build a home. Check with your local building authority for more information.

Where do I find a Site Supervisor?

This question is asked often, and the answer is easier than one may think. In some cases soon to be owner builders have friends or family who are in the construction trade. These site supervisors are going to be the cheapest, they can even charge you $0 for their services. But sometimes you get what you pay for when it comes to friends and family, if you are considering them for your site supervisor, you should also know if they will be there when you need them, always use your best judgment.

If you want a detailed agreement which outlines roles and responsibilities of your site supervisor, be prepared to shell out hard cash for their services or consider hiring an owner builder consulting company to fill the role of site supervisor. If you don’t know someone off hand that would qualify as a site supervisor, you will have many chances to interview potential candidates during the bidding process.

Many subcontractors who will be bidding on you project are licensed contractors who have chosen to specialize one area of building for one reason or another. You will notice a handful of subcontractors will rise above the rest in terms of helpfulness and input into your project. Approach these subcontractors about being your site supervisor. You will be surprised with the results.

Most often you will find the more money you spend with a subcontractor the more receptive they will be about being your site supervisor.

Drafting the Site Supervisor Agreement

The second part of the banks site supervisor requirement is the “Site Supervisor Agreement”. The first question most potential site supervisors will ask is if they can be held liable for any damages. The answer lies on your site supervisor agreement. The site supervisor agreement is simply a contract between you and the site supervisor. The site supervisor is not asked to commit themselves to the bank and are not legally responsible to the bank, only to you. This puts the onus on you to ensure you have spelled out all the roles and responsibilities you expect from your site supervisor. This being said, site supervisor agreements come in all shapes, sizes and costs as every owner builder has different needs thus the contracts will differ.

Logically the more you demand of your site supervisor the more money they will demand of you. Site supervisors will have to charge you a flat fee for their services (banks will not accept per hour agreements) and prices will vary depending on the detail of your agreement.

Site supervisor agreements don’t have to be lengthy, but be specific in areas you want addressed. But, if you are looking for detail and ask for lots of responsibilities from your site supervisor, owner builder consultants may be your best route.

Today thousands of new home owners are bypassing traditional general contractor agreements and choosing to be owner builders. With the advent of new building technologies and the acceptance of owner builder loans by lending institutions, owner builder projects are sprouting up all over the United States.  But what’s the difference between an owner builder project versus a traditional general contractor project?

Let’s first talk about general contractors

Under the traditional general contractor relationship, the general contractor is responsible for everything required to build a house to the specifications outlined in a contract. This includes obtaining permits, managing all phases of construction, paying subcontractors, purchasing appropriate insurances and lets not forget working in change orders. For this the home buyer agrees to give him/her a sum of money. Once completed the general contractor hands the keys to the new homeowner. They didn’t get their hands dirty and hopefully everything went off without a hitch, everyone walks away happy.

What did they exchange for not getting their hands dirty in this traditional relationship? Equity in their new home. It’s common knowledge that general contractors typically make 15% to 20% profit on projects. While this sounds expensive general contractors are worth every penny for those not up to the challenge of being an owner builder. One thing is for certain, not everyone is cut out to be an owner builder, even people who are experienced in the building trades.

Cue the owner builder

In essence the owner builder is really a general contractor. They are responsible for everything the general contractor is traditionally responsible for; permits, planning, accepting bids, scheduling, managing subcontractors, paying vendors and labor…. you get the picture, everything. The success of the project rest squarely on their shoulders. Successful owner builders are first and foremost good managers and know how to offset these responsibilities to the appropriate team members.

Owner builders must determine their role early in the planning process as to where they are going to contribute to the project. They must be realistic about their abilities and with their available time. Some owner builders find out the hard way that they should have hired a general contractor to build their home. Lack of time, organization, planning, experience in managing people and money can send an owner builder project down the tubes fast. It’s important to understand that just because someone chooses to be owner builder doesn’t mean general contactors are out of the picture, instead they can be utilized as invaluable team members.

How much involvement?

Owner builder projects can be as organic as complete ground up construction with no outside help, hybrid owner builder / general contractor relationships, or complete subcontracting of the project with the home owner being the main overseer. In the end, the more involved the owner builder is the more money they will save, typically. Remember poor workmanship and planning can be costly. Site supervisors can help.

Most banks will require a Site Supervisor, and with good reason. Banks want to know the owner builder has someone available to help in the planning and organization of the project. They also want to make sure the owner builder has someone to pull them out of a jam when the going gets tough. Having an experienced general contractor as your Site Supervisor be your best asset.

Know the rules…

The tasks of an owner builder are not to be taken lightly. By signing a building permit application an owner builder assumes full responsibility for all phases of the project and its integrity. Before beginning the journey of becoming an owner builder check local and state regulations. Special restrictions may apply to owner builders. Follow this link to find out more about your state’s requirments Contractor’s License Reference Site.

You want a new home, but don’t want to wait 9 months to have it built.  Well you’re in luck.  Today’s housing inventories are at an all time high and creating a buyers market for the ages for those wanting a new home.  But how do you find builders with inventory they need to move?  This is where SpecHomes.com comes in.

Launched earlier this year, SpecHomes.com provides up-to-date information for new home builder inventory homes and spec house listings.  This free service is designed for new home buyers, real estate professionals, home builders and investors.  Pick your city and see the inventory that’s available.  It’s that easy!  Go take a look.  SpecHomes the leading authority for Spec Home information online.

You might have a dream of building a lake home for retirement, for enjoying summers at the lake or for an investment. No matter what your reason for owning a lake home by starting out with a good builder and knowing some of the basics about home building, you will be able to have a positive experience during the home building process.  By: Jim Raboin

Start by looking in your area for a builder that suits your needs and has a good reputation in the area. Make sure that the builder is sensitive to your needs and will listen to what you want in a lake home. Notice whether promises are kept or broken. Some contractors are skilled at giving good impressions early but lack the character to do what they say. You can save yourself many headaches by learning to spot this deficiency early on.

Ask your builder the following questions:

1. How many years of experience do you have in building lake homes?
2. What special skills and qualifications do you have to offer?
3. What happens if the project goes over-budget?
4. What type of homes do you normally build?
5. How much input will we have into the design of the home?
6. Are you licensed and insured?
7. Who is responsible to get building permits?

Take your time when looking for a builder. Some of the best builders in the area may be booked up several months in advance, but they also may be able to fit you in as many times builders work on several homes at one time. For instance, as the concrete is drying and setting up at one location, they may be doing the framing on another home.

Have a one-on-one meeting with the builder and see if he/she is open to your ideas and suggestions. Does the builder give you his/her complete attention? Or is he busy taking phone calls during your meeting? If so, the builder might not devote his/her full attention to your project. Then ask to meet some of the key staff who will be working on the home. Do the employees seem professional and interested in their work?

By taking your time when looking for a builder, you will go a long way in the process of having what you want in your lake home. Make your dream home a reality by taking things one step at a time – and starting with a qualified builder.

For more information about what to look for when building your lake home go http://www.bluestoneconst.com.

Jim Raboin and Larry McCulley are co-owners of BlueStone Construction and have over 20 years of experience in the building industry. Jim has been in the building industry since the early 1990’s and is a visionary who has built BlueStone on the idea of giving more than is expected. Larry has been in the industry since 2000 and helps clients build unique homes that reflect their lifestyle. Visit their website at: BlueStone Construction to learn more.

Before you sign a contract or make the first payment, take this simple test. It will give you a better idea of what you can expect from your contractor and the home improvement process.

1. An advertisement in the “home improvement” section of the Yellow Pages is your assurance that a contractor is licensed and reputable.       True          False

2. All states require home improvement contractors to be licensed.     True        False

3. Your state licensing agency can verify that the contractor you’re considering has the appropriate licenses, if required, and that they’re current.      True           False

4. Contractors should carry what type of insurance?
a. personal liability
b. worker’s compensation
c. property damage
d. all of the above

5. Comparison shopping should be based on
a. reputation and price
b. reliability and experience
c. price only
d. a. and b.

6. When comparing estimates, make sure each one is based on:
a. the same set of plans
b. the same set of specifications
c. the same scope of work
d. all of the above

7. You should expect to pay for a written estimate for your project.      True       False

8. A well-written contract should include the contractor’s name, address, phone and license number, if required. It also should specify:
a. the payment schedule for the contractor, subcontractors and suppliers
b. an estimated start and completion date
c. the cancellation policy
d. how change orders will be handled
e. all of the above

9. A change order is a written agreement to change the work described in the original contract. It could affect the project’s cost and schedule.      True        False

10. In most circumstances, oral contracts are as enforceable as written agreements. Oral contracts related to real property are an exception to this rule.         True        False

11. If you sign the contract in your home or at a location that is not the seller’s permanent place of business, you have three business days to cancel the deal.        True         False

12. You should expect to make payments when you:
a. sign the contract
b. get a regular invoice weekly, monthly or at milestones
c. sign a change order
d. order a custom-made item
e. all of the above

13. Avoid making the final payment or signing an affidavit of final release until you are satisfied with the work and have proof that subcontractors and suppliers have been paid.        True         False

14. If you get a loan for your home improvement project, you should have the lender make the check out to the contractor.

True     False

15. If you use your home as security for a home improvement loan, and you don’t repay the loan as agreed, you could lose your home.      True         False

——————————————————————————–

Answers:

15. True. The lender can take your home and sell it, using the proceeds to pay off the loan and any foreclosure costs.

14. False. The check should be made out to you. Otherwise, you lose control of the funds.

13. True. Lien laws in your state may allow unpaid subcontractors and suppliers to “attach” your home through a “mechanic’s lien”. That means the subcontractors and suppliers could go to court to force you to sell your home to satisfy their unpaid bills from your project. Protect yourself by asking the contractor, and every subcontractor and supplier, for a lien release or lien waiver.

12. E. All of the above.

11. True. The Federal Trade Commission’s Cooling-Off Rule gives you three days to cancel the contract. During the sales transaction, the salesperson (contractor) must give you two copies of a cancellation form (one to keep and one to send back to the company) and a copy of your contract or receipt. The contract or receipt must be dated, show the name and address of the seller, and explain your right to cancel.

10. True. Therefore, it’s always best to get verbal agreements added to your written contract.

9. True. Remodelers often require payment for change orders before the work begins.

8. E. All of the above. The contract also should spell out what will and will not be performed.

7. True. Most remodelers will charge for the time they spend preparing a detailed written estimate. The cost of the estimate will vary depending on the scope and complexity of the project.

6. D. All of the above. If your remodeler suggests deviations, ask that they be presented as options.

5. D. Reputation, price, reliability and experience are the keys to a quality home improvement project. Price alone is never an indication of a remodeler’s competence or ability to complete your project.

4. D. All of the above. Avoid doing business with contractors who don’t carry the appropriate insurance. Otherwise, you’ll be held liable for any injuries and damages that occur during the project.

3. True. You also can check with local building inspectors.

2. False. Fourteen states do not require licensing for home improvement contractors; 36 states require home improvement contractors to be licensed. Check with your state licensing agency or consumer protection officials to find out about licensing requirements in your area.

1. False. Anyone can advertise in the Yellow Pages. An ad should not be considered as an indication of the quality of a contractor’s work. It’s still best to get recommendations from friends, neighbors, and coworkers who have had remodeling work done. Contractors who are required to be licensed often list their license number in their ads. Check out the contractor with the Better Business Bureau and state and local consumer protection officials. They can tell you if there are unresolved consumer complaints on file. One caveat: No record of complaints against a particular remodeler doesn’t necessarily mean no previous consumer problems. It may be that problems exist but have not been reported, or that the contractor is doing business under several names.

What is a building consultant?

Building consultants can help steer the owner builder in the right direction in building their home. Building consultants offer a wide range of services to fill the owner builder’s needs. There are many building consultants who advertise to the owner builder on the web. But the owner builder should do their home work on which will meet their needs. Consultants can be individuals, local companies, national franchises with local presence and companies that will never set foot on your project, but act as a coach prior to and during construction. Each consultant relationship offers a unique benefit for the owner builder.

An owner builder should understand what services are offered through interviewing the companies or individuals, then make an educated decision on who best fits their needs. Fees will vary from company to company and will depend on how much involvement is necessary. Flat fee exist as well as percentage of loan fee.

The owner builder will find consulting companies who offer 100% financing of your project, or no money down program. This can be a huge benefit for owner builders who may want to avoid a downpayment. By working with these companies lenders are confident the owner builder is in good hands and don’t require site supervisors, saving them additional money. Some owner builders will utilize these programs for the 100% LTC benefit only.