Residential Remodeling

Home Remodel Financing

December 3, 2019 By Tom Sweeney Leave a Comment

Homeowners with cash may choose to pay for their remodeling projects from savings or investments. But many clients borrow money to fund their remodeling dreams. APEX works closely with Senior Mortgage Consultant Gail Vinje from AMEC Home Loans to satisfy its clients’ remodel financing needs.

“We trust Gail. She is a fellow NARI MN member who has specialized in remodel financing for the past 25 years and knows this business very well,” said APEX President John Biancini. “She has built a team of appraisers and title company agents who truly understand remodeling process, quality and investment value.”

Home equity loan vs. mortgage refinance

Vinje said obtaining a home equity loan can make sense for small remodeling projects on homes with high equity. Interest rates generally are higher for these second mortgages because of their second lien position. But there is no need to determine the value of the enhancements to qualify for the loan. However, she said it often is better to refinance and roll remodeling costs into a fixed rate 1^st mortgage for large projects.

When one refinances to include remodeling costs in the mortgage, appraisers must determine the value of the remodel before it is built. This generally requires the contractor to provide plans and a scope of work to be done.

Remodeler’s role in securing financing

“Someone who wants to borrow based on future equity will need plans and a budget for appraisers to determine the future value. If they qualify for a program based on their current equity position, they might not need anything from the contractor,” Vinje explained.

Vinje said it typically takes four to six weeks for AMEC to process remodel financing for an APEX client. “Rates are good now, but it’s not possible to predict where they will be a year from now. I would say the timing is right when it is right for the client,” she said.

Quality of life improvements delayed are dividends lost

Biancini reminds clients that APEX remodels homes to improve their quality of life. “Remodeling is an investment that pays dividends of enjoyment for many years, so it makes sense to pay for the benefits over time,” he observed. “The one thing you cannot replace is time. The sooner your remodeling dream takes shape, the more time you and your family will have to enjoy it.”

If it helps, focus on the difference in your monthly mortgage payment rather than on the total project cost. But don’t over improve your property for the neighborhood unless you plan to own it and enjoy it for many years.

To begin your financing discussion, contact John Biancini.

Avoid Remodeling Sticker Shock

June 27, 2019 By Tom Sweeney Leave a Comment

I’m lucky. I hate to shop, but my spouse loves it. So she buys groceries and I merely carry the bags into the house from her car. The downside is that I’m largely clueless about what food costs. For most people, the same is true with remodeling. They are unaware of what projects cost because they don’t have much recent experience buying them. That also may explain why remodeling sticker shock is so common.

Softening initial sticker shock

Remodeling sticker shock often comes in two stages. The first occurs when contractors provide ballpark estimates of what a project might cost based on similar projects they have built and a rudimentary understanding of the owners’ goals. The second occurs when the homeowners are presented the actual construction agreement quote that’s based on detailed plans and specifications.

You can soften the first jolt by asking friends what they spent on their projects and by consulting the 2019 Remodeling Cost vs. Value Report. Its prices are based on popular construction industry estimating software. I would steer clear of cost guides from Home Advisor and Angie’s List because they bear little relation to what established contractors charge.

Avoiding aftershocks

Clients play a big role in whether formal quotes exceed expectations (in a bad way). “It’s fairly common for a couple to start with a narrow project, get excited and expand the scope when they meet a qualified remodeler and designer who can make it all a reality,” explained APEX President John Biancini.

Biancini said couples should try to reach a consensus and prioritize elements up front so they can back out the least important things if the expanded lists exceed their budget.

APEX Designer Lisa Stoll advises clients to choose materials and fixtures from the options she presents because they reflect the allowances used in the initial estimate. It also simplifies the selection process. “Walking into a showroom can be overwhelming because of all the options. A good designer will narrow the field so the client can’t go wrong,” she said.

“Most people say, ‘We don’t need the most expensive.’ But if they end up choosing marble instead of granite or imported tile, it’s going the increase the cost,” she said.

Stoll also reminds clients to be sure to earmark money for appliances separately. “Buying your own appliances will save you money. Just be sure to set aside funds above and beyond the APEX contract to cover those costs,” she said.

Do your part

Biancini and Stoll agree on one thing: Clients who want the best pricing should take their own pre-construction tasks seriously and complete them as scheduled.

“Major remodeling is not a spectator sport, it’s a collaborative effort. Designs that drag on because clients delay decisions are the ones that tend to cost the most,” Stoll observed.

Closing the budget gap

Prospective clients also should understand that established remodelers set prices based on what they need to operate successful businesses. It’s not a negotiation like buying a car. If the price is too much, something will have to go. You can’t just take 5 percent off the gross amount. You will have to eliminate something from the scope of work or substitute less expensive materials.

One caveat: Cabinetry typically is the single biggest line item in kitchen remodeling budgets but standard-sized box cabinets are not necessarily cost effective because installation is extra and it can take longer to make them fit.

Biancini typically insists that clients use APEX’s preferred trade partners even if they think they know someone cheaper. “When you hear the horror stories about crews leaving a job for a week, that’s not APEX,” Biancini said. “Matt (project manager) sets back to back and, when possible, overlapping trade partner schedules to complete projects in the shortest possible time. We can count on our preferred trade partners to show up and do good work because of our long working relationships. When you are without a kitchen for a couple of months, that’s priceless.”

If you have remodeling questions, please contact APEX Construction Management. We’re committed to delivering great client experiences one project at a time.

2019 Remodeling Cost Benchmarks

January 18, 2019 By John Biancini Leave a Comment

“What will my remodeling cost?” is one of the first questions many homeowners ask APEX when considering a project. That’s fair. It’s not like they can go on Amazon and compare prices and features for a new kitchen or room addition. And how could they possibly know remodeling labor, materials and project management expenses.

Fortunately, Hanley Wood LLC, the nation’s biggest construction industry publisher, issues a report each year that estimates costs and resale payback (value) for dozens of common remodeling and replacement projects. The Remodeling 2019 Cost Vs Value Report draws on a leading construction estimating tool to price the jobs. Then it asks experienced Realtors from different regions to score how each project would impact the home’s resale value so it can calculate payback.

Kitchen and Bath Remodeling Costs

Here are a couple of examples. The report prices a mid-level quality major kitchen remodeling for our West North Central region at about $64,400 (62.1 percent payback) and an upscale kitchen at about $128,700 (59.7 percent payback). It pegs a mid-level bathroom remodel at about $19,600 (67.2 percent payback) and an upscale bath at $62,500 (60.2 percent payback).

I think this independent cost/value benchmarking provides APEX Construction Management clients with a valuable frame of reference. We share the link to the annual study because well-informed homeowners are our best clients.

Basis for Remodeling Costs

Like the study’s publishers, APEX doesn’t pull a big number out of the air based on what a similar project cost last year. Rather, we tally all of the tasks and materials that must be completed and add overhead and a reasonable profit. We build each estimate from the ground up, just like our award-winning additions.

As expected, the latest report shows that both project costs and values increased last year. Steel tariffs, skilled labor shortages and strong demand will do that. For instance, the authors noted that the cost of replacing a steel door increased 24 percent from the previous year. That’s also why our design estimates come with expiration dates.

You Come First

The value or payback part of the annual remodeling study reflects its source: Realtors. Once again, exterior facelift projects such as garage doors and stone veneer accents retain the most value because their costs are relatively low and they help to make a good first impression among prospective homebuyers. Realtors say this enhanced curb appeal raises price expectations.

Payback should be considered if you are improving your home to sell. In that case a minor kitchen remodel at $21,900 may be worthwhile. Realtors in our region say it should retain 80.5 percent of its value. But, in reality, most APEX clients tell us they plan to stay in their homes and are remodeling for themselves to improve their quality of life. As the study suggests, the composite deck will cost more than wood, but what is it worth to avoid sanding and re-staining every couple of years?

Download Complete Report

To learn more, download the complete Remodeling 2019 Cost Vs Value Report free here. Be sure to review the scope for each project so you understand how it compares to what you plan. If you have any questions, please contact me.

APEX Past Clients Value Small Projects Services

July 25, 2018 By Tom Sweeney Leave a Comment

Many reputable contractors, APEX included, are too busy managing big remodeling projects to take on smaller ones. The exception might be for past clients who had used APEX for larger projects.

Gary from Plymouth is a great example. The Honeywell accountant hired APEX to remodel a main level bathroom on his Gleason Lake home several years ago and was impressed by John Biancini’s emphasis on meeting schedule while maintaining high construction quality standards. This year, he needed French doors installed in a seldom-used lower level bedroom before guests arrived. APEX got it done in time, despite discovering hidden plumbing in the wall during demolition.

“Sharon had a big push. We had a couple of guests coming in. She said I want this done and I want it done by this date. I immediately called John and he was able to get the job done,” Gary said. “When I contacted John I didn’t know. I said up front it might be too small a job. He said he would be in the area and would stop by and give me an estimate and got us on his schedule.”

Gary and Sharon initially contemplated pocket doors, but they opted for French doors to avoid the cost of removing the entire wall. They also stuck with the more traditional look vs. trendy barn doors. “The cost probably would have been the same, but we were concerned that barn doors might be a fad,” he explained.

Gary said adding the French doors has made the interior room much more pleasant with its new view of the Plymouth lake. “Before, it was like a big cubbyhole in there. There was no light. No atmosphere,’ he said. “We had two guests who stayed there for three nights each after the remodeling and they were very pleased. The French doors have opened up both rooms,” he said.

APEX Enhances Quality of Life at Home

Gary says having a good relationship with a trusted contractor is a real benefit as one approaches retirement. We suspect Sharon and their guests would agree.

“I wouldn’t have had time to get it done myself. It would have taken me five times as long,” Gary added. “I could have gotten it done eventually, but Sharon said, ‘ Save yourself the trouble. You can’t take it with you.’ She’s right.” When I spoke with him he had just returned from playing tennis.

Focus on Living, not Aging

May 14, 2018 By John Biancini Leave a Comment

JB talks accessibility with NARI speaker Louie Delaware. (Photo courtesy NARI MN.)

Although I earned my CAPS (Certified Aging In Place Specialist) credentials many years ago, I was eager to hear Louie Delaware from the Living In Place Institute in Colorado speak at the NARI MN meeting last week. I wanted to learn what’s new to help people live comfortably and safely in their homes for as long as they like.

While the information was very familiar, marketing of the design principals certainly has evolved. If Louie is right, it’s more about what you don’t say to get homeowners to adopt and invest in accessibility upgrades to their homes.

Making Accessible Design Appealing

He expained that the movemement toward barrier-free living started in the 1950s. The American Standards Association published the first acessibility standards in 1961. By 1973 some 49 states had adopted their own rules. Federal guidelines came in 1984.

The initial Americans with Disabilities Act (ADA) requirements applied to public spaces and businesses, not private homes. And many of the products designed to achieve accessibility looked decidedly institutional. The first focus was on people with physical disabilities. Later, the concept of Universal Design broadened the scope to benefit people of any age or ability. The idea was that accessible design could look attractive and make life easier, safer and more comfortable for everyone. That was followed by the “Aging In Place” buzzword, which spoke to the enormous Baby Boomer generation that wants to continue living independently in their private homes.

According to Louie, the trouble is that most people don’t want to focus on aging; they prefer to think about living. Which is why he founded the “Living In Place Institute” to teach and certify contractors and designers.

The principles are the same whether you call it Universal Design, Aging In Place or Living in Place. Good design is about more than good looks. It also should improve your quality of life at home, however and whenever that life changes.

Here’s just one example from Louie’s talk. Install a GFCI-protected electrical outlet behind your master bathroom toilet when remodeling the space. Use it for a nightlight now. But it will be available to support a bidet toilet seat down the road. Louie claimed inability to take care of personal toileting is what causes many people to enter a nursing home.

Bottom line, you can count on APEX to keep an eye on the horizon even if you a focused on the here and now.

An APEX Kitchen Designed For Just For You

June 29, 2015 By John Biancini Leave a Comment

John “JB” Biancini in North Oaks kitchen he remodeled.

APEX Construction Management (APEX Design-Build) understands that your kitchen is the heart of your home. It’s the one space in your home everyone calls theirs, so it needs to work for multiple people and serve multiple purposes. The APEX philosophy on kitchen design is summed up in one short statement, “Builders design kitchens for houses. We design kitchens for people.” Your kitchen needs to be a perfect fit for the way you use it every day.

We’ve compiled a list of the things you should consider when planning your new kitchen. This list has been refined over many years of experience from both a personal and professional perspective. We hope that you find this helpful:

Workflow. Good design takes into consideration many factors including how many people tend to be in the kitchen at the same time. You need room to work and your family and guests need space to socialize. Be sure the counters, island, range, and refrigerator all work together. The work triangle is a key design element that ties together the sink, the range, and the refrigerator.
Counter Space. Most people who regularly cook and entertain in a kitchen will agree there is no such thing as too much counter space. Whether you’re preparing a meal or setting up a buffet for your son’s hockey team dinner, having extra counter space makes time in the kitchen more organized and calm.
Storage. Another factor in keeping things calm in the kitchen is having enough storage space. Pots that are continually falling out of the cabinets or drawers over flowing with unorganized kitchen gadgets make things more stressful and increase your meal prep time. There are so many exceptional features in cabinets today, it’s possible to make the most of every square inch in a kitchen thus making a space for everything so everything can have a place.
Lighting. If you can’t see, how can you cook? Even if your eyesight is 20/20 it’s still nice to have proper task lighting to read a recipe, measure a quarter cup of something, or to make sure all the crumbs are dusted from your counter when finished for the day.
Flooring. Some days in the kitchen are longer than others. Be sure your floor is friendly to your feet and back. Luxury Vinyl Tile (LVT) has become a very popular choice for kitchen flooring. This product looks like wood or tile, but gives you the benefit of a softer and warmer surface that helps reduce fatigue. LVT flooring also helps prevent some items from breaking items if they are dropped.
Power Sources. Outlets are important! Think of all the extra small appliances you use when you’re in the kitchen. Hunting for a power outlet will make whatever you’re doing more time consuming and frustrating.
Ventilation. Having proper ventilation in your kitchen is a must! The fish you made on Monday smells terrible the next day when it’s still lingering in the air.

Things to consider when purchasing a range vent include; a) Will the range vent exhaust straight up, out the side wall, or is it a downdraft unit? b) The vent must be installed properly, including providing sufficient make up air to meet code requirements if the output is greater than 300 cubic feet per minute. c) The physical size must be equal to or wider than the range that covers. d) How loud is it when turned on?

Ready to start your next remodel? Call us today to get started!