http://www.articletrader.com/ Articles at ArticleTrader en-us http://www.articletrader.com/home-and-family/gardening/your-second-home-landscape-planting-for-wildlife.html http://www.articletrader.com/home-and-family/gardening/your-second-home-landscape-planting-for-wildlife.html Mon, 01 Oct 2007 00:00:00 -0500

There are good reasons to consider the happiness and welfare of wildlife in our gardens. On a personal level, it certainly enhances our enjoyment to hear the birds and crickets sing, and it educates and cheers the children, especially those who usually live in the cities. In addition, each step we take helps to ensure the survival of animals and insects upon which our ecosystem relies. Even around your vacation home, creating habitat suitable for both humans and wildlife isn’t difficult, it just takes a thoughtful approach.

The three main requirements are water, food and shelter. Water is the easiest, for what could be simpler than setting up a birdbath? Do keep in mind that birdbaths should be no deeper than 2”, with gently sloping sides so the birds can wade in. They should be set up in an open area, but with perching sites close by. You may want to set up an additional birdbath at ground level, one that is reachable by chipmunks and other small animals.

Having a variety of food plants in the garden is the best way to ensure that you get a positive embarrassment of wildlife viewing. When choosing what to plant, try incorporating a variety of native species into your landscape, which are not only preferred for wildlife, they are generally easier for us humans to tend. Plant mixed shrubs or hedges rather than fencing your property, and choose shrubs and trees that provide fruit or seed for birds. Pinecone seeds are favorites of nuthatches and pine grosbeaks. Beechnuts and acorns are feasted upon by many animals, including wild turkeys. Staghorn Sumac attracts bluebirds, hermit thrushes and flickers.

The availability of fruits will, of course, please animals mightily. Blueberries, grapes, cherries, elderberries and raspberries are a guaranteed draw. Our native shadblow (Amelanchier) is a huge hit with birds all season long, from the time the cedar waxwings arrive to eat the flowers, until the catbirds and orioles come to polish off the berries.

Hummingbirds will be pleased to find nectar-bearing plants such as Beebalm, Penstemon, Columbine, Coralbells, Phlox and Honeysuckle.

Safe sheltering and nesting is the third component needed. Many little creatures will feel too vulnerable to predation to venture onto a wide close-cropped lawn, but will live and thrive in a thicket on your property. Leave a corner of the yard undeveloped, and let the vines and undergrowth stand. Rather than disposing of tree trimmings, leave a brush pile or two in a quiet corner to give cover. If your landscape is broad and open, try planting several shrubby islands which the animals can use to cross the area in safety. Leave some areas of grass unmown, as there are several birds that need to nest in tall grasses. Wait until late summer to mow, after the baby birds have fledged.

When selecting trees and shrubs, include some thickly branched species that create secure nesting sites. Dense shrubs suitable for both hedging and birds include Hornbeam, Forsythia, Privet, Dwarf Crabapples, Yew, White Cedar, Boxwood, Dogwoods and Hemlocks. Allowing a dead tree to stand, if a safe distance from the house, not only gives homes to birds and squirrels, but will attract woodpeckers.

Avoid the use of chemicals in the garden. If your lawn is tended by lawn-care professionals, ask them to refrain from or restrict the use of chemical pesticides and herbicides, many of which are implicated in health issues not only for wildlife, but for pets and people too. In most of the northeast, lawns do not need fertilizer, and the overuse of chemical formulations leads to pollution and algae blooms in the waterways.

Let’s not forget the insects, an essential part of the nature friendly landscape. They too should be accommodated, for they feed many animals and birds, may develop into beautiful butterflies, or be indispensable pollinators for our garden and crop plants.

Butterflies need not only nectar-producing plants, they need plants to feed on while still in the larval stage. Without milkweed leaves for the caterpillars to eat, for example, we will not see many Monarch butterflies coasting along the late summer breezes. Develop a wildflower area to support birds and butterflies. Consider replacing part of the lawn with a wildflower meadow stocked with hardy perennials like Yarrow, Aster, Coreopsis, Coneflower, Gayfeather, Beebalm, Goldenrod, Veronica and Rudbeckia. For summer-long color add annual flowers such as Cosmos, Sunflower, Bachelor Button and Zinnia.

The zapping summer sound of bug lights may give us a certain grim satisfaction, but in reality they’re not all they’re cracked up to be.
Not only do they attract more insects into our yards, but they have been proven to kill far more beneficial insects than the troublesome ones.Ward them off with citronella candles instead.


Speaking of insects, bats are very good at keeping down the numbers of mosquitoes and black flies. In the roof of our old house, a sizeable colony of bats has been in residence for decades, and many people have remarked on the scarcity of bothersome insects in our garden. You can bring them into your neighborhood by setting up bat houses, which can easily be obtained or built, and set up on poles at the edge of the garden.

Fostering birds and animals add to our enjoyment, and help to preserve our special places. Even a small backyard can be important in the larger scheme of things, and will be appreciated. By taking the needs of wildlife into consideration, we make our homes a place that we can look upon as an oasis, and look forward to returning to year after year.

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Second Home Buying
2nd home Journal is a highly successful quarterly digital magazine for owners & prospective buyers & sellers of vacation homes, residential, investment & resort properties in the US and abroad. Visit 2nd home Journal's powerful web site, http://www.2ndhome.net

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/purchasing-land-for-a-second-home-seek-advice.html http://www.articletrader.com/finance/real-estate/purchasing-land-for-a-second-home-seek-advice.html Mon, 01 Oct 2007 00:00:00 -0500
Certainly many of the issues and challenge buyers purchasing land for a resort or second home will also present themselves in the purchase of such a home itself, whether existing or new construction. Lifestyle preferences, rental regulations, restrictive covenants; buyers will be confronted with all sorts of decisions and options in the purchase process of them both. But there’s one big difference between these two types of transactions: As obvious as it is, unimproved land doesn’t have anything on it yet, and the effects of this difference can have huge ramifications. Unfortunately, if you’re not careful or know what you’re doing these complications don’t become obvious until after it’s too late.

Put most simply, zoning and environmental regulations are getting stricter across the country, and buyers need to know this from the very start. Though there is still great variation in what is permissible from county to county and state to state, it’s pretty safe to say that just because a home has already been constructed on one parcel of land that doesn’t mean the same house can be built again on a different parcel nearby—or even rebuilt on the same parcel for that matter. It’s easy to get disappointed. You might find inspiration in a home only to discover that features that make it so appealing can no longer be built. That’s why, to help you both manage your expectations and guide you through the search for land and the transaction, it’s especially important to find a seasoned real estate professional who knows the area, one who understands and stays informed about the local, state and federal zoning, construction and environmental regulations that affect what you can and cannot make of the dream home you want to build on the one of the parcels of land you tour. (Even buyers with the intention remodeling the home they purchase also need to be aware of how these constraints will affect them.)

That said, it’s just important for you to “go to school” about those regulations yourself. In general, they fall into two types: environmental and “man-made.” Environmental policies dictate things like water use and waste system specifications and location. Knowing a little geology will help in this arena. A broad understanding of such things as the local water table, soil types and their percolation rates will help you comprehend why these regulations were established in the first place and have to be enforced. Man-made regulations, on the other hand, are policies that are in place to establish or maintain the area’s look, atmosphere and appeal—the very things that make it desirable in the first place. These include the same things mentioned above that also confront buyers of existing homes, in addition to regulations dictating building materials and design considerations. They can, however, be in effect for other reasons, too. Zoning calculations for the percentage of the parcel’s total area a home can cover might be dictated by water runoff; a home’s setback from the lot lines could be determined by its proximity to roads.

It all becomes very involved and complicated, with different governmental bodies each having jurisdiction on what can and cannot be built on a parcel of land. The local body will have its own regulations, but if the parcel has lake, river or stream frontage it could be subject to further restrictions by the state Department of Natural Resources, and perhaps by federal regulations under the Clean Water Act and possibly navigable waters regulations. Even the Highway Departments could have impact, establishing the set back of any structure built on a parcel with road frontage. The point is that it’s a bureaucratic jungle out there, and to negotiate it helps to have—at the very least—a broad understanding of the issues so you'll know where to find help when you need specific answers.

Of course, understanding the “whys” of what can be built on a parcel of land is only half the equation; you also need to understand the “how.” Just as a basic understanding of zoning and environmental regulations will save you grief and disappointment, a familiarity with the entire building permit process—all the hoops to be jumped through and a realistic timetable for approval—will also make the process seem smoother. For this reason, timing becomes a much more important factor in the purchase of land for a second home than the purchase of a home that already exists. Environmental regulations and zoning codes are always in flux, making what is permissible to build now impermissible down the road. Investment buyers, or those who don’t plan to build right after closing the property purchase, need to be especially careful since home plans that would comply with existing regulations at closing might no longer comply when you decide to begin construction.

That’s why Wade Hanson, former broker-owner of Leach Lake Realty of Walker, Minnesota and now COO of http://Lakeplace.com in Richfield, Minnesota, advises his land buyers to start the building permit process immediately after closing. “I recommend that land buyers find a builder before they even start shopping for land,” he says. With a builder who understands what they want in a home, buyers have a resource they can tap after they’ve selected potential properties to build on. “A quality builder should be able to examine a site and determine if he can construct the kind of home the buyers have discussed and even identify potential challenges in the project,” Hanson explains, “much in the same way a home inspector identifies potential problems in an existing home.”

All that’s important, but it may come down to finding the right real estate professional to help you. Buying land has its unique aspects, so find an agent who’s not only familiar with the area and its regulations but also has expertise in land brokerage, such as one who has earned the Accredited Land Consultant designation. Awarded by the REALTORS® Land Institute, ALC-designated agents have taken specialized training about land and its purchase to help you through the transaction.

Solving the unique geological and environmental challenges presented by a parcel of land is the key to laying a solid foundation for a home built upon it. Similarly, basic knowledge about zoning and environmental regulations, and the building permit process, is the solid foundation you need in your search for the land upon which to build your home. This will help you understand and reconcile yourself to the constraints and limitations—both natural and man-made—that can be placed upon what you’re able to build on the parcel of land you choose. There’s no guarantee that there won’t be any unanticipated challenges, but with a clear view of the land purchase process, the vista from your new home won’t be obstructed by memories of unexpected hardships and compromises you had to make because of the parcel of land you purchased.

Sidebar: Does Your Second-Home Purchase Add Up to 1031?
Check the Facts, Do the Math
The purchase of a second home or resort property is often preceded by the divestment of another property. What if these two transactions could be combined into a single transaction and in the process the payment of any capital gains taxes could be deferred? This may sound like too-good-to-be-true slight-of-hand, but that’s exactly what the Internal Revenue Service allows under Section 1031 of the Internal Revenue Tax Code, through something called a like-kind exchange. It works like this.

First, and probably most importantly, both the “relinquished property” and the “replacement property” must be held for investment or business purposes. Primary personal residences do not qualify, but since many resort and second-home properties are investments, as well as for personal use, that beachfront condo in Florida you want to sell to purchase a house on the Intra-coastal could make the grade. There’s a catch, though: the 14-Day Rule. Under it, a property is considered a personal residence if it was owner-occupied more than 14 days or ten percent of the total days it was rented at fair market rates during the year, whichever is greater. Allowances are made for days you spend on repair and maintenance, but the rule also applies to occupancy by family members, below-market rentals and to any arrangement where you gain use of another property.

Next, the transferred properties must be “like kind,” though within the context of Section 1031, any real property held for investment or business purposes qualifies. And while the replacement property does not have to be acquired at the same time that title of the relinquished property is transferred, it does need to be identified within 45 days and the exchange, including title transfer, must be completed within 180 days, or by the time the return for the tax-year of the exchange has to be filed.

It sounds pretty simple—and at its core that is the beauty of 1031 exchanges—but these are just the basics. There are strict rules that must be followed to reap the benefits, as well as avoid any penalties. Other factors can also affect the transaction. For instance, the replacement property must be held for five years and any “boot”—cash or unlike property received in the exchange above and beyond the real property—is deemed taxable gain, levied at it’s fair market value.

The entire process requires a team of specialists, accountants, attorneys, real estate professionals. But not only can they help you understand the basic rules governing 1031 real property exchanges and guide you through the transaction, they also recognize when 1031 exchanges create tax-saving opportunities. The situation can vary greatly. Diversification, estate planning, relocation, financial strategies, life style changes, consolidation, under different circumstances 1031 exchanges present advantages and disadvantages regardless of the motivation for the sale or purchase of property.

The circumstances for every second-home buyer are unique, but if you’re selling a property in addition to buying one, you owe it to yourself to at least do the math and see if the formula for you adds up to “1031.”

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Second Home Buying
2nd home Journal is a highly successful quarterly digital magazine for owners & prospective buyers & sellers of vacation homes, residential, investment & resort properties in the US and abroad. Visit 2nd home Journal's powerful web site, http://www.2ndhome.net

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/the-dominican-republic-bi-coastal-beauty.html http://www.articletrader.com/finance/real-estate/the-dominican-republic-bi-coastal-beauty.html Mon, 01 Oct 2007 00:00:00 -0500
Until a few years ago, the D.R. (as it is affectionately called by many) was considered a second-rate destination by many travel and tourism experts. As a result, many affluent Americans seeking second homes largely stayed away. Many of the former objections have been overcome by immense public and private investments that have brought rapid improvements to the island. Now being touted as the most affordable Caribbean destination by many travel writers, the D.R's half-discovered quality may not last much longer.

Among many other attributes, the D.R. has some of the world’s most beautiful beaches and an average of 320 days of sunshine each year. The recent five million dollar investment in the expansion and improvement of the island’s infrastructure is also making the island more attractive to foreign visitors and prospective second homeowners.

Huge investments are being made in the development of resort communities in the D.R.. The magnitude of these investments and increased demand has resulted in a growing number of regular flights from the U.S. And, the D.R. is now the number one country in the Caribbean for telecommunications, with extensive cell phone coverage and internet access. All these factors have combined to position the D.R. to become an even more popular tourist and second home destination in 2007. Many real estate analysts are predicting that this trend towards increased tourism and foreign investment in real estate will continue unabated well into the next decade.

Purchasing real estate in the D.R. is a relatively easy process. Compared to more restrictive laws in other countries, there are few legal prohibitions preventing a foreign national from purchasing real estate in the D.R. Many foreign nationals have successfully and profitably invested in D.R. real estate and have done so for many years.

Foreign investment in properties on the island ranges from luxurious all-inclusive resorts, condominium complexes being built as second homes to upscale single-family homes, villas and estates. A significant contributor to the growth in foreign property ownership is made up of an increasing number of U.S. residents seeking second homes with rental income potential, according to MRI Overseas Property, a large real estate firm based in Spain that sells Dominican properties.

With a comparatively low cost of living and easy access from the U.S., many people are finding the D.R.an ideal place for holidays and vacation homes. Compared to many other markets it is relatively inexpensive to buy and maintain a second home in the D. R. Another attractive feature of property ownership on the island is that there are virtually no property taxes. In addition to vacation homeowners, the reasonable cost of living has also attracted an increasing number of foreign retirees.
The D.R. has more than 800 miles of coastline with expansive fine white sand beaches. Beyond the beaches there is much unspoiled natural areas all around the island. There are 16 national parks, nine natural monuments and six scientific reserves on the island. There are 67 “protected areas” which include panoramic roadways, recreational areas and ecological corridors.
The “two coasts” of the D.R. both hold their own allure.

Highlights of the South Coast
The South Coast, (sometimes called the Caribbean Coast), has many miles of spectacular coastline, Santo Domingo, the vibrant capital of the Dominican Republic, is located on this coast. It’s known as the “birthplace of the Americas”. It was the first European city of the Western Hemisphere, founded in 1496 by Christopher Columbus’s brother, Bartolome Colon. Today it is a cosmopolitan city with a population of 2.5 million. It is the largest city in the D.R. Urban features include a great diversity of nightlife, great restaurants and shopping, along with museums, ballet, opera, and a baseball stadium (baseball being the national sport).

The city’s colonial heritage is preserved in the Colonial Zone, where many structures date back to the 16th century.
East of Santo Domingo is the slower paced town of Boca Chica. It is home to the largest reef-protected ocean lagoon in the Caribbean. The waters of the lagoon are shallow, clear, and calm. There are several all-inclusive hotels in Boca Chica, as well as many smaller hotels, restaurants and bars.
East of Boca Chica is a beautiful area known as Juan Dolio. It’s more tranquil and less hectic than Boca Chica. The area has a mix of private villas, condominiums and all-inclusive hotels, as well as the 18 hole Los Marlins Golf Course. Ten minutes away is San Pedro de Macoris, the nation’s third largest city, best known for being the home of many talented U.S. major league baseball stars.

La Romana, about 90 minutes east of Santo Domingo is home to Casa de Campo, a 7,000 acre property including two 18 hole championship golf courses, including the famous Pete Dye-crated Teeth of the Dog, The area has many exclusive private villas as well as regular hotel accommodations. On a high bluff just east of the resort is Altos de Chavon, an unusual artists community designed to resemble a 16th century Mediterranean village. Among other features, Altos de Chavon has a 5,000 seat amphitheatre as well as many shops and restaurants
Just east of La Romana is Bayahibe, a small fishing village surrounded by a number of beautiful all-inclusive resorts fronting on miles of white-sand beaches. Ongoing expansion in this area will see several new resorts in coming years.

Touring the North Coast
The North Coast Highway is a well-maintained, two-lane road that follows the coastline alongside stunning beaches. It passes through many typical Dominican villages interspersed with ever-changing, sometimes breathtaking tropical vistas.

Even though the roadway passes through what appear to be areas of tropical wilderness, you are never far from an oasis of civilization. The North Coast presents a combination of friendly islanders, a lively Latin culture, and many bohemian expats, including artists and writers from all over the world. It all makes for an unusual, fun, captivating and safe place to spend a Caribbean vacation or to search for your second home.
The north coastal highway offers the choice of many towns and resorts with easy access to an airport at. Puerto Plata City, one of the principal population centers of the North Coast. It’s a center of regional commerce, a port city and the capital of the Province of Puerto Plata. The city curves around the base of towering Mt. Isabel de Torres. The summit with its manicured botanical garden can be reached by a sky lift called the teleférico. Other hallmarks of the city are its busy, narrow streets, quaint colonial and Victorian architecture and a wide oceanfront boulevard that ends at an historic 16th century Spanish fortress.

Cofresi and Costambar are two adjacent communities to the west of the town center that feature some of the best beaches in the Puerto Plata area. Both towns are popular with retired expatriates, and there are many villas and condos available for rent by owners. Oceanfront properties can still be found in this area for what would be considered very little, compared to other Caribbean locales.

The Playa Dorada Resort complex is about 20 minutes drive from Puerto Plata. It is a collection of more than a dozen all-inclusive hotels and resorts that offer a country club setting, featuring low-rise structures spread out through a very lush tropical setting. The three-story maximum height restriction emphasizes the natural vegetation rather than the built environment. Some are on the beach, others wrap around a Robert Trent Jones-designed golf course.

Sosua is a vibrant Latin town centered on a spectacular beach and bay. The town has a wonderful assortment of hotels, bars and restaurants. Unlike the controlled environment of the all-inclusive resorts, Sosua affords plenty of opportunities for interaction with local Dominicans. This charming town is considered a must see by many repeat visitors to the D.R. It’s also a center for real estate sales for much of the North Coast.
Cabarete is a town with a beautiful beach that has been called one of the best windsurfing spots on the planet. A variety of hotels, restaurants, bars and windsurfing centers are located along a single beachfront strip.

Other places of interest along the North Coast include La Isabela, the first permanent settlement built by Christopher Columbus on his maiden voyage in 1492. Rio San Juan is a coastal town known for boat tours through a mangrove-choked lagoon. Just outside of town is Playa Grande, a beautiful beach and a championship golf course being developed for resorts planned for the area.

At the eastern extreme of the north coastal highway lies the beautiful Samana Peninsula. It’s a region of spectacular hills that feature a vast forest of coconut palms. The towns of Samana, Las Galeras and Las Terrenas are charming Dominican villages with some cosmopolitan flair imparted by many of the U.S. and European expatriates that have settled in the area.
Cabrera is a serene agricultural region that is attracting affluent foreigners who are building luxurious countryside estates.

With this brief overview, it is apparent why the allure of the Dominican Republic’s varied coastline is drawing a growing number of foreign tourists and second home owners. With some reasonably priced properties available in this island nation, it is definitely worth a vist (or two, or three). And did we mention that there are also two mountain ranges that run through the interior of the island? We’ll leave that for our next visit.

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Second Home Buying
2nd home Journal is a highly successful quarterly digital magazine for owners & prospective buyers & sellers of vacation homes, residential, investment & resort properties in the US and abroad. Visit 2nd home Journal's powerful web site, http://www.2ndhome.net

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/buying-investment-property-financial-independence.html http://www.articletrader.com/finance/real-estate/buying-investment-property-financial-independence.html Mon, 01 Oct 2007 00:00:00 -0500
If you already own a second home or investment property, odds are that you’re well on your way to becoming one of the top five percent in the country that will be able to retire financially independent. Although the statistics are staggering, they make absolute sense. If you take a serious look at what asset a majority of people will rely upon most when it comes time to retire – you will find that it would be there home. Surprisingly, not many people consider investing in real estate when planning for their retirement, their future, and their childrens’ education costs. Sadly, even as the second home market continues to boom, many people still do not consider real estate as part of their financial portfolio – until it’s too late.

With an appreciation rate far more rapid than any other U.S. industry, the real estate market is a viable resource for building wealth. Real estate has always been one of the safest, most profitable investments. One reason is due to the fact that real estate is a limited asset with unlimited demand. In addition, many people are attracted to the concept of leveraging: making money with borrowed money. Who wouldn’t want to use the banks money to make money? Banks are always ready to part with money (loans) for real estate investing because unlike other forms of investing, real estate is a tangible asset.

It’s also important to keep in mind that when it comes time to sell, a well-leveraged investment property will have a return that far exceeds the initial down payment. In addition, if you choose to rent it out, your tenant is paying down your mortgage; essentially buying the investment for you.

When looking to buy your next property, there are a few things to take into consideration in order to reap the rewards of a wise investment First, consider the location – make sure you purchase a property in an excellent area where many people want to live or recreate. Will you be renting it out to cover the mortgage? If so, make sure you purchase in an area that has a healthy rental market. For example, if you purchase in an area of the country that boasts year round warmth – you are guaranteed to find tourists willing to pay for a ‘place of their own’ that offers resort-style amenities with nearby access to shopping, restaurants, golf courses, beaches, recreational spots, etc.

Identify your long-term and immediate financial goals – do you have young children who will require savings for their education, or are you looking to retire sooner rather than later? Such questions should have a huge impact on your decision. Make sure the whole family is on-board - and if you can – make it a family affair. Find out which parts of the country have the most stable economies, consider cities with state universities, low risk for natural disaster, and find out about tourism. Research national appreciation rates to target the best cities for investing and, if possible, ask others who have purchased a second home in the area how they feel about their investment.

After your second home or investment starts to appreciate, you will start to feel more confident and real estate savvy. It’s always best to buy in a buyer’s market and sell in a seller’s market – so when you own property, stay abreast of the local and national real estate trends. Stay in touch with your Realtor and have them keep you updated as well.

Finally, the most important thing you can do when you own investment real estate is to hold onto it for as long as possible. Therefore, when you are looking to purchase additional real estate, ask yourself if this is a place where you would want to live or visit? Ten to 15 years is an ideal length of time to hold onto a good piece of property. If you take into consideration location, economy, weather, tourism, and the quality of the home itself - you will soon reap the rewards of a well-executed, thoroughly researched purchase that will result in a very healthy return on your investment.

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Sharon Rizzo, President, and Santo Rizzo, CEO, of The Rizzo Realty Group, are national real estate investment experts with over 30 years experience marketing and selling real estate in the primary, secondary, and investment market. To find out more about their investment opportunities, please visit www.rizzorealtygroup.com.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/remodeling-your-second-home.html http://www.articletrader.com/finance/real-estate/remodeling-your-second-home.html Mon, 01 Oct 2007 00:00:00 -0500
When considering an addition or extensive remodeling job, it’s vitally important to have a preliminary evaluation done that addresses the condition of the existing structural, mechanical and electrical systems. This is especially true in older buildings. The older the building, the more likely it is that conditions exist that do not meet current codes or that may require preliminary repair and remediation at far greater cost than the same project done in a newer building.

In older structures it is sometimes referred to as ‘the mushroom effect of remodeling’. Ask anyone who has been through a major remodeling project on a vintage property. Better yet, ask a remodeling professional. It’s the unknowns that seemingly appear out of nowhere that can cost the big bucks. It is the moment when your contractor takes a look inside the walls after gutting a space to be remodeled and says something akin to “I didn’t think it would be THAT bad.” Not exactly a confidence building line.

Planning
Whatever the scope of the project and whether your property is new or old, owners of second homes, anticipating a major remodeling project, should take great care in planning the job in detail and seeking several quotes from several reputable contractors.

In order to develop the optimal set of plans and drawings, it is best to employ a design professional. A thorough planning process, coupled with accurate renderings is crucial to limit potential cost overruns and in achieving a desirable end result.

Stories are legion among contractors and homeowners about projects gone wrong. If the worst comes to pass, it can be an awful situation for all concerned, resulting in serious financial and sometimes legal disputes. Successful planning can significantly reduce the dreaded ‘change orders’ which always result in raising the cost of a project.

Whether you engage an architect, work with a design-build firm, or do your own design work (the least desirable choice unless you or a member of your family are design pros), homeowners should invest in comprehensive planning before anyone picks up a hammer or wields a trowel. Build every detail on paper first.

If you choose to employ an architectural firm, it’s important to know their track record on earlier projects. Do they have a history of providing detailed plans on a timely basis? Another important quality in a design professional is the ‘realist’ factor. Does the designer have a history of producing coherent, practical and buildable plans, with a minimum of complexities? And perhaps most important, how well does the designer work with area contracting firms from whom you will be seeking bids? For information on architectural firms in your area, you can access the database of the American Institute of Architects www.aia.org.

As an alternative to working with an architectural firm, you might find the ‘design-build’ business model, in which an experienced construction firm employs in-house design experts to smooth the complex process of moving from the planning stage to the finished project. A good overview of the subject that includes a list of design build firms is available at www.dbia.org/index.html.

If you are computer savvy and would like to try your hand at doing some of your own design work, there are a number of online resources that offer a wide variety of tools to help in creating drawings and plans. There are also fee-for-service firms online that will do a professional rendering of your plans. One such firm is www.virtualarchitect.com.

Once the initial plan is completed, the next step is to study the plan exhaustively. With plan drawings in hand, do a walkthrough of the space to be remodeled. If you engage a design pro, make this walkthrough a part of the cost basis for their professional services. Check every detail. If anything appears to be out of order, or you have any questions about the plan, this is the least expensive time to make corrections. Take your time with this process. It’s far better to overspend on the plans than to make changes during the construction phase. Remember, vague plans that overlook even relatively simple details can cause confusion when a project is in mid-course.

If you want to fully understand the true meaning of the term ‘cost overrun’, it is worth contemplating a project that is suspended because a defect in the building plans results in a conflict between the plumbing and electrical subcontractors (or the masonry contactor and the landscape architect, etc.). Every hour of delay in such a situation can result in hundreds of unbudgeted dollars being spent. Every omission and misunderstanding that occurs on your project will increase costs above the initial estimate adding the expense of time and materials that result from any changes. Missing details can easily increase your costs (in the affected part of the project) by 100-300 percent.

Remember, there is no such thing as a perfect plan. Even the most meticulous planning can be confounded by the unforeseen, particularly when working with older buildings. It’s always prudent to add some padding to your budget to account for the unexpected. Even a project with plans that are 90 percent accurate can still end up costing more than the estimate. Remember, it’s more likely that your plan will be closer to 75 percent accurate.

If resale value of your second home is a concern, another aspect of planning that should be taken into consideration when remodeling relates to ROI, or return-on-investment. This factor is not always in the forefront when planning a remodeling project. For some, it may be no consideration at all. If you don’t intend to maintain long-term ownership of the remodeled property after completion and ROI is a concern, it should be borne in mind that remodeling projects featuring the best returns involve ; re-siding, bathroom, and kitchen remodeling, in that order.

Selecting a Contractor
Friends and neighbors often provide a ready resource for the names of possible contractors. If you want to find licensed remodeler in your area, you can contact the National Association of the Remodeling Industry www.nari.org. Their site also provides useful tips on how to select the right remodeler for your job.

Whatever method you employ to decide which contracting firms to contact for bids on your project, it’s a good idea to check with the Better Business Bureau www.bbb.org and your State’s Attorney General’s office for any complaints that may be on file related to the contracting company. You should also ask that the bidding firms are properly licensed and carry adequate insurance to cover the scope of your anticipated project.

As a general rule, it is best to obtain at least three competing bids. Bids should include a list of products, materials, labor costs and a timetable. Material and product allowances should give prices and quantities.

The bids should be accompanied by multiple verifiable references. Ideally, the references provided by the bidding contractor should be relatively recent and should be based on projects of similar scale as your own. If it is possible to obtain a reference from an earlier customer, it can be useful to contact them to see how the contractor’s work has withstood the test of time.

It’s important that you follow through on contacting one or more of the references Don’t be satisfied that you have been provided names on a piece of paper. It is not out of order to ask if you can see one or more examples of the contractor’s prior work. Ask the references if their job was completed at or near budget, and if the contractor kept them well informed of progress during the project. Make certain that there are a number of dependable options available to keep in touch with the bidders, either through their full time office staff, or via e-mail, pager, cell phone or fax.

The bidding process is your first chance to evaluate an aspect of the work product of a potential contractor. If you approach a contractor for a bid and an estimate is not forthcoming in a timely fashion, move on to the next firm on your list. If a contractor is unable (or unwilling) to provide you a bid in a reasonable period of time, this may well reflect on how they may perform on a project and at the least raises questions about their ability to deliver a finished project on time and within budget. Positive responses to your inquiries of a referral can be an extremely useful tool in evaluating competing bids.

When you obtain bids, be aware that it is customary for the successful bidder to secure a deposit at the time the contract is signed. As a general rule, established firms that provide high quality work do not require large deposits up front. Deposits in the area of 15 percent of the agreed contract are common in the industry. Firms seeking a deposit that represents significantly more than 15 percent should be approached with some caution. Successful building firms ordinarily have enough established credit to finance project related materials and services in ongoing projects.

Beware of using price as the primary factor when selecting a contractor. It is a common error to select the lowest bid, only to find out that the contractor chosen was not the right company for your job. Remember that quality work commands a premium price.

The three bids you receive are apt to vary widely. If this is the case, you should ask for an explanation from the bidding firms to explain the discrepancies. Sometimes a low bidder has neglected to include one part or another of the project in his bid. Choosing the right contractor, based on a fair price and skills that mesh well with your needs will avoid the countless headaches caused by choosing the wrong company for the job. Excellent planning, mutual trust , and a willingness by both parties to keep open the lines of communication, will all reduce the chance of costly errors taking place.

Remember to use all of the tools of modern communication available to increase the efficiency and clarity of the give-and-take that takes place during the building process. E-mail, scanned or faxed documents, drawings and digital photos can provide an efficient means to keep abreast of what is happening on site and can save you repeated round trips to your property to keep an eye on the details of the ongoing work.

If you have any questions about your upcoming remodeling project, we will do our best to find answers for you. We are always interested in hearing stories about projects already completed for possible review in future articles on remodeling second homes. Good ‘before and after’ pictures are especially useful. Contact us with any questions or story ideas you may have on this or related subjects.

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Second Home Buying. Tim Menk is a staff writer for 2nd home Journal, a highly successful quarterly digital magazine for owners & prospective buyers & sellers of vacation homes, residential, investment & resort properties in the US and abroad. Visit 2nd home Journal's powerful web site, http://www.2ndhome.net

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