As the saying goes, you have to spend money to make money. Of course, everyone wants the promise of a great return-on-investment (ROI) on home renovations, but not all projects will yield a lofty payout. Decisions today can make or break a sale years down the road. So how does one choose which projects to tackle? Real estate guru Homeadvisor.com states these are the top five remodeling projects that will give homeowners the best bang for their buck:

FIBERGLASS INSULATION: 107.7% ROI: New insulation isn't exactly #1 on a home owner's to-do list, but those puffy sheets of energy efficiency will warm wallets with long-lasting savings. Insulation may not be pretty to look at, but it saves money and improves comfort.

ENTRY DOOR REPLACEMENT: 90.7% ROI: Secure and attractive! A quality steel door is a great choice for a home upgrade, plus it provides extra security and prevents unwanted drafts.

MANUFACTURED STONE VENEER: 89.4% ROI: Cheaper than natural options, engineered stone siding will give a home the revival it deserves while keeping the budget in mind. And as a bonus, today's fabricated products look just like the real thing! Natural stone also tends to put stress on the frame and foundation, so it's a win-win for this lighter alternative.

GARAGE DOOR REPLACEMENT: 85% ROI: Not only an aesthetic renovation, replacing the garage door also serves other purposes such as improved security and energy efficiency. A fresh design will surely give the home's exterior a boost in curb appeal.

MINOR KITCHEN REMODEL: 80.2% ROI: Small kitchen remodels ranging from $5,000 to $25,000 boasts a favorable return. Kitchens tend to be the hub of the home, so it only makes sense to make it work in your favor. Whether simple changes or reflowing the layout -- improving the design and usability of the space will pack a punch.

While much of the country is experiencing a healthy resurgence in home building, what is also going strong is the market for additions and renovations. For many reasons, today’s homeowners are still very likely to consider remodeling their home. For those handymen and women that are up to the challenge, tackling home improvement projects on their own can be a very rewarding experience. On the other hand, for many average Americans, DIY isn’t an acronym on their resume. Whether it’s an expanding family that needs more space or a frightfully outdated avocado green kitchen that begs for a facelift, homeowners will be scouting out professionals to get the job done.

According to economists, the current demand for home-improvement is healthy. Per the latest Remodeling Index, remodeling activity nationwide has continued to grow and is projected to keep rising. Demographics tend to play a big role in future prosperity. As baby boomers retire, the likelihood of first floor bedrooms and bathrooms or wider doorways and hallways become a reality. On the other end of the spectrum, housing affordability may sway millennials’ decision to purchase older existing homes that will command renovations. And lest we forget Mother Nature. In the wake of the tragic flooding and hurricane-ravaged areas, countless homes have been compromised. It may be too early to tell what type of impact these storms will have on the marketplace, but rebuilding and renovating will not be a piece of cake.

How does your business fit into this niche? If you’ve been focusing solely on new home construction and haven’t given much thought to remodeling, perhaps now is the time to investigate. Could it be that you are in a position to aid in the recovery of storm-affected areas? Or simply think forward to January or February. For half of the country, the cold, winter months are right around the corner and new construction may wane. Several home improvement projects may be just the thing to fill in the gaps.

Ready to kick it up a notch? Why not check out the RWC Remodeler Warranty? Having a written warranty effectively reduces misunderstandings that can result from a verbal agreement and a handshake with clients. With RWC’s insurance backed protection, homeowners can be confident that you are a top-notch craftsman and that their remodeling project is a worthy investment.

Did you know that allergies are the sixth leading cause of chronic illness in the United States? In fact, more than 50 million Americans suffer from allergies each year; and asthma affects more than 25 million. How do you, as a builder, tackle the respiratory issue from the ground up? Clean "healthy" homes are becoming mainstream and it is where homebuyers are turning in order to combat some of these problems.

The urge for wellness is compelling, however, building a healthy home can be a catch 22. While trying to prevent outdoor pollution and pollen from sneaking inside due to drafts and leaks, a home that is too airtight can actually be more tainted. Energy-efficient, well-sealed homes can trap chemicals and other irritants.

There are several factors to contemplate when trying to find that perfect balance of air quality. If healthy building standards are important to your buyers, consider these points when strategizing materials, schedules, and budgets.

• Conduct third-party certified air-quality tests to assess the particulates, then improve upon those numbers.

• Provide balanced ventilation to distribute and filter air properly. By keeping air changes to a minimum, drafty corners of homes will stay free of dust and will ensure fresh air is circulated throughout the home.

• Carbon monoxide is odorless and fatal, so it’s essential to install CO2 detectors on every floor.

• To decrease the problems from chemicals being emitted from new building materials, use as many natural products as possible. For example, select cabinets made of real wood or choose solid surface kitchen countertops such as slate, granite, or marble. This eliminates the adhesives associated with laminates.

• Taking the proper precautions to prevent mold growth is a no-brainer. Exterior insulation will warm the exterior sheathing so that the inside face of the sheathing does not become a condensing surface. Condensation in the walls means moisture which may lead to structural issues in the future. It’s also important to properly flash exterior penetrations, windows, and the roof to move water away from the home. Once water finds its way in, the home is no longer truly healthy.

• And last but not least, take pride in your work and keep a clean worksite. Clients want transparency, so by snapping a few photos of wall cavities that are free of sawdust and dirt reinforces your integrity and commitment to a healthy home.

Let’s talk about you. Do you build at least 20 homes per year? Or do you build at least $2 million in sales volume?

If you can answer yes to either question, have you considered joining our exclusive Incentive program?

The Incentive program is a great way for qualifying Members to effectively reduce their overall warranty costs by maintaining a high level of quality construction and customer service. Members receive “cash” back for a good claims record.

The idea behind the program is that if you have a good track record regarding claims issues for the 1st 5 years of your home enrollments, then the warranty company lets you “cash in” during the 2nd 5 years and earn back some of those premium dollars.

Both you and the warranty company chip in an initial minimum deposit to open up an Incentive account. Every time you enroll a home while in the Incentive program, the warranty company redirects a portion of the premium you’ve paid us into an account. As homes are enrolled, the fund grows. If you have a claim or hard-cost expenses (think Engineer’s structural inspection or geotechnical soils test) relating to a claim, we use this fund first – because those were insurance premium dollars that were being set aside rather than being paid to the insurer. If you don’t have a claim, the fund just keeps on growing.

Then beginning in year 6 and continuing through year 10, you start to receive checks back from us based solely on your own claims experience. It’s like betting on your own track record that you won’t have serious major structural defects in your homes.

If you have claims, you haven’t lost anything because you’ve paid the exact same rate that you were paying before joining the Incentive program. If you don’t have claims, you “cash in” and stand to get back up to 15% of your premium dollars.

After the first year, we’ll even waive your annual registration fee of $295 for every year that you participate in the program. That saves $1180 for your bottom line over the first 5 years even if you never get one penny back in distributions. It’s pretty much a win-win proposition.

So again I say, let’s talk about you. Can we help you cash in? Call us today at 800-247-1812, Ext 2149 for a free, no obligation illustration based on your company’s numbers and let’s see if we can help you benefit a little more from your good customer service.

Ah, fall is the air. Are you ready for brilliantly colored leaves, pumpkin flavored treats, apple cider, or, ARE YOU READY FOR SOME FOOTBALL? George Will once said, “Football combines the worst two things about America: violence punctuated by committee meetings”. What that means is that for the next five months many Americans who tune in to NFL games will be watching a lot of TV but, in actuality, very little football. Several studies including one by the Wall Street Journal have calculated that although an NFL game lasts about 3 hours and 12 minutes there are only a mere 11 minutes of actual play time that takes place. Why is that? One big culprit is the rules. The paperback version of the NFL rulebook is close to 300 pages in length and filled with rules and regulations that address almost every possible scenario that could take place during a game. And while the rules may seem excessive and overbearing, they serve to ensure the uniformity, integrity, and safety of the game and its players.

Rules impact nearly every aspect of our lives. We can’t get away from them, nor should we. There are rules for governance, conduct, mathematics, grammar, driving, even cooking and the list goes on and on. It is fair to say that without rules there would be anarchy. Rules provide a society with structure and accountability. As a builder or manufacturer, you too are subject to a unique set of rules that address every aspect of your homebuilding from development through settlement. And, if the rules aren’t followed, there can be big problems. Without proper site preparation, foundations can fail. Without proper flashing, homes will leak. Without proper placement of beams, loads won’t be supported. Without proper spacing between joists, floors will sag. And this list too goes on and on.

The good news is that if you are an RWC, HOME of Texas and/or MHWC member builder, only the best of the best are accepted into their program…builders/manufacturers that follow the rules. Your homebuyers can be assured that you have met the company's high standards of quality workmanship, financial stability, and ethical customer dealings. And, then there’s the rulebook…The Limited Warranty Agreement. Your homeowners are given a set of rules, in writing, that explains what’s acceptable, what’s not and what steps to follow. What a great way to show them your integrity and how much you care about the product you deliver. Vince Lombardi once said, “Perfection is not attainable, but if we chase perfection, we can catch excellence”.

Typically home buyers have the choice of two types of homes on the market: resale or new. According to NAHB, home buyers planning to buy (or build) a brand-new house or condo often cite energy efficiency, an open floor plan, a warranty, and being able to select specific items such as appliances, types of flooring, and colors schemes as factors driving their choice.

Let’s talk about that one intangible product homeowners want that isn’t used or seen on a daily basis - a warranty. Friends and family may admire the great room’s high ceilings or ooh and ahh over the gourmet stove, but that doesn’t make a warranty any less attractive. In the event that a home would develop a Defect, a homeowner will be grateful that their Builder was savvy enough to protect their home with a warranty. The average cost to repair a major structural failure exceeds $30,000. Having a written and insured warranty in place on the home means that warranted structural components will be repaired without causing the homeowner serious financial hardship. Now that kind of peace-of-mind is truly priceless.

The numerous advantages of having a warranty on a newly built home simply go beyond words on paper. It's a state of mind -- a feeling of security and comfort. In fact, a new home warranty from Residential Warranty Company, LLC (RWC) is one of the least expensive, longest lasting products a builder can purchase for the homes they build. It brings incredible value to the table not only for the builder and the initial sale but subsequent resale value as well.

With over 3 million homes warranted and 35+ years’ experience under our belt, RWC and affiliates have established itself as a rock solid leader in home protection and risk management. So we ask, besides your standard 10-year warranty, how else can RWC help you and your buyers?

Remodeling? There's a warranty for that. Building a modular or log home or working on a commercial project? We have that covered, too. Or maybe you’re looking for something a little more customized for the state you build in? We’ve got an exclusive for you! RWC’s Customized State Warranty (CSW) Program is the most unique and specialized warranty program in the industry. Each individual state warranty is crafted to meet that state’s statutes regarding new home warranties. Also available are free training session for your staff, free marketing materials, and various commercial lines of insurance including general liability, builder’s risk and contractor’s equipment exclusively for members through the RWC Insurance Advantage.

Whether you are brand new to RWC or a longtime member, know that we are here to help you provide the peace of mind that homeowners crave. Be sure to take full advantage of the numerous warranty options and services.  Don’t miss this opportunity to give your buyers the best house warming gift yet!

A simple number can really give you perspective. Perhaps you were on the fence about doing more remodeling? Or are trying to brainstorm ideas for a fresh take on the homes you build? Consider these numbers and be inspired to try that new kitchen design or implement features in your homes for the aging population, for example. ...Or simple impress your colleagues with some fun industry facts!

3.5 PERCENT
Percentage of current housing stock that offers all three of these features to support independent living for an aging population: zero-step entrances, single-floor living, and wide halls and doorways.

1901 SQUARE FEET
Average U.S. home size, which is nearly 30% larger than European homes, but smaller than the Australian average of 2032 sq. ft.

$3.1 BILLION
Size of the kitchen and bath remodeling industry.

60 PERCENT
The percentage of contractors that said the number one way to drive up costs is when homeowners ask for changes after a project begins. These changes increase the cost by an average of 10 percent.

When most insurance agents hear the RWC Insurance Advantage offers Claims-made general liability coverage, they warn their general contractor customers to stay away from it. They say you’ll be trapped by the “gap” in coverage that will open up the moment you try to leave. What happens upon termination of coverage is one of the biggest arguments against Claims-made. The way some agents talk, you’d think Claims-made is like the old children’s poem “The Spider and the Fly;” “Will you walk into my parlor?’ said the Spider to the Fly.” We know the fly enters - never to leave. These agents argue there would be no coverage for any claim made after policy termination even if the loss occurred during the time the policy was in force. And they would be right – with any other company’s Claims-made policy. Those companies will offer you a Supplemental Extended Reporting Period, or SERP, at the end of your policy term when you try to move your coverage to another company. They will charge you up to 200% of your expiring policy’s premium for the SERP. Who can afford that and the new policy premium as well?

This WILL NOT HAPPEN with the RWC Insurance Advantage’s unique Claims-made policy. With our policy, the SERP is offered UP FRONT, and we GUARANTEE that it will be attached, as long as your policy is not canceled for non-payment of premium. Rather than charge a large lump sum at the end for the SERP, we add a reasonable 25% charge to each policy term, and you have 6 years to pay it off. After that, the SERP is fully funded and we GUARANTEE it’s attachment at policy termination - no matter what. Even better, if you decide to leave before the 6 years are up you’ll still get the SERP - and NO COVERAGE GAP.*

The SERP is unlimited in duration and can never be canceled for any reason. It automatically restores limits that may have been used up by prior claims. Even if you decide to move your general liability coverage somewhere else after just one year with the RWC Insurance Advantage, you’ll still get the SERP – guaranteed.

So, walk into our parlor anytime without fear of being trapped. Call us at (866) 454-2155 and ask for Ron Sweigert or click here for a free no obligation quote.
(*Subject to short rate premium penalty if you cancel your current policy before its expiration date.)

As the economy continues to improve, builders are gaining more and more confidence in their business' future. Tides are shifting from builders only treading water to keep their company afloat, to moving forward and expanding profit margins.

The number one cost for builders is direct construction expenditures. Simply reducing costs, even modestly, and strategizing ahead of time will unmistakably help you reach your goals.

Check out the following suggestions and tips and implement them into your business plan to maximize your bottom line.

• Design your new models to attain a predetermined direct construction percentage rate based on the anticipated sales price. A model will not be acceptable if it exceeds a recommended percentage.
• Consider the cost of the lot to determine “how much” house you can build.
• Identify base-model features that can be replaced with more economical items without reducing the home’s appeal. Include input from subcontractors and suppliers about potential cost reductions including design alternatives and worker efficiency.
• Include all options and upgrades within each job’s budget.
• Determine the target gross profit as a component of the budget before starting a project.
• Avoid estimating by square footage. Unless the materials are identical, the site work known, and weather conditions constant, pricing by square foot often leads to inaccurate quotes and underpriced bids.
• Keep the specs simple. Too many options will limit the number of potential buyers.
• Re-estimate immediately after completing the first unit of a new plan to evaluate if additional costs should be considered for subsequent units.
• Create detailed direct construction budgets on model/display homes, just as you would with any other home. Display homes tend to evade the normal budgeting process, leading to higher costs and reduced profits when ultimately sold.
• Perform periodic walkthroughs to control costs and ensure materials are being used as intended. Project managers, superintendents, estimators, and designers should all participate in walkthroughs.
• Develop strong relationships with a select group of subcontractors and suppliers. Constantly switching subs and vendors in search of minor savings can be counterproductive. Try to work with your regular subs and vendors to find savings together.
• Schedule together with your key subs. This will result in a much more accurate schedule than if you created it yourself, and the subs will feel more responsibility to meet their milestones.
• Change orders should be documented using only written forms. This allows both you and the buyer to sign the change order, which should list the change, adjusted total price, and necessary schedule revisions.
• Don’t be afraid to raise prices, especially in a good market. As your costs increase, many of these should be reflected in the sales price. A regular price increase program should be in place.

Source: nahb.com

Why is it important to worry about safety when it comes to wet concrete? Because concrete is one of the most widely used construction materials there is, which means there are an untold number of workers who are exposed to these hazards on a daily basis. The biggest hazards include skin irritation, severe chemical burns, and serious eye irritation. Concrete can be safe when used appropriately and with the safety precautions below.

• Wet cement (an ingredient in concrete) is caustic, abrasive and drying, so protect your skin. Wear appropriate PPE such as tall rubber boots, pants, waterproof gloves and long-sleeved shirts.
• If concrete comes into contact with your skin, it’s important to immediately wash off with clean water and replace any wet clothing or PPE. Don’t wait!
• Be sure to wear eye protection when working with wet concrete. Your eyes can be seriously injured due to splashing concrete. Wear safety glasses with side shields or safety goggles.
• Wet concrete can conduct electricity. All electric tools should be grounded and used with care.
• When raising or lowering concrete chutes, be aware of pinch points. These can take off a finger or hand if you’re not paying attention.
• Protect your back. Place wet concrete via chute, wheelbarrow or pump, as close to the work area as possible. Concrete should be pushed, not lifted, into place.
• Use waterproof kneepads or a dry board when kneeling to place or finish concrete.

It’s important to understand that you may not experience any acute symptoms right away if wet concrete touches your skin. But if you don’t wash the area as soon as possible with cold, clean water, you could end up with a serious burn. If a burning sensation continues or worsens even after you’ve flushed the area with water, seek medical attention. If wet concrete splashes into your eyes, flush them continuously with clean water for at least 15 minutes and then go to the hospital.

Source: www.ccicomply.net