How Much Can I Save on Remodeling My Home? (And Giveaway!)

This month we're talking about the book Be Your Own House Contractor. And this week, we're looking at some pieces from the book's companion website at http://www.byoh.com/. Today, we'll discuss how much you can save on remodeling your home:

Q: How much can I save on remodeling and additions?

A: The National Association of Home Builders recommends that General Contractors (GCs) build in a gross profit of 50% of contract price, or put another way, 100% of the cost of labor and materials. The reasons GCs should charge more are: there is usually more work involved in remodeling and additions, there are hidden costs that don't show up until you are into the project, and most importantly, it takes as long or longer to do these small jobs when more actual dollars could be being made on a new house. Therefore, it stands to reason that you, acting as your own GC, can save 50%.

I covered this question because several of the comments in this series so far have noted that people are thinking of remodeling their homes. So I thought you'd like to know what kind of savings you could be looking at. ;-)

Want to know more? You can win a free copy of Be Your Own House Contractor. Here's how it works:

1. Leave a comment below -- any comment.

2. Sometime tomorrow, I'll stop by the post, stop the submissions, and name the winner.

3. It will be that person's responsibility to check back to see if they are a winner and then email me their contact information.

4. I'll send all the winners their books in one mass mailing going out the second week in September.

A few rules for these giveaways:

1. You can not win more than one prize.

2. I will be the complete and final judge.

3. Legal disclaimer: I can not guarantee safe delivery of the items. I'll send them via US Mail, so it's likely they'll be fine, but I can't control it and won't be held accountable if the mail system messes up.

4. If you win something and do not contact me within a week of winning, I reserve the right to give your prize away to another winner. Note again: I won't track down the winners -- it's your responsibility to come back and see if you won.

Good luck! Post a comment below for a chance to win this book!

Comments

[Scott Kustes]

My kitchen could use a remodeling. I could use this book.

[Richard M.]

Please enter me in the drawing again.

Thank you.

[Chuck Vitello]

Am thinking about buying a great home that needs a great deal of remodeling. Would love to have a copy of your book.
Thanks

[Armel]

Seeking my luck once again...

[esther]

trying again....

[Meliruppu]

Trying again for the book!

Meliruppu

[Meliruppu]

Trying again

[Harley]

one more time.....

[Richard]

Trying again

[Dave Jones]

This is a HUGE issue in our house! Our wish list of remodeling/improvement projects NEVER ends. We are walking the slippery tightrope of trying to be debt-free while simultaneously improving our home.

We would love to design and build our home someday. Sue has even scribbled some floor plans. However, that will happen after our ship has come in.

In the meantime, we need to be good stewards of the property we own. This will also serve to prepare us to take better care of WHATEVER property we own in the future.

[Internyet]

Books like this make me glad I learned to read.

[Cam]

Throw my hat in again please.

[Familyfinanceguy]

Trying again!

[brent]

my question is: does the book talk about the cost of screwing it up?

there's two possible reasons why concrete layers have a profession at all - it can't be that hard can it?

1 - it's not hard. the rest of us are lazy. we should just buck up, take the weekend off and pour our own damn concrete.

2 - it's that hard. if you make a mistake with the mix, the foundations, the humidity of the area, the surface finish, the volume of concrete, the time available, the fact that you walked on it when it was only 3/4 dry... you've just blown all that money.

[Brian]

I don't need to remodel, but I NEED THIS BOOK!!!

[Cory]

I'm feeling lucky.

[Mike H]

I've got all sorts of projects on my mind for our current house. This could come in handy.

[Ricky B]

Yingeme Boppa Jingdangmo Soppa

[Nathan]

Enter me please.

[Adam]

i guess i'll try again, 3rd time is a charm ;)

[Fred]

One more time...

[Thad]

I'll try to win (again).

[Seth H]

Trying again!

[Eric G.]

geez i never win

[Daniel]

Continuing my vain attempt at winning. :) Thanks again for the chance... lol

[Richard Sullivan]

Sign me up again

Richard Sullivan

[Scott]

Sign me up.

[RuthieRose]

I am thinking of remodelling my room.....this book should give me some tips. Here I am again

[Matt G.]

One more try!

[guniadi]

My lucky day.

[Brad]

And again

[Reto]

This book would come handy...

[JMS]

Trying again...

[juanny]

peeps

[Glen]

First a comment to Dave Jones -- set a budget and prioritize. You will never ever, ever get to all the "want-to's" until you win a big lottery. There is always something more glamorous, trendy, etc... And that makes it way too easy to blow your budget. Basic personal finance dictates that you should get debt-free before sinking more money into a non-liquid investment like a house.

Not that the wife and I are currently facing the same problem with the never ending project list. :-) But you can guess how we're tackling it.

A note to Brent: Pouring and finishing concrete *can* be done by a DIY'er. And not even an advanced DIY'er at that. Basic stuff like patios, walks, and driveway extensions are all do-able. Know your skills, your limits, and what you can stretch into. Better yet, learn to listen when the pro's tell you how to do it. And yes, I've poured successfully many times. Success being crack-free, stable concrete that matches the surroundings. I've also redone the electrical, plumbing, and some framing on my house. All to code or better, and often better than a run-of-the-mill contractor. It costs you more time than a pro, but apparently time is what we've got more of.

Good to see that the book covers remodels as well, I had mistakenly assumed it was solely about new construction. There are always risks involved in the construction / remodeling biz. However, you can do it and it looks like this book has quite a few gems to it.

[Dee Whit]

Trying again to win an interesting book!

[lily]

i want this book!!!

[Jack B]

Good Site. Keep up the good work!

[Cherly]

Another day another entry

Thanks!!!

[Cindy M]

Hope!

[Scott Moonen]

Entering drawing...

[JH]

.

[Kory N]

I think remodeling is still a lot of work. It may not be worth doing many of the projects your self. Plus what if I mess somthing up?

[Mathew Johnson]

I like to build a house in the near future. Please send me the this book.
This website is very interesting and informative, especially on Sundays I read about Tithing.

Thanks

[Chad D]

I'll try from the bottom of the list this time! ;)

[FMF]

This giveaway is now closed. The winner is Brian who posted at 10:21 am yesterday. Congrats!

Brian, please email me (see: http://www.freemoneyfinance.com/2005/04/free_money_fina_4.html ) and we'll arrange to get you your book.

To the rest of you, stay tuned. I still have plenty of copies to give away!

[Mira]

I'd love to learn about this, so that when I'm ready I can act with sound judgement.

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