• First and foremost, what is your budget? What are you plans for your home? Are you going to "scrape" it and then rebuild? Or are you going to remodel and upgrade the interior. Once again, consider your budget as remodeling generally costs more than is estimated, and generally takes longer than planned.
  
  
• Consider your constructions costs. Are you planning on moving out during the remodel period? Ir so, you will need another place to live and there are rental fees that are required. Therefore, you will have not only your initial mortgage, but your second (if refinanced) as well as your rent. All of this needs to be taken into account before embarking on a construction project to ensure that you are not "overextending".
  
  
• How are you going to obtain the funds to remodel? Are you going to take our a second home loan. If you need to contact a professional lender, I can provide you with the name of a lender if you do not have one. Your lender will send out a Real Estate appraiser and provide you with the amount of money that can be borrowed up on the property.
  
  
• Consider your home's value, and your neighborhood's value. If you are unsure of these items, then please contact me or another professional Realtor for  Comparative Market Analysis. Also, you do not want to "overbuild" for your neighborhood.
  
  
• Consult your tax professional about the ramifications of remodeling your home, and if your adding buildable square footage.
  
  
• Consider "resale" when you are building your home. Consider the design, as eventually you may sell your home. If it is too unusual, then you are going to limit the number of prospects that may be interested in your home.
  
  
• Work with your tax professional when you are making this investment to determine the amount of time that will be required for you to stay and live in the home in order to yield the highest gain on your investment. For example, if you do a complete remodel, and then move out right away, you may not realize the financial benefit of remodeling, as the neighborhood has not yet caught up with the improvements.
  
  
• Adding bedrooms, bathrooms, square footage, inside laundry rooms and kitchen remodels are good financial investments.
  
  
• Obtain permits for all aspects of construction. Not only does this protect you with the city (or other agencies), this also does not "handicap" the home. If a remodel was done without permits, this must be disclosed in the selling process - and then it creates questions from potential buyers - was this remodel done properly, and to code? Also, if you do not have permits, then construction can be halted, and fines can be incurred by the property owner. And of course, by obtaining permits, it ensures appropriate safety with the construction of the home.
  
  
•  Prior to beginning the process, check with the city to determine the length of time it takes to get permits approved. Is the city the only governing agency or are there others. For example, in Newport Beach, if you reside along the coast - you must also obtain approval from the Coastal Commission. Take into account the length of time it takes to obtain these permits.

• First of all, you will enter into a contract with that person or company so you may want to review the contract so that you understand all of the fees and scope of service. The scope of service generally includes preliminary design drawings, and working drawings to ultimately get you a building permit issued.
  
  
• Ensure that you have a good and professional working relationship as it is a two way process.
  
  
• Obtain a local building designer. Often times if you hire one that is out of the area, they are unaware of how the city works, who the employees are with the city, etc. The local building designer will be aware of city expectations, requirements, and building codes. You want this process to be as smooth as possible.
  
  
• Obtain a time estimate from your building designer, and inquire about the length of time it takes to obtain final approval from the city.
  
  
• The building designer will submit your plans to an engineer for structural calculations, and then submit them to the city for approval. Often times, the plans will come back for revisions (a typical process) and once those corrections are made, the plans will be resubmitted to the city for approval.
  
  
• If you are working with an interior designer, then you may want to consult with that person as well regarding their input for your home.
  
  
• A local building designer in Newport Beach, California - R.A. Jeheber - 949.723.4393, or email at RAJDesign@earthlink.net.

• Ensure that you have a good working relationship.
  
  
• You may enter in a contractual relationship as well, review the contract and ensure you understand the fees and scope of service. The scope of service generally includes building the dwelling as per the approved working drawings from your building designer.
  
  
• The General Contractor generally has sub-contractors that work for him and will provide the specific trades (i.e. electric, plumbing, drywall, roofer, etc).
  
  
• Check on your project on a daily basis to review the status and ensure that the project is moving in the manner in which you expect it to.

I have the names of several General Contractors in the Newport Beach area. Please email me at Sharon@SharonintheOC.com or call at 949.280.0681.