ANCHOR: THIS YEAR, HOMEOWNERS WILL SPEND NEARLY 200 BILLION IN HOME IMPROVEMENTS.

SOME OF THAT CASH WILL PAY FOR CONSTRUCTION SURPRISES. WGN’S MONEY-SAVING EXPERT ILYCE GLINK IS HERE WITH A FEW SUGGESTIONS ON HOW TO PLAN FOR THE UNEXPECTED.

ILYCE: WHEN IT COMES TO HOME IMPROVEMENTS, HOMEOWNERS FIND THAT WHATEVER YOU DO TYPICALLY COSTS ABOUT TWICE AS MUCH AS YOU’VE PLANNED AND TAKES TWICE AS LONG. WHY? SOMETIMES IT’S DUE TO CONSTRUCTION SURPRISES.

ILYCE: WHAT KIND OF SURPRISES? IMAGING DIGGING DOWN TO LAY A FOUNDATION AND FINDING A MASSIVE UNDERGROUND OIL TANK.

UNLESS YOU KNEW YOU HAD AN UNDERGROUND TANK AND HAD PLANNED TO REMOVE IT, THIS KIND OF CONSTRUCTION SURPRISE CAN EASILY BLOW A $5,000 HOLE IN YOUR BUDGET. WHAT OTHER KIND OF SURPRISES MIGHT POP UP?

SURPRISE!! *

ROTTING FLOORBOARDS *

EXTRA DEMOLITION *

CHANGES TO PLANS *

MOLD OR ASBESTOS

ILYCE: IN A RENOVATION, YOU MIGHT FIND ROTTING FLOORBOARDS OR JOISTS THAT HAVE TO BE REPLACED. SOMETIMES, EXTRA ITEMS HAVE TO BE DEMOLISHED AND REPLACED, LIKE PLASTER WALLS. OR, WHEN YOU START BUILDING, YOU REALIZE THERE IS A MISTAKE IN THE PLANS THAT HAS TO BE FIXED ON SITE. CHANGE ORDERS ARE EXPENSIVE. FINALLY, YOU MIGHT UNEXPECTEDLY FIND MOLD OR ASBESTOS THAT NEEDS TO BE REMOVED BEFORE WORK CAN PROCEED.

BUILDING A HOUSE FROM THE GROUND UP MEANS YOU’LL USUALLY HAVE FEWER SURPRISES DURING THE PROCESS THAN IN A RENOVATION, WHERE AN OLD HOUSE CAN BE A MINEFIELD. WHAT CAN YOU DO TO PROTECT YOURSELF FROM CONSTRUCTION SURPRISES?

PROTECT YOURSELF BY: *

15 TO 20 % EXTRA IN BUDGET *

CAREFULLY REVIEW PLANS *

CHANGE ORDERS IN WRITING *

STICK TO YOUR DECISIONS

ILYCE: THERE’S ALMOST NOTHING YOU CAN DO TO COMPLETELY PROTECT YOURSELF FROM CONSTRUCTION SURPRISES – SO, YOU HAVE TO PREPARE INSTEAD. PUT AN EXTRA 15 TO 20 PERCENT INTO THE BUDGET TO PAY FOR WHATEVER SURPRISES POP UP. CAREFULLY REVIEW THE PLANS AHEAD OF TIME TO CATCH POSSIBLE MISTAKES. PUT ALL YOUR CHANGE ORDERS IN WRITING, SO THE CONTRACTOR KNOWS EXACTLY WHAT YOU WANT. SIGN AND DATE THEM, TOO. FINALLY, STICK TO YOUR DECISIONS. CHANGING YOUR MIND HALF WAY THROUGH CAN GIVE YOU STICKER SHOCK.

MONEY SAVING TIP OF THE WEEK

APPLY FOR A HOME EQUITY LINE OF CREDIT

ILYCE: FOR MY MONEY-SAVING TIP OF THE WEEK, APPLY FOR A HOME EQUITY LINE OF CREDIT.

HOME EQUITY LINE OF CREDIT *

LOW INTEREST RATE *

FIXED OR VARIABLE *

NO CLOSING COSTS *

PAY ONLY FOR WHAT YOU USE

ILYCE: THE BENEFITS OF USING A HOME EQUITY LINE OF CREDIT TO PAY FOR YOUR HOME IMPROVEMENTS ARE THAT THE LOAN CARRIES A LOW RATE OF INTEREST, WHICH CAN BE FIXED OR VARIABLE. THERE ARE TYPICALLY NO CLOSING COSTS, AND NO APPLICATION COSTS. AND, YOU PAY ONLY FOR THE CASH YOU BORROW.

THE OTHER BENEFIT IS IF YOU LOSE YOUR JOB, HAVING AN OPEN LINE OF CREDIT ALLOWS YOU A LITTLE FLEXIBILITY WHEN IT COMES TO PAYING YOUR BILLS – UNTIL YOU GET YOUR JOB. TUNE IN NEXT WEEK FOR ANOTHER MONEY-SAVING TIP, OR LOG ONTO WGNTV.COM AND LINK TO GLINK.

Published: Sep 9, 2003