Time is right for a home renovation project

Now is a great time for a home renovation project. Business is so slow that contractors who couldn't return calls previously are now begging for work. The whole process is more affordable. However, The Wall Street Journal reports that the payback during resale is not amazing. For example, you can expect to get back about 75 cents on the dollar if you're doing a big kitchen remodel. So try a minor upgrade instead that can freshen up your home and doesn't cost a fortune. But make sure you're doing it for the right reason -- because you and your family will enjoy the results. Don't go chasing a financial reward that's not going to be there.

Of course, having contractors in your home is not enjoyable. Clark's rule of thumb is expect it to run 30 percent over-budget and for it to take 50 percent longer than planned. One word on expense: The more specific you are about what you want to accomplish -- as to the materials, the scope of work -- the more likely you'll be happy. Hiring a contractor is like getting hitched. It's much easier to get into it than it is to get out. And the honeymoon period ends very soon once they're on board. So do thorough reference checks. Ask the contractor's former clients, "Were they on schedule? How much did they go over-budget?" Go see the homes of former customers if possible. If deadlines are important to you, write it into the contract. But in order for that clause to have teeth, you need to stipulate monetary penalties if work runs over-schedule.