If you want to get the best possible work done for the best possible price, there are some specific steps you need to take:

1. Find someone with a good reputation in your community who does the sort of work that you need to have done. The contractor should ideally be someone who makes her living doing this work, and who does the work year-round. They should be licensed by the state and have all of the necessary insurance coverage.
2. Consider asking for community references, such as from your local BBB or Chamber of Commerce.
3. Check with your state’s licensing department to see if the builder is licensed as a contractor. Make sure they’re not on the state debarment list, which you may have to request from your state via telephone or by visiting a state office.
4. Ask for references from former customers. A good contractor will be able to provide you with the names and contact information of several satisfied customers.
5. Shop around. Don’t just hire the first contractor that gives you an estimate. Make sure you find one that not only meets your budgetary requirements, but that also really understands the vision you have for your home improvements.
6. Pay careful attention to the contract. Understand how payment disbursement will work, and what the terms of the work will be. Know what kind of warranty is stated in the contract, and know what kind of warranty is implied and customary in your state.
7. Maintain good records. As your contractor does the work, make sure you keep good records of activities and transactions. If there is a dispute down the road, you want to have all of the necessary records to prove your point.

Photo via The Consumerist

However, there’s another source of funding that you might think about using. If you’re having trouble getting a home loan to make your improvements, you might look at your retirement account as a source of funding.

Now, we’re not talking about cashing in your 401(k), of course. After all, if you’re like most folks your retirement accounts have probably taken a hit over the past couple of years during the financial crisis and recession. In addition, you’ll get hit pretty hard on the taxes on that money you get during next year’s income tax filing. You also reduce your overall retirement savings, which is just generally a bad idea.

Instead, you may have the option of borrowing against that retirement account. Borrowing against a 401(k) is a pretty common thing, and most retirement accounts allow you to borrow against it.

When you borrow money against your retirement account, you don’t have to worry about a credit check. In fact, that’s one of the reasons folks generally turn to this kind of borrowing. You may have less-than-stellar credit, and this is a way for you to get cash to make improvements without having to deal with higher interest rates or with explaining to a bank why your credit score isn’t as high as they might like it to be.

Before you take out this kind of a loan, be sure to talk to the company that holds your 401(k). Find out how much you can borrow, and how much you’ll need to pay back each month. In most cases, the payment on this loan can be drawn directly from your paycheck, in the same way that your 401(k) investments are automatically drawn from your paycheck.

Finally, it’s worth mentioning that borrowing on your retirement account isn’t a measure of last resort, but it shouldn’t be your first choice, either. Find out all of your borrowing options before you make that final decision.

Photo via rezlab

The good news is that there may be some way to increase your home’s value, even in this economy. Home improvements that increase your home’s value are almost always a good idea, but some home improvements are more likely to pay off than others. The trick is being able to figure out which improvements help your home’s value the most.

The Basics

There are some home improvements that just can’t be overlooked if you’re going to sell your house anytime soon. You need to deal with structural issues. You need to consider work roof, if it needs it. You need to make sure that everything mechanical, from the air conditioner to the garbage disposal, is working the way it’s supposed to.

Kitchen Improvements

One of the quickest ways to increase your home’s value is by improving the kitchen. The kitchen is the heart of a house, for many buyers. Paint it, wallpaper it, and refloor it. Stain your cabinets, and replace old cabinet hardware that looks like crap. Just make sure you use high-quality materials and go for perennial design themes rather than the latest trend. A kitchen update will recoup around 80 percent of its cost, and you get a better kitchen in the meantime.

Add Functional Space

Converting a basement or attic space into usable living space will have a similar payout. It’s also a hell of a lot cheaper than adding on to the home. Whether it’s adding a family room to the basement or putting a bedroom in the attic, you’re going to recover most of your cost when the home sells.

Replacing Windows

If you’ve got older windows, chances are you can save some money right now by replacing them. Not only does replacing windows recover about 81 percent of the cost of replacement, you’re also going to recoup some of that cost right away in the way of energy bills.

Outdoor Improvements

Things like pools, decks and gardens will all help to draw potential buyers in. They don’t always directly increase your sale price, but they do make it more likely that your home will sell. In this economy, that’s a huge asset.

Photo via Brock Builders