Step 1: Hire a contractor
Get at least three estimates from different contractors before you select a contractor. Ask for references from each contractor as well. You are hiring them for a job, so treat each meeting as a job interview. Here are some of the questions you should ask:

• How long has the contractor been in business?
• Is the contractor a member of NARI, NAHB or any other professional organizations?
• Is the contractor registered with the Better Business Bureau?
• Does the contractor carry workers' compensation and liability insurance?
• Does the contractor arrange to obtain all necessary permits?
• Does the contractor offer design services?
• How many projects of this type has the contractor completed?
• Who will be supervising the work?
• Will employees or subcontractors be doing the work?
• What percent of the contractor's business is repeat or referral business?
• Does the contractor offer a warranty? If so, what is covered and for how long?

Contact the contractors’ references, and ask these questions:

• Was the job completed on time and on budget?
• Did the contractor communicate well throughout the project?
• How was the quality of workmanship?
• How did the contractor handle any unexpected problems?
• Was the job site kept safe and clean?
• Were the construction workers reliable and trustworthy?
• Have there been any problems since the completion of the work?
• Would you hire the contractor again?

Step 2: Define the scope of the job
Meet with your contractor and inspector and determine the work that needs to be done. Listen to their suggestions on how to complete the work. The contractor will complete a proposal and schedule which will specify the cost and order in which the work is to be done and a time frame for the work to be completed.

 

Step 3: Demolition
Before any construction work begins, decide which items are to be removed, including drop ceilings, paneling, flooring, kitchen and bath fixtures, and anything else that will be replaced.

 

Step 4: Exterior improvements
Replace or repair the roof, windows, siding and/or brick to ensure the inside of the house stays dry during the rest of the renovations.

 

Step 5: Framing and subfloors
Check for rotting wood throughout the house, and replace as needed. You may need to replace existing walls if damaged. This is also a good time to reconfigure your room layout by removing any existing interior walls and building new ones.

 

Step 6: Plumbing, HVAC and electrical upgrades
These systems must be in working order at this stage so that the rest of the interior work, particularly the drywall, can be completed.

 

Step 7: Drywall
Sometimes, only some light patching and repair work is needed to improve the appearance of damaged walls. However, installing new drywall can make an old house look like new, and is well worth the extra time and cost.

 

Step 8: Painting
First be sure to specify the paint color for each room to avoid extra cost and time. Then, apply a light coat of paint or primer on the drywall to make any flaws more apparent. After the flaws are fixed, add two more coats.

 

Step 9: Kitchens and baths
Install new flooring in kitchens and baths before installing cabinets, fixtures and appliances. To save time and effort, you can take the dimensions of your kitchen or bath to a home improvement store and have them design your cabinet layout for you.

 

Step 10: Details
Walk through the house with your contractor and take note of anything that still needs to be done, such as outlets, fixtures, drywall repairs, or painting mistakes. These small details are what can turn an average-looking rehab job into a great one.

 

Step 11: Carpeting
Wait until the very end of the renovation to install carpet or refurbish hardwood floors, or you'll run the risk of having it ruined by the construction crew.

 

Step 12: Final inspection
Take one last walk-through with your contractor and inspector to ensure that all renovations are completed to both you and your lender’s satisfaction.