YOUR OLD HOUSE.

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Author: Stern, Linda

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Now that winter is over, it's time to fix up your home. But how do you find a contractor who won't rip you off? Here's a hint: he's probably not available now. Home improvement is as hot as real estate was two years ago, and the best contractors are booked and worth waiting for. The worst show up at your door with contracts, ready to work immediately, claiming to have extra materials from a neighbor's job. "This is a common ploy of fly-by-night contractors who are based out of state and use their pickup trucks as their place of business," said Steve Cole of the Council of Better Business Bureaus. Here's how to make sure your guy is good: Get referrals and check them. Look for someone who has done jobs similar in scope to the one you have in mind. Sign a contract that includes his verbal promises and a payment schedule that allows you to pay as portions of the work are completed. Pay by credit card or check. Don't jump at the contractor's financing package. While you're waiting for your job to start, shop for a good low-fee, low-rate home-equity line. And start saving aggressively: with the average cost of additions running $200 a square foot or more, you'll need lots of cash.

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By Linda Stern