You've listened to all the horror stories about buying a “handyman special,” but have decided to forge ahead anyway.

Unfortunately, you will have to do some of the work as soon as you move in. How do you prepare when two major life events - buying a home and remodeling it - are about to occur simultaneously?

The ideal situation is to start the work before you move in. That is not always possible, however. Perhaps the wiring or plumbing is in desperate need of upgrading or there is a hole in the roof.

As you approach this situation, remember that you will be coordinating several complicated processes at once. You will be:

• planning the house purchase
• reviewing the sales contract
• getting bids from movers
• hiring someone to review the legal aspects of the closings

And:

• interviewing contractors
• reviewing bids for renovating the new house
• visiting home improvement supply stores to look at kitchen cabinets, tile and faucets
• determining your financing options for the renovation

Get Organized!

The process can be overwhelming, both emotionally and financially. The best way to prepare is by getting organized. Begin by making separate lists of what has to be done to complete the moving and remodeling.

On the remodeling list, begin by interviewing contractors and checking their references This process can take several weeks, if not months, depending upon the scope of the work. Then, you will have to wait until the contractor can schedule the work. Perhaps the seller will allow you to delay the closing for a few weeks until the contractor can begin work.

As you schedule the work, talk to your contractor about how to prioritize. If there are major structural or safety issues to address, do them as soon as possible.

In some cases, you may be forced to do more work than you expected because it will reduce the cost in the long term. If you are opening walls to replace wiring, for example, you also may want to add insulation or replace the plumbing. Talk with the contractor about whether expanding the project is advisable, given your timeframe and budget.

Budgeting

As you review your budget, make separate lists for remodeling and moving expenses. List the main expenses along with any indirect expenses. If you will be without a working kitchen for a few weeks, for example, add in the cost of eating out.

Then look at your moving expenses and decide how much will be left to spend on remodeling. Once you have established a figure, set aside 10 to 20 percent more to cover any surprises the contractor finds along the way.

Before the work begins, ask the contractor to explain the various stages of your project. How much noise, dust and disruption is involved in each stage? How many rooms will be under construction at once?

Pack Wisely

As you are packing, fill some boxes with what you will need in the first few weeks of the project. In the kitchen, for example, plastic cups and utensils and paper plates will provide for easy cleaning. The microwave oven also should be within easy reach.

As you will be adjusting to a new house and the roar of construction noise, ask the contractor to set aside one room or area of the house as a “Construction Free” zone. This can be a clean place where you store your valuables and create a haven from the dust and chaos.

Also consider where you can escape to in the neighborhood. A nearby library or sandwich shop with a clean, functioning bathroom might be a welcome respite after a few days.

If you are renovating the second floor of a house and plan to live on the first floor while it is being completed, discuss how this will impact your lifestyle. Will you have access to the second floor during the work? Will workers have to walk through the entire house to get to the areas being renovated? Will you have to store furniture that normally would be placed in those bedrooms? Factor those costs into your budget.

Remember, you are embarking on two major life changes at once. If the construction takes weeks longer than anticipated, are you prepared to live in the house for the duration?