WEAK RESALE MARKET
With a glut of existing homes for sale, the likelihood of getting the optimum price for a house is not great. Many cities have experienced lowering in the market value of houses. It’s taking three-four times longer to sell houses as compared to a couple of years ago. As a result, it may still be quite a while before relocation makes good economic sense as a means of improving one’s lifestyle.
LOWEST LABOR COSTS IN YEARS
Since new house starts are way off, additional labor sources are available for remodeling in all trades. Indeed, the extra labor supply has temporarily reduced remodeling labor in general.
WIDER SELECTION & LOWER PRICES OF NEW PRODUCTS
A flood of attractive new products has been introduced, particularly in the kitchen and bath markets. As a result, many of these new products have been positioned with lower starting prices to gain market share. This kind of bonanza has not happened in recent memory.
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INCREASED FLEXIBILITY IN PACKAGING THE PROJECT
Should there be a large amount of general carpentry and mechanical work involved in your project, the extra supply of available labor will enable companies more latitude in “unbundling” the project to reduce costs. Here is one creative example. While this approach is not suitable for all clients or circumstances, one company could design the kitchen project with you and generally furnish and install the cabinetry and counters. Additionally, they could write the specifications for the other work involved. Under this approach, you assume the risks and responsibilities of coordinating the trades in return for a lower overall cost. You should ask renovation firms for further advice, details, and variations on this approach.
SAVE BIG BUCKS ON REFINANCING
Interest rates are at their lowest levels in years. You now have a unique opportunity to reduce debt over the life of your existing mortgage by reducing its terms. At the same time, you can increase the value of your home by doing the renovation projects you always wanted. Additionally, it’s possible you can reduce your monthly house payments. It doesn’t get much better than this.
80%-125% RETURN ON YOUR KITCHEN AND BATH REMODELING
With these kind of “probable returns on the money you spend,” the highly respected Money magazine ranked kitchens and baths as “the most cost-effective renovations” to undertake, Write the editors of Money, “a modern kitchen is both a workplace and family room.” While impartial home appraisers advise spending no more than 15% of current house value for a new kitchen, Money suggest you “try to confine your spending to about 10%”. Should you wish to resell in the near future. Of course, these percentages are only guidelines and need to be adjusted according to local real estate values.
UPDATED KITCHENS & BATHS HELP SELL HOUSES
Realtors have known this fact for years. That’s one reason why a remodeled kitchen or bath is frequently cited as a home’s major feature in a real estate ad. So, if you choose to remodel a kitchen or bath in the coming months, and then decide to relocate in two-three years when the resale market has fully recovered, the chances of your house selling quickly at an optimum price are excellent. Plus, you are assured of recovering your entire investment within this time period, if not actually making some additional money off it!
IMMEDIATE IMPROVEMENT IN YOUR QUALITY OF LIFE
Despite all the strong economic logic for remodeling now, none is more important than knowing the whole family gets to enjoy an improved quality of life right away in a home and neighborhood where they feel comfortable. Such emotional satisfaction can never be measured in dollars and cents, only in the wonderful memories of holiday gatherings and spirited parties with friends in your new kitchen.
In the final analysis, where else can a person earn an 80-125% return on an investment the entire family can use and enjoy every day while reducing your debt substantially? There are not many answers to that question. That’s why a remodeled kitchen or bath makes so much practical and economic sense right now.
