Is Now A Good Time To Remodel?
The number one question I am asked lately is “How’s business?” To which I reply “Better.” And it’s true. I’m really beginning to believe that the worst is behind us and we are ready to make a slow steady climb back to better times. For this and other reasons, I think it’s a great time to hire a professional remodeling company. I have several reasons . .. .
Interest Rates Are Still Low
Let’s face it, most people need some financial help to pull off the project of their dreams. Most of my clients turn to banks for home equity lines of credit. Others refinance their existing mortgage and some borrow from credit cards or other unsecured forms of credit. No matter where you turn though credit is cheap. Remember, cheap is a relative term. Back in 1980 my dad would have killed for the rates we have today. And I’ve heard some say that with the flow of money rushing into the economy from the various stimulus efforts we may be headed back to those rates in the next couple of years. Take advantage now. When rates hit 0% the only way to go is up!
Material Costs Are Lower
Many products are priced on good old supply and demand. The more people that want them the higher the price and vice-versa. There can be an extreme swing in prices due to these market demands (i.e. gas). However, remodeling projects are not necessarily priced that way. A room addition doesn’t cost $100,000 today and $175,000 next week just because I got too busy.
The variable most remodelers use to absorb market demands is time. If we get busy you just have to wait. The price doesn’t double. Remodeling is a cost-based business. Our prices are based on what we pay to build your project plus a percentage for our overhead and profit. However, many of the products we purchase to build your project are subject to the laws of supply and demand (lumber, steel, copper, drywall etc). And right now demand is low!
Lumber prices are almost half what they where two years ago and copper has dropped dramatically over the last year. All these items are needed in a remodeling project and all these savings add up!
Great Remodeling Companies Are Able to Give You Great Attention
Because things are still slower, most companies have a much lower backlog and fewer clients. This is great news for someone that is a client! If a remodeling company typically serves 60 clients per year but now only serves 40 then those forty are getting more attention and better service. Who doesn’t like attention?
Most companies that I know are ready to start projects much faster than they have in the past. And complete them faster. Again, all good things for you, the homeowner.
Demand Is Coming Back
As I stated at the beginning of this article – things are getting better. A huge part of that is the pent up demand that is out there from people just like yourself that have put off their project to see “What will happen.” But during this time nothing has happened. The economy didn’t get better, their personal situation didn’t get worse and the kitchen didn’t get better either. People are starting to realize that the world is not going to end and if they want that new kitchen there really is no better time. That’s why we are starting to see a surge in interest.
And when all this demand breaks free? We get busy – prices rise – interest rates rise.
Time is the enemy. As time moves forward remodeling only gets more expensive. So if you’re on the fence – get off it! Now is a great time to start a remodeling project. But as always – use a professional.
Happy renovations.
