Golden Opportunity
Now’s the Time to Tackle Renovation Projects
By Daniel J. Weidmann, CR, CAPS
Photography courtesy of Jan Stittleberg
As uncertainty about the economy lingers, some consumers are opting to remain in their current homes. That’s causing them to take a long look at dated kitchens, blah bathrooms and bare basements and wonder if now is a good time for a change.
I can tell you that this is an excellent time to consider a renovation. The primary concern of most homeowners is: will the project they tackle provide them with a sufficient return on investment (ROI)? You have to look at the two facets of ROI. The first is simply the greater use and enjoyment you will get from the space. A project that’s well designed to meet your family’s needs will address this issue. Second are the financial aspects. Historically, the two projects that have the greatest ROI are kitchens and master baths. These are the two critical areas where we spend the most time and the two places buyers look at first. One caveat is that these projects must be finished to a level that’s consistent with the value of your home. If improvements are not up to the level a future buyer would expect (think laminate countertops in a million dollar house), it may actually decrease your home’s value. Conversely, if you do too much, you won’t recoup your investment. As a guide, visit comparable homes to see what they’ve done.
Other common projects like outdoor living areas and finishing basements do not have as high a return on the financial side, because they aren’t essential areas, but they can help a home sell faster because they create appeal.
Speaking of selling, clients often ask what projects make sense to undertake in the current market to help sell their home. On this question, I recommend consulting a qualified Realtor. Homeowners often find that a Realtor will recommend doing far less than they thought was necessary. For example, rather than a complete kitchen makeover, he or she may recommend a kitchen update with new countertops and fixtures, or cosmetic changes such as repainting.
If you plan on selling your home when the market improves, does it make sense to remodel? I generally tell people that if you plan on living there for at least two years, make the changes you need to improve your quality of life. However, do so with an eye toward selling the home, so that your home will appeal to the greatest number of potential buyers. Don’t make things too personal.
Now is also a great time to tackle a project for a practical reason. When you are living through a renovation project – as most homeowners do – how long it is going to take is a very common concern. After years of contractors carrying extensive backlogs, many now have shorter lead times to the start of construction. While the market for minor repair projects is booming, major renovations are not yet back in full swing, giving contractors more time to devote to your project. In an extensive renovation, subcontractors also play vital roles, and a slower market makes them more available. That also applies to suppliers who have been catering to new homes, but are now very attentive to remodeling. While some material discounts are available, the major savings opportunity is time, since remodeling clients now have more resources available to them.
No matter when you begin a remodeling project, who you choose to complete it is a critical factor in the ultimate success of the job. The flipside of a downturn in the economy is that some companies are expanding into areas they don’t normally handle in order to keep fully staffed. For your project, make sure you use a competent firm with a record of renovation experience. New construction and remodeling are completely different. Remodeling is first and foremost a service business, because the homeowner is typically living in the home while work is going on. There’s a different sets of complexities involved in marrying the new with the old, and experienced remodelers know what to look for.
To ensure that your contractor is qualified, do your due diligence. Establish that the company you are talking to is familiar with and has handled your type of project before. Make sure you check references and look at examples of their work.
One excellent source for finding professional remodelers is the National Association of the Remodeling Industry. NARI is an association dedicated solely to remodeling. To become a member of NARI, companies go through an application process in which NARI verifies that they meet certain criteria and the firm agrees to adhere to NARI’s code of ethics. If an issue were to arise, homeowners can contact NARI, and we can step in to assist in resolving it.
Daniel J. Weidmann, CR, CAPS, is President of NARI Atlanta and President of award-winning remodeling firm Weidmann & Associates, Inc. in Roswell. For more information, call Weidmann & Associates at (770) 552-8396 or visit www.weidmannremodeling.com or www.nariatlanta.org.
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