With national home prices back to mid-2002 levels, how could this be a good time to remodel? With so much uncertainty in the real estate market does it make sense to stay put and upgrade? There are a lot of smart reasons to do a kitchen or bath project now. Here are nine of them.
Lenders are eager to extend lines of credit to homeowners with good credit ratings, with at least 20 percent equity left in his or her home, and proof of income. The Federal Reserve's cuts have driven down home-equity interest rates from 8.25 percent to 6.4 percent in the past six months alone, and analysts expect them to fall even further.
In order to remain in business, the good Kitchen and Bath remodelers must “think out of the box”. This could mean taking on small jobs and becoming more "customer centric".
With the falloff in demand, some construction materials, such as kitchen cabinets, sinks, and plumbing are not only readily available, but many have come down in price. You can also get some items more quickly. Turnaround times that were 14 to 16 weeks are now 8 to 10 weeks.
And, in order to remain competitive and keep their crews employed. Some contractors are willing to negotiate even lower rates.
Times are tougher, and it's the marginal guys who have gone under. The kitchen and bath contractors who are still standing are likely to be those with longevity, who are the most professional, who produce fast and accurate quotes, and who are focused on customer relations.
Given the state of real estate, you're probably not going to be selling for a few years so why not enjoy the improvements you make? After all the expense and stress of a kitchen remodel, wouldn't you like to settle down at that honed-granite breakfast nook for a while?
Just as a home improvement won't drastically increase the sales price of your house, it won't drive up your property taxes, either. "If you put $15,000 or $25,000 into a $200,000 house right now, it's probably still a $200,000 house," says San Antonio tax attorney Stanley Blend, who chairs the American Bar Association's section on taxation. Since property tax assessments are based on what a willing buyer would pay a willing seller in the current marketplace, there's a good chance that your home improvement will have little or no effect on your assessment, at least until the market picks up again.
The cost of purchasing high-efficiency appliances and lighting systems could take 10 years (or more) of lower utility bills to recoup. You'll probably be in the house long enough to earn back more of that outlay. Also, energy efficient appliances will make your house more attractive when the time comes to sell your house.
Making improvements now will best position you to make your move as soon as the market picks up. While everyone else is calling contractors for those get-set-to-sell projects, you won't be. Your house will be ready.
The latest computer technology enables us to assist contractors and do-it-yourselfers in bringing your dream to reality.
Complete solutions from design to installation. Come visit our Total Kitchen & Bath Showroom today.