While everyone is debating the state of the economy and speculating about when the real estate market will rebound, there’s one point most everyone can agree on.
The trend toward delaying moves and staying put has been a boon for remodelers as more homeowners decide to upgrade rather than relocate. This is particularly true in Jacksonville, where much new development is taking place outside the urban core and where there is a huge stock of older homes, ranging from ranch-style production homes built in the ‘70s to one-of-a-kind historic homes built in the ‘20s. That’s one reason membership in the Remodelers Council of the Northeast Florida Builders Association has soared from 33 to 109 in the past year, making it the fastest-growing council in the country. “By 2015, remodeling is expected to outpace new construction,” says Larry Murr, owner of Lawrence Murr Remodeling and 2008 council chairman. National stats back him up. The National Association of Home Builders’ (NAHB) 2007 Remodeling Market Index registered 46.2, up from 44.8 the previous quarter. Any reading over 50 indicates that the majority of remodelers view market conditions as improving, so 46.2 isn’t exactly a resounding reading—but at least it’s trending upward. In addition, the Harvard University Joint Center for Housing Studies found that homeowners spent $174 billion on remodeling in 2007, up from $84 billion in 1995, the first year the center began tracking statistics. The number should hit $450 billion in the next six years, according to the study. “The remodeling market is not experiencing the dip in production and sales being seen by the new-home sector,” says NAHB Remodelers Chairman Mike Nagel of Chicago. While no one likes seeing a dip in any sector, Greaves says the slowdown in new construction does present a silver lining for homeowners choosing to remodel. “Materials show up quicker,” Nagel notes. “Subcontractors are there immediately. Job times are faster overall. That saves the homeowner money because remodeling is highly supervised and the less time I have to supervise, the less it will cost.” And the future of remodeling looks bright, with growth projected even when the new-home market recovers. Remodeling, which currently accounts for 40 percent of residential construction, is expected to overtake new-home construction by dollar volume within the decade. Helping propel the remodeling market is the trend toward downtown living and the allure of older, established neighborhoods. People who already own property in desirable, close-in locales are using equity to finance improvements while people moving in are upgrading aging homes with new-home comforts. These established neighborhoods—San Marco, Riverside/Avondale, St. Nicholas and many others—offer fertile territory for qualified remodelers. “There’s a desire to be near the downtown areas, and one way to do that is to invest in historic and infill areas,” says Frank Rodgers, president of Finial Builders. Rodgers adds that, unlike the days when people were buying older homes and “flipping” them for a quick profit, homeowners who remodel are now planning to stay put. But should they decide to sell, they’ll likely recoup much of their investment. According to Remodeling Magazine, kitchen and bath remodels bring the highest returns. After one year, a minor kitchen remodel will return 82.7 percent on average while a bathroom redo will return 78.8 percent. Improving the home’s exterior is a good investment, too. New siding—one of the least costly projects listed in the 2007 Cost. vs. Value Report—averaged an 85.1 percent return. But a word to the wise when altering the exterior: make sure it blends with the character of the neighborhood. Frank Shirley echoes this sentiment in his book New Rooms for Old Houses. He writes: “For an addition to an old house to work, it must be in harmony with the original structure. Achieving harmony is not simply a matter of replicating what is already there, but of understanding the design principles of the original home and using them in your addition.” In other words, a remodel or addition is only as good as the firm responsible for the project—and choosing the right remodeler requires a bit of research. The National Association of the Remodeling Industry (NARI) has plenty of advice on the subject and a downloadable brochure filled with valuable information. The organization’s Web site has even more, including a list of questions you should ask a potential contractor. But do you always need a contractor? In fact, many smaller projects can be tackled by a skilled do-it-yourselfer. But even small jobs could end up costing you more, not less, if you run into trouble—and chances are you will. Remodeling is rarely without unexpected—and expensive—complications. These surprises have prompted many a DIYer to make a rescue call. Thus most remodelers have become skilled problem-solvers. For example, moving plumbing, upgrading electrical service and relocating walls require a professional, and usually a permit. Just make sure that you choose a professional who is experienced in residential remodeling and the special challenges it represents. And someone with whom you are personally compatible. To stand out in a growing crowd, many remodelers are earning professional designations that differentiate them as highly trained in a specific area. For example, in response to the demand for remodelers who are trained to deal with needs of older homeowners, NAHB created a designation called Certified Aging-in-Place Specialist (CAPS). Aging-in-place home-design techniques enable people to stay in their homes longer by making certain that accessibility is emphasized from the outset. Last year 16 local contractors attended CAPS courses and earned the designation. Similarly, interest in green remodeling is on the rise. In a 2006 survey of builders by Green Builder Media and IMRE Communications, it was found that 41 percent of buyers ask about environmental friendliness and energy efficiency. And when it’s time for a remodel, many are going green. According to the Sustainable Building Industry Council (SBIC), homeowners who choose to remodel green can lower their energy consumption by 30-50 percent. A NARI Green Certified Professional (GCP) will know how to seamlessly incorporate cost-saving and earth-sustaining concepts into projects. Some owners are looking for economical ways to increase the value and livability of their home. For others, cost is not a factor in creating the home of their dreams. Along that broad continuum, there’s a remodeling solution for almost any challenge. All it takes is a plan, some patience, and a remodeling pro who can make it happen. Certification 101: Remodelers Sharpen Their Skills Doing Your Homework Cost vs. Return MAJOR KITCHEN REMODEL MINOR KITCHEN REMODEL FAMILY ROOM ADDITION BATHROOM ADDITION BATHROOM REMODEL MASTER SUITE ADDITION TWO-STORY ADDITION HOME OFFICE REMODEL DECK ADDITION - WOOD Source: Cost vs. Value Report 2007 |
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