SUNNYVALE, CA -- The fall 2008 www.remodelormove.com Remodeling Sentiment Report, a semi-annual survey of 5,000 U.S. homeowners, reveals how the amount of equity homeowners have in their property affects their remodeling plans.
Homeowners participating in this most recent survey reported an average of more than $190,000 of home equity and average home values of $390,000, up from $140,000 and $342,000 respectively in the previous survey. The increase in home value and equity from respondents indicates that homeowners who have less home equity or who are living in lower-value homes have put their remodeling projects on hold, while homeowners with more financial resources are moving ahead.
This finding is in line with the www.remodelormove.com U.S. Remodeling Permit Activity Report, which shows an increase in the average cost of a remodel in markets with the most expensive homes and a decrease in regions with average and below average cost homes. The sampling of U.S. remodeling permits shows a decrease in planned remodeling spending of almost 15 percent in the first half of 2008 versus the first half of 2007.
Homeowners who choose to remodel their homes may find this is a good time; with new home construction at low levels, more materials and labor are available for remodeling than several ago, resulting in shorter project schedules and often lower project costs.
Key findings from the fall 2008 survey include:
--84 percent report that the possibility of a recession is affecting their remodeling plans.
--81 percent plan to start their home remodel this year.
Regarding cost saving efforts, homeowners report they are planning:
--Not to hire a general contractor -- 34 percent
--To use economy materials -- 10 percent
--To do some of the work themselves -- 65 percent
Other findings from the fall 2008 Remodelormove.com Remodeling Sentiment Report
Homeowners are:
--Excited about remodeling -- 48 percent
--Dreading remodeling -- 11 percent
Homeowners' plans include:
--Kitchen remodel -- 55 percent
--Bathroom addition -- 49 percent
--Bathroom remodel -- 49 percent
--Addition of one or more bedrooms or den -- 39 percent
--Enlarge or add a garage -- 19 percent
--Finish a basement -- 13 percent
Although this may feel like a risky time to remodel, that may not be the case. By carefully preparing and following "A SMART Remodel" strategy, homeowners can minimize the risk and maximize the results.
www.remodelormove.com's SMART remodel approach allows homeowners to embark on a remodeling project and achieve results that are not only less expensive, but are of much higher quality than many people typically find at the conclusion of a renovation project. A SMART approach to remodel encompasses six basic steps:
A complete plan. Homeowners should analyze fully their current situation, as well as their future plans, before enlisting the services of a contractor.
Safety first. This is a critically important component of A SMART approach, as it reinforces the necessity of being insured and protecting personal property during the course of a remodel.
Move instead of remodel? This is a question that all homeowners should consider before launching a remodeling project. The pros and cons of both remodeling and moving should be considered carefully.
A contractor interview plan. This involves preparing very specific questions that should be posed to each potential contractor.
Right sized. This means that homeowners should ensure that their plans are appropriate for their home as well as their neighborhood.
Total cost. The finances need to be analyzed carefully, as the final costs will involve more than the money paid to a contractor.
A SMART remodel approach allows homeowners to begin remodeling projects with a distinct advantage that will not only save money, but also will reduce the amount of stress experienced during the remodel. For more information, visit www.remodelormove.com.
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