Why You Should Remodel Now

• By Larry Parrish- President, CR, CGR, CAPS, GACP

• Pro•cras•ti•nate: to put off intentionally the doing of something that should be done (definition by Merriam-Webster Dictionary).
  

  Parrish's 2008 Contractor of the Year winner for remodel

• This definition speaks to me on a personal basis. I’m a procrastinator from way back. In fact, I’m planning to join Procrastinators Anonymous one of these days. Really—I’m sure I’ll get around to it. (Their twelve step program takes 450 years to complete.)

• Have you been thinking of remodeling your home since the Eisenhower administration, but can’t seem to get the deed done? I’m sure you have a long list of great excuses—after all, you’ve had decades of practice. I’ve heard a lot of excuses, and I’ll bet I’ve heard yours. I’ve listed some common ones below. Let’s see if you recognize any of these:

• Excuse: “I’m not sure how long we’re going to stay in this house.”
  Reply: I’m not sure either, but I’ll bet it will be longer than you think. I used this excuse with my last three houses. I wound up living in each one more than seven years before remodeling, and always regretted not doing the work right away. I inevitably remodeled my home just before we sold, in time for the new owners to enjoy it. You might as well commence your remodel now, and enjoy it yourself. The most common comment I hear from clients after they remodel is “I wish we’d done this a long time ago.”

• Excuse: “I can’t decide whether to remodel or move.”
  Reply: What will it take to help you decide? Would it help to arm yourself with a few facts? First, collect some information on what it would cost to remodel your existing home to meet your needs. Then investigate it would cost to buy an existing house of the same specifications. This will give you an idea of the relative cost of remodeling versus moving. Next, make two separate pro and con lists. First, for the “remodel option” ledger, list the advantages of remodeling your present home on one side of the page, and the disadvantages on the other. Do the same for the “moving option”. Remember to factor in hard costs such as realtor fees, closing costs, packing and moving, etc. Also weigh the intangibles such as convenience, neighbors, sentiment, and landscaping, as well as dust, disruption, and time. Sometimes, the appropriate answer will almost jump off the page. I’ve noticed that all the Realtors I know have opted to remodel their own homes.

• Excuse: “I’ve heard too many horror stories about remodeling.”
  Reply: I’ve heard a few myself. But I’ve also heard them about buying homes and moving. Most things worth doing involve risk. The key is to manage the risk, and increase your odds. When the stakes are high, it makes sense to take time to do a thorough process of due diligence. Ask for referrals from your associates, check references, and do whatever it takes to get comfortable with your selection.

• Excuse: “If I wait just a little longer, avocado colored appliances and bright orange Formica will be back in style, and I won’t have to remodel.”
  Reply: OK, maybe. You’ve got me (and if you want them to come back, you should keep them.)

• Excuse: “We’ll add a room when we start a family.”
  Reply: Families have a way of starting themselves, whether you’re ready or not. Growing a family is difficult enough without the added stress of remodeling a house thrown into the mix. It would make a lot more sense to add the room first, then the baby, instead of the other way around.

• Excuse: “I’m concerned we’d never get our money back.”
  Reply: Chances are you won’t get all your money back if you sell your home soon after remodeling. According to Remodeling Magazine’s annual “Cost versus Value” report, typical remodeling projects recoup from 67% to 94% of their cost at resale, nationally, depending on the type of project and the region you live in. If you plan to sell the home soon, remodeling may not make sense for you. On the other hand, if you plan to live in your home for five or more years, and you amortize the difference over the that time, and factor in the increased comfort and enjoyment, the remodel may be a bargain. The report in Remodeling Magazine clearly pointed out that “high end” remodels consistently recouped a higher percentage of the cost at resale. In some cases more than the cost. This was due to the buyer’s perception that the higher quality house justified a higher price. In one case cited, a Realtor said ten thousand dollars spent on granite countertops may yield an extra twenty thousand dollars in sales price due to this phenomenon. You can find the “Cost Versus Value” report online at: www.remodeling.hw.net

• Excuse: “We’ll have more money when the kids leave home.”
  Reply: Haven’t you been paying attention? You can’t count on kids ever leaving home these days! Even if they leave, they may be back. Consider building them their own wing now, so at least they’ll be on the other side of the house. The second most common comment I hear from clients is “I wish we’d done this while the kids were still home.” Not surprisingly, the kids say the same thing.

• Excuse: “I’m waiting for the interest rates to come down.”
  Reply: Don’t wait too long, or you’ll miss out on the lowest rates in generations. It’s not likely to get much better than this. If you’d like to test the numbers, there is a handy amortization calculator online at http://ray.met.fsu.edu/~bret/amortize.html  Carpe dinero. Seize the cash.

• Excuse: “Remodeling is expensive, and the economy is too uncertain.”
  Reply: Construction can be expensive, but it’s not getting any cheaper. In these uncertain economic times, many people are choosing to invest in their homes instead of the market. The government subsidizes this choice with favorable treatment at tax time. Not only has real estate been a good investment historically, but you get to enjoy your investment on a daily basis. People are retreating to their homes as a sanctuary, and want them to be as comfortable as possible. I wish that my money which evaporated on Wall Street over last two years had been invested in my home instead.

• Excuse: “I’d love to remodel, but my dog ate the plans.”
  Reply: That excuse makes perfect sense to me. Sounds like one I’ve used myself !”

• So what are you waiting for? Give us a call: 303-444-0033

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