In this economy why would it make sense for the home-owner to spend dollars on renovating now? In addressing this question,  I received some very interesting, yet rational answers from various key industries spokespeople over a series of meetings; a residential real estate broker, an architect, an interior designer and our very own boss, Liam Egan of Capital Craftsmen.

When dollars are most precious, does it make sense to spend? Is there a positive to renovating now? And, if so, why is it a really intelligent move. The answers are varied and numerous.

Here are a few incentives to renovate now vs. the pre-2008 era:

Labor costs are less expensive.

The consumer gets better pricing on goods and services.

The trades are available, ready, and willing to start work more immediately.

The work can be executed at a faster pace due to the availability of sub-contractors.

More attention is paid to the client

The consumer gets more for their money because of more rigorous bidding, and the interest rates are at a low point (if so-vrey slowly rising during the first quarter of 2011).

Real estate brokers note that there are a number of reasons why now is a good time for the consumer to consider buying and renovating;  historically low interest rates and the availability of tax credits means the market is stable because lenders have tightened their lending requirements and there is the perception that ‘value’ exists in the market right now.  It is now a well-balanced industry that sees buyers and sellers on relatively equal footing. Unlike the previous markets which saw a sharp rise in seller’s prices, this one is more stabilized. Buyers are seeing more reasonable prices; that is, they see value in the marketplace and are therefore purchasing fairly priced properties.

For the contractor, similar observations are made. Liam Egan believes that this economy “presents an opportunity to work with the best available labor, which is now ready and willing.” From his perspective, “with a more relaxed economy, building is performed at the highest level of standards.” In addition, the industry has provided various building materials and energy rebates, along with various tax credits. Egan notes that “Renovating saves the cost of selling and moving. Invest in your current home is the best tactic in these economic times or increase your property value in a matter of months”.

And, for the architect and designer, this upside down economy actually provides an excellent venue for the client to renovate and redecorate also. First and foremost, the best of the best is available. The vendors are motivated to supply the architect and designer with materials almost on demand. As Gail Green, of Green & Company, notes, “This is a superb time for the consumer to renovate; they get lots of attention from vendors, and the best available pricing from the contractor.” From her perspective, the three most valuable investments for the consumer now are: the kitchen, the bath, and the master plan. Of course, kitchens and baths, while the most expensive rooms in the house to renovate are also the most remunerative investment. They add an enormous value to the real estate. A more discrete and less obvious investment, which in theory is the most valuable, is a concept, a Master Plan. Green believes that this two-dimensional layout is extremely important to the success of the flow of the house. Before anyone invests in beautiful furniture, they need to invest in a developed scheme, one in which all the pieces fit perfectly in place. She says that “once you have a plan, you can then implement it one piece at a time.” “Invest in a plan, and you invest in the basic foundation of your home, one that will last forever.”

For these professions, this economy has an upside. The positives preside for the consumer, as they enable the buyer to get both excellent service and great value. Call Capital and ask for Liam @516 487 6097 for a free-consultation about your existing space today.