Economy = Bad.
Remodeling = Good!

The economy is in the tank. Home values are declining, and for-sale signs are everywhere. Jobs are being slashed. The credit markets are frozen.

Remodel now? 

Yes, for 10 reasons that, ironically, are mostly related to the housing downturn. According to the SEN Design Group, a national consortium of independent kitchen and bath professionals, which we are proud to be a member of.

SEN has published an informative little consumer booklet called "10 Real Advantages to Remodel Now."

A quick recap of those 10 advantages

1. "Weak resale market." It may be easier to improve your current home than to sell it and buy a nicer place.

2. "Lowest labor costs in years." All those displaced construction workers mean an abundance of trade professionals "at very reasonable rates."

3. "Wider selection and lower prices of new products." Oops, manufacturers introduced a flood of new products just as the housing market started to crash. To gain market share, they've priced many of them low.

4. "Increased flexibility in packaging the project." Hmmm, some remodelers may not like this one. The thinking: the plethora of readily available trades pros lets homeowners and GCs "unbundle" projects and work directly with those trades, thus lowering overall project costs.

5. "More responsive service." Remodelers, plumbers, electricians: they're returning calls and turning around proposals quickly.

6. "Banks chasing home equity loans." Are they? They were back in August, according to SEN, at least "for borrowers who qualify."

7. "Save big bucks on refinancing." Low interest rates = more money to remodel. SEN's hypothetical involves refinancing a 7%, 30-year, $200k mortgage on a home valued at $450k to a 6.5%, 15-year, $150,000 loan (taking out $50k for the new kitchen). Long-term savings: $243,815.

8. "80%-125% return on your kitchen and bath remodeling." SEN cites Money Magazine's returns. For more current data, we at REMODELING magazine suggest you stay tuned to our Cost Vs. Value (see link to 2007 data below) report.  2008 data will be released in November.

9. "Updated kitchens and baths help sell houses." If you remodel your kitchen and bath now, and sell in "2-3 years when the resale market has fully recovered, you are assured of recovering your entire investment within this time period," according to SEN.

10.  "Immediate improvement in your quality of life." Dollars and cents can never measure the emotional satisfaction "of holiday gatherings and spirited parties with friends in your new kitchen."

*Excerpted from Remodeling Online, October 2008

http://www.remodeling.hw.net/blogs/postdetails.aspx?BlogId=remodelingblog&PostId=85410

Please feel free to contact us for a free copy of the booklet

Mortgage Market update

Current Financial Status

Contrary to the media's relentless representation with regards to mortgage lending the banks are still lending money at very acceptable interest rates. Qualifying for a mortgage by providing income documentation is no different than it was last year. There are still no income documentation loans available for all loans types.

Cash out refinances are still going strong for those wishing to pay off debt as well as perform home improvements. There is no better time than now to look at doing your remodel as most contractors are negotiating pretty favorable terms for construction projects.

Recently the government stimulus package raised the conforming loan limit to $729,750 in some areas.  This is only temporary and will change again to $625,000 at the end of 2008.

If you would like more information please do not hesitate to call or send an email.

I can be reached Monday through Friday at 707-778-1185 or email at mceverett@comcast.net