Katy Lifestyles and Homes magazine Nov 2009: Home Elements1 - Consider Remodeling as an Option to Buying a New Home

By Sandra Meineke

Builder confidence in the market for newly built, single-family homes edged higher for a third consecutive month in September, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index.

“Builders are seeing some improvement in buyer demand as a result of the first-time home buyer tax credit, and low mortgage rates and strong housing affordability have also helped to revive some optimism, ” said Joe Robson, NAHB chairman. “However the window is now closed … for buyers to take advantage of the tax credit, and builders are concerned about what will keep the market moving once the credit is gone. ”

“The report indicates that builders are starting to see some glimmers of light at the end of the tunnel in terms of improving sales activity, ” said NAHB Chief Economist David Crowe. “This is a very fragile recovery period, and several major hurdles remain that could stifle the positive momentum. Those hurdles include the impending expiration of the $8,000 tax credit as well as the critical lack of credit for housing production loans and continuing problems with low appraisals. ”

Remodeling as an Option

For those who are not in a position to buy a new home or just want to stay where they are, this might be the time to think about remodeling the current homestead while interest rates are still low.

The reasons for remodeling are as varied as the projects themselves. Some of these include: adding more space; upgrading cabinets, counters, appliances and fixtures; creating a floor plan or better use of current floor space; improving energy efficiency and increasing the resale value of the home. Before deciding on a remodeling project or a new home purchase consider the following tips from NAHB.

Where to Begin

Write a prioritized list of your needs and wants. Consult magazines and Web sites and collect photos of projects or homes you like. The more clearly you can envision and describe your design the better prepared you will be when decision time comes.

Think about traffic patterns, furniture size and placement, colors, lighting and how you expect to use the new space. To create a space for someone with limited mobility consider contacting a Certified Aging-in-Place Specialist. For better home efficiency, hire a remodeler with green home experience.

Figure out how much money you have to spend on the remodeling job or on furnishings, landscaping and other necessities for your new home or newly-expanded space.

Once you have created your list of requirements, decide how to accomplish your vision. Will you use a professional home remodeler, do it yourself or is the project so big that you really have to move to get what you need and want in your living space?

Thinking Green

One thing to consider seriously when buying a new home or remodeling an older structure is energy efficiency, which can save you a tremen- dous amount of money on utilities and maintenance.

NAHB’s New American Home, designed anew every year, is always a leader in green building. This year ’s model, introduced at the NAHB International Builders Show in January, featured natural gas heating and cooling, photovoltaic cells, solar water heating and innovative insulation ideas. “The whole package of energy-efficiency products worked together to make this a near-zero energy home, ” said Bill Nolan, chairman of the New American Home task force. “The home was sited to optimize solar resources and incorporated landscape design that helps limit water and energy demand. Soil erosion and disturbance was kept to a minimum. “The design concepts, construction techniques and materials used in the New American Home 2009 can be adopted for use in any home, ” Nolan said. “The showcase home is a collection of ideas for the industry to take away and put into any new or remodeled home. ” For more details, visit www.tnah.com.

The most important part of any remodeling project is making sure you don’t go over your budget. Doing so can lead to settling for unexpected options, disagreements with contractors and worst case, an unfinished room.

This is why the National Kitchen & Bath Association (NKBA) is providing homeowners with a few simple guidelines to follow when remodeling. Follow the steps below from the NKBA to make sure your remodel is everything you expected, at a price you can live with.

Differentiate between

“need” and “want”

Research the costs of many different kinds of products and materials starting with the most expensive necessities down to the items you can do without. Major appliances should be at the top of your list since they will cost the most. Know the difference between needing something and just wanting it. Start your budget with things you need.

Make a top 10 list

Look around your kitchen and/or bathroom and decide what needs to be replaced the most and what can be worked on down the road. Remember the needs of your family. If you have small children, safety should be taken into consideration when prioritizing, or if a family member is handicapped or elderly, this should be budgeted into your costs and design as well.

Resist temptation

Know exactly what you want before you search for it so you’re not tempted to buy out of your range. Uncertainty may leave you vulnerable to purchasing unnecessary products and to choosing materials that go

beyond your means. Know what features are most important to you and your family so it's easier to choose when the time comes. There ’s an abundance of different appliances that offer different features but most will get the job done, so if your budget doesn ’t allow it, don’t pick anything too fancy or high-tech.

Get a quote

A designer and/or contractor should always visit your home before providing you with a quote for the design and installation. Don ’t accept a quote for your project until a full survey has been completed. Make sure the quote is thorough to avoid overspending down the road and any misunderstandings.

Double-check

Make sure to visit a showroom to see the products and materials in person in order to determine the quality of what you ’re buying before you buy it. Magazine and Internet photos are not as reliable as they may seem and may be overpriced for what you ’re getting. Try to get referrals from people you trust. Don’t be afraid to ask friends, neighbors and family members to see their kitchens and ask who they hired. This is a great way to envision the quality of the result of your kitchen if you decide to use the same designer and contractors.

Keep track of your payments

Arrange a clearly defined payment schedule. Ask for several installments throughout the project. Never pay in full until you have received delivery of all your goods. Companies that ask for full payment ahead of delivery have your money —but you don’t have your appliances or completed kitchen or bath.