December 10, 2008
I was trying to think of what to write today–with all that is happening in the economy, even my brain feels slowed down. Then I remembered hearing someone say “Could there be a better time to remodel?” This struck me as a strange thing to say (even though I want it to be true), so I decided to see what others are saying:
“Despite the market, remodeling actually retains and increases the value of the home and puts the home owner in a better position when the market begins to be favorable again. In addition, the homeowner gets to enjoy the freshly updated living space.”
I never thought of remodeling your home as a way to “retain” value, only as a means to increase it, but this makes sense. One thing to keep in mind, however, is that just because house pricing fell, doesn’t mean that remodeling prices have. An interesting article from LA Times talks about this.
What you need to keep in mind is that remodeling prices are based on labor and materials–neither of which was inflated during the housing bubble, and thus are not going to deflate. I have listed some good estimates on my website on what remodeling costs are.