Some saavy homeowners are taking advantage of the economic downturn, and finding significant savings on remodeling projects. An article in last week's NYT House & Home section gives a few examples of projects completed at steep discounts compared to a year ago. Interest rates are low and contractors are hungry, which makes it a great time to remodel or add on to your home.
The Times article suggests that this might be a good time to shop around for a deep discount, but I would expect cost reductions closer to 10 percent as compared to last year. The bigger difference now is availability. Portland remodeling pros had a full plate last year, and you'd be lucky to get a call back from some of the better builders in town. That has definitely changed, and now is a great time to get these skilled craftspeople working on your project.
Some things to keep in mind if you are planning a remodel project:
- Basic building materials (e.g. lumber, steel and copper) are much cheaper than a year ago. But these make up only a small portion of the project cost. Expect slimmer discounts (if any) on the fun stuff – tile, windows, and plumbing fixtures to name a few.
- Surprises do happen on remodel jobs, even with the best builders on board. So be sure you are choosing someone who is very experienced working on older homes, and who knows how to plan for these setbacks.
- The pool of renovation contractors has widened significantly, since work has dried up for the production builders. This means a lot of new-home builders are now selling themselves as "remodelers". You might get a much lower bid from these crews, but will they still be in business when you have a warranty issue in a year? Will there be change orders during the project once they realize their bid was unrealistic?
- Hire a good architect to guide you through the process, and to help maximize the value of your investment. You'll get a much more accurate price with even the most preliminary set of plans, and potential builders will know you are serious about the project.
- Be fair. It is okay to ask contractors to be more aggressive with their pricing, but ultimately you want them to be happy while working on your house –it will show in the quality of the finished product.
I maintain a list of reputable remodeling contractors that I will share with clients, and I'll tailor those recommendations based on the scope of work, project location and even personality (yours and theirs). Also check out this six part blog series for some other useful suggestions.