Everthing Old is New Again
????The trend toward delaying moves and staying put has been a boon for remodelers as more homeowners decide to upgrade rather than relocate.?
????This is particularly true in Jacksonville, where much new development is taking place outside the urban core and where there is a huge stock of older homes, ranging from ranch-style production homes built in the ‘70s to one-of-a-kind historic homes built in the ‘20s.
????That’s one reason membership in the Remodelers Council of the Northeast Florida Builders Association has soared from 33 to 109 in the past year, making it the fastest-growing council in the country.
????“By 2015, remodeling is expected to outpace new construction,” says Larry Murr, owner of Lawrence Murr Remodeling and 2008 council chairman.
????National stats back him up. The National Association of Home Builders’ (NAHB) 2007 Remodeling Market Index registered 46.2, up from 44.8 the previous quarter. Any reading over 50 indicates that the majority of remodelers view market conditions as improving, so 46.2 isn’t exactly a resounding reading—but at least it’s trending upward.?
????In addition, the Harvard University Joint Center for Housing Studies found that homeowners spent $174 billion on remodeling in 2007, up from $84 billion in 1995, the first year the center began tracking statistics. The number should hit $450 billion in the next six years, according to the study.
????“The remodeling market is not experiencing the dip in production and sales being seen by the new-home sector,” says NAHB Remodelers Chairman Mike Nagel of Chicago.
While no one likes seeing a dip in any sector, Greaves says the slowdown in new construction does present a silver lining for homeowners choosing to remodel.?
????“Materials show up quicker,” Nagel notes. “Subcontractors are there immediately. Job times are faster overall. That saves the homeowner money because remodeling is highly supervised and the less time I have to supervise, the less it will cost.”
????And the future of remodeling looks bright, with growth projected even when the new-home market recovers.
????Remodeling, which currently accounts for 40 percent of residential construction, is expected to overtake new-home construction by dollar volume within the decade.
????Helping propel the remodeling market is the trend toward downtown living and the allure of older, established neighborhoods.
????People who already own property in desirable, close-in locales are using equity to finance improvements while people moving in are upgrading aging homes with new-home comforts.
These established neighborhoods—San Marco, Riverside/Avondale, St. Nicholas and many others—offer fertile territory for qualified remodelers.
????“There’s a desire to be near the downtown areas, and one way to do that is to invest in historic and infill areas,” says Frank Rodgers, president of Finial Builders. Rodgers adds that, unlike the days when people were buying older homes and “flipping” them for a quick profit, homeowners who remodel are now planning to stay put.?
????But should they decide to sell, they’ll likely recoup much of their investment.?
????According to Remodeling Magazine, kitchen and bath remodels bring the highest returns. After one year, a minor kitchen remodel will return 82.7 percent on average while a bathroom redo will return 78.8 percent.?
????Improving the home’s exterior is a good investment, too. New siding—one of the least costly projects listed in the 2007 Cost. vs. Value Report—averaged an 85.1 percent return.?
????But a word to the wise when altering the exterior: make sure it blends with the character of the neighborhood.?
????Frank Shirley echoes this sentiment in his book New Rooms for Old Houses. He writes: “For an addition to an old house to work, it must be in harmony with the original structure. Achieving harmony is not simply a matter of replicating what is already there, but of understanding the design principles of the original home and using them in your addition.”
????In other words, a remodel or addition is only as good as the firm responsible for the project—and choosing the right remodeler requires a bit of research.?
????The National Association of the Remodeling Industry (NARI) has plenty of advice on the subject and a downloadable brochure filled with valuable information. The organization’s Web site has even more, including a list of questions you should ask a potential contractor.
????But do you always need a contractor? In fact, many smaller projects can be tackled by a skilled do-it-yourselfer. But even small jobs could end up costing you more, not less, if you run into trouble—and chances are you will.?
????Remodeling is rarely without unexpected—and expensive—complications. These surprises have prompted many a DIYer to make a rescue call. Thus most remodelers have become skilled problem-solvers.?
????For example, moving plumbing, upgrading electrical service and relocating walls require a professional, and usually a permit.
????Just make sure that you choose a professional who is experienced in residential remodeling and the special challenges it represents. And someone with whom you are personally compatible.
????To stand out in a growing crowd, many remodelers are earning professional designations that differentiate them as highly trained in a specific area. For example, in response to the demand for remodelers who are trained to deal with needs of older homeowners, NAHB created a designation called Certified Aging-in-Place Specialist (CAPS).
????Aging-in-place home-design techniques enable people to stay in their homes longer by making certain that accessibility is emphasized from the outset. Last year 16 local contractors attended CAPS courses and earned the designation.
????Similarly, interest in green remodeling is on the rise. In a 2006 survey of builders by Green Builder Media and IMRE Communications, it was found that 41 percent of buyers ask about environmental friendliness and energy efficiency. And when it’s time for a remodel, many are going green.
????According to the Sustainable Building Industry Council (SBIC), homeowners who choose to remodel green can lower their energy consumption by 30-50 percent. A NARI Green Certified Professional (GCP) will know how to seamlessly incorporate cost-saving and earth-sustaining concepts into projects.
????Some owners are looking for economical ways to increase the value and livability of their home. For others, cost is not a factor in creating the home of their dreams.?
????Along that broad continuum, there’s a remodeling solution for almost any challenge. All it takes is a plan, some patience, and a remodeling pro who can make it happen.
Certification 101: Remodelers Sharpen Their Skills
In addition to being licensed by the state as contractors, many professional remodelers have specialized training or certifications. Both the National Association of Home Builders (NAHB) and the National Association of the Remodeling Industry (NARI) offer certification programs.
????NARI certification programs recognize the skills and achievements in five distinct groups of remodeling professionals, for example Certified Kitchen and Bath Remodelers (CKBR). This certification gives a homeowner an added sense of security knowing that the remodeling professional they hire has received an acceptable review by the NARI Certification Board.?
????NAHB certification programs include several remodeling-specific designations, including Certified Graduate Remodeler (CGR), Certified Aging-in-Place Specialist (CAPS) and Certified Green Professional (CGP).
????CGR is an exclusive designation designed to emphasize business management skills as the key to a professional remodeling operation. These individuals have proven track records of success, must complete a comprehensive training curriculum and pledge to uphold a rigorous code of ethics. Graduates must also meet recertification criteria every three years.
????A CAPS designation indicates proven technical, business management and customer service skills essential to competing in the fastest growing segment of the residential remodeling industry—home modifications for the aging-in-place. Aging-in-place adjustments allow one to remain in their home regardless of age or despite any physical limitations.?
????Similarly, CGP certification is on the rise. This designation recognizes those who incorporate green building principles into homes, without driving up the cost of construction. The training provides a solid background in green building methods as well as the tools to reach consumers.
????For more information about certifications, visit www.nari.org and www.nahb.org.
????Source: The National Association of Home Builders, National Association of the Remodeling Industry
Doing Your Homework
When you hire a remodeler, you are buying a service rather than a product. The quality of service the remodeler provides will determine the quality of the finished product and your satisfaction with the result. Here are some steps to follow and things to keep in mind.
????The first step to hiring a professional is to build a list of candidates, and flipping through the Yellow Pages is not the ideal method. The best place to start is the Directory of Professional Remodelers (accessible online www.nahb.org). These home contractors uphold the highest professional and ethical standards in the industry.?
????In addition, seek referrals from trade associations such as the Northeast Florida Builders Association (NEFBA), as well as friends, family, neighbors, coworkers and others who have had remodeling work done. Independent trade contractors, building materials suppliers, architects, engineers, home inspectors, local lenders and insurance professionals can also provide reputable leads.
????Once you have developed a list of potential remodelers, check with the local or state office of consumer protection and the local Better Business Bureau. Ask if they have had any complaints about the remodeler. If so, were those complaints resolved satisfactorily?
????Also check with the state’s licensing agency and state and local building inspectors to see if they have received any complaints about the remodeler and to verify that the remodeler has the appropriate licenses and registrations.
????You don’t want to just question the remodeler, but also learn first hand from the remodeler’s current and former customers.
????For more information, log onto the National Association of Home Builders’ Web site at www.nahb.org/remodel to read an online brochure.
????You can also call NEFBA at (904) 725-4355 for a list of Remodelers Council members.
Cost vs. Return
Each year Remodeling Magazine compiles a Cost vs. Value Report, the industry’s only detailed account of investment returns for remodeling projects. The report establishes cost-to-construct benchmarks for common remodeling projects then estimates how much of that investment will be recouped at resale in the current market. These are South Atlantic regional averages so they may vary from prices in Florida.
MAJOR KITCHEN REMODEL
Average cost: $52,659? ?
Average resale value: $41,766?
Expected return: 79.3 percent
MINOR KITCHEN REMODEL
Average cost: $20,221? ?
Average resale value: $16,727?
Expected return: 82.7 percent
FAMILY ROOM ADDITION
Average cost: $70,867? ?
Average resale value: $51,004?
Expected return: 72 percent
BATHROOM ADDITION
Average cost: $33,236? ?
Average resale value: $22,670?
Expected return: 68.2 percent
BATHROOM REMODEL
Average cost: $14,445? ?
Average resale value: $11,388?
Expected return: 78.8 percent
MASTER SUITE ADDITION
Average cost: $88,680? ?
Average resale value: $64,549?
Expected return: 72.8 percent
TWO-STORY ADDITION
Average cost: $127,072? ?
Average resale value: $99,464?
Expected return: 78.3 percent
HOME OFFICE REMODEL
Average cost: $25,438? ?
Average resale value: $15,209?
Expected return: 59.8 percent
DECK ADDITION - WOOD
Average cost: $9,266? ?
Average resale value: $7,936
Expected return: 85.6 percent
Source: Cost vs. Value Report 2007
(www.remodeling.hw.net)