Inflation is affecting all of us. Across the gamut, from food to fuel, from the roof to the foundation, everything is costing more than it did just a short year ago. We have all heard the theories about how and why. None of which help.
Remodeling Is No Exception.
Yes, materials are rising, labor less so but still affected. One would look at the market now and in despair opt not to remodel until prices stabilize, and that is what they are most likely to do, stabilize. Not go up, nor down. ‘Waiting it out’? Prices are not likely to drop significantly. May not be a good strategy.
There is a silver lining in all this. While housing costs are up, so is the value of your existing home. Zillow comments that between October of 21 and October of 22 home values are likely to increase almost 14%. That’s $14,000 per every $100,000 of value. If the average value of a home in Prescott AZ is $621,216 according to Zillow, that adds about $85,000 in value to your home. About the average cost of a mid-range kitchen.
Our First Take is WOW, Time To Sell!
Sure, you would make a killing, but where do you go? Unless you’re willing to relocate to some small town where the economics haven’t wreaked havoc, you will pay more for a smaller home. Again, not sound strategy.
If you are wanting to remodel your home, for whatever the reason is, consider the following strategy.
Take the time to research design and build teams. Select the one you are comfortable working with. We have written many articles on what to ask and look for. This time add at least these two questions, “how will you work with us on pricing strategy?” Build on this with queries such as ‘Can we DIY some things?’ ‘Can we supply some items ourselves?’ That ensures that you will eventually be straight about your budget and your ability to participate. Second question, ‘What strategies do you employ to ensure pricing stability.’ While no one can control all costs, the answer will give you an indication of the level of professionalism as well as seriousness of the willingness to not only pay attention, but to advocate for you. Up to this point you haven’t spent anything yet.
Once you have made your selection, (after having vetted the company thoroughly), you need to engage a planning process that is very detailed. This is hugely important. More so now than before inflation. It is this process that will define the purchasing strategy, pricing strategy, construction strategy, and establish the schedule. By adhering to the details with your chosen firm you will be able to navigate the crazy waters out there most effectively.
With increased value in your home comes increased equity. If your goal is to finance all or a portion of your remodel, now is the time to act.
In many ways, NOW is a great time to remodel. Call us or email us for a free consultation. We are happy to have a discussion now and provide more tools for your decision-making process.