Is it a good time to Remodel?

Recently, I have been asked this question by a writer for a St Louis Homes magazine.  From many conversations with homeowners and builders alike in the past few months, I get the sense that this question is on the minds of many.  It is most pertinent for homeowners considering ‘elective’ and high-cost projects such as a second story addition, finished basements or a kitchen remodeling.

For homeowners needing to repair a leaking roof or faulty wiring this is less of an issue, as their respective projects are far less costly and are not typically elective (i.e., the work must be done without delay).So, is it (a good time to remodel)? Well, I certainly believe so! The argument against remodeling in a slow real estate market goes like this: because home prices are not increasing as they used to it does not make sense to increase ones investment in the property by spending money on remodeling. The Cost-vs.-Value equation is less attractive as, at current market conditions, less of the cost of the remodeling project considered could be recaptured.

Well, I never subscribed to the ‘remodeling as an investment’ school of thought. Many other investments carry less of a risk and offer potentially better returns. Remodeling (especially major remodeling projects) is pervasive. It affects the family life in very significant ways and may last for many months. Real hardship is involved, many decisions need to be made throughout the project and sacrifices are needed from all in the household.  Furthermore, contractors as a group are Read more