Duluth, GA 75°F
By Bill Hirsch
Am I nuts? How can I say now is a great time to build when housing starts are a third of what they had been and construction is in a depression? The news is filled with stories about layoffs and businesses closing. This is certainly bad news and the result of the sagging economy. But every cloud has its silver lining. Have you seen what’s been happening at stores recently? They are having one sale after another. I saw where a men’s store was having a “buy one, get two free” sale. Incredible!
In homebuilding and remodeling “stores”, similar sales are going on. Builders are hungry, prices of many construction materials are low, and the vendors are making deals to get business. They are doing whatever they have to stay afloat. Nearly everything in the world of homebuilding and remodeling is “on sale”. If you have the resources, don't wait. Build now and capture the savings.
Why Build or Remodel Now?
Right now, the legendary financial guru Warren Buffett is buying U.S. stocks because he sees them as a low-priced buying opportunity. Building and remodeling costs represent the very same opportunity for you. You can cash in big-time if you act now. But it won’t last forever. As bad as the economy is at the moment, it will rebound. It always does. Economics is cyclical. We happen to be in a trough … in the cycle where prices are lower than they should be. Building now is like going on vacation in the off-season, except the weather is better.
There are no crowds, and your money goes farther.
Just this past summer, gasoline prices hit record highs. Construction material prices went up with them. Delivery costs doubled, and materials with high petroleum content, like roof shingles, jumped in price. All of this has changed. While the sticker price of many things has not been changed back to the lower price, deals are being made. As incentives to get the sale, suppliers are waiving shipping costs, discounting prices and negotiating on the price. Often, all you have to do is mention that you will get other prices. Builders will re-check their figures and improve the price.
Create Your Dream Home
It may be hard to sell a house in this economy. That’s why remodeling makes more sense than ever. If you like where you are located, why not turn your current house into the house of your dreams. A remodeled kitchen, a spruced up bath, or a nice screened porch addition can make your old house feel new again. You might consider “greening” your home by making it more energy efficient. Replacement windows, a new, high efficiency heating and air conditioning system, and additional insulation will make you more comfortable while cutting your energy bills. Even small changes, like replacing flooring or upgrading your plumbing fixtures can have a dramatic, uplifting impact on a tired home. Plus, many remodeling projects boost property values. When the housing market rebounds, you’ll be way ahead.
You might consider landscaping changes and an exterior makeover. I was reviewing bids from landscape contractors with a client just the other day. The high-end landscaping contractor, whose prices were recently 50 percent higher than their weaker competitor, was now offering a price that essentially matched the competitors. The decision of who to use was easy. We chose the top quality company at the moderate company pricing and saved the difference.
However, this opportunity is the proverbial “limited time offer”. In a couple of years, we will look back at today and say, "Wasn't that a great time to build? Everything was such a bargain." Once the economy improves, the prices will surely go up quickly. Take advantage of this golden opportunity to get your dream house built at a price you will never see again. The woes of Wall Street can be a bonanza for you.
William J. Hirsch Jr. AIA, author of Designing Your Perfect House, and The 10 Keys to Controlling Homebuilding Costs. He is an architect who specializes in residential design. You can visit his website at www.designingyourperfecthouse.com
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