Is Now a Good Time to Consider Remodeling Your Home?

Taking on a major remodeling project is truly an important financial decision. When meeting with potential clients for the first time, I often tell them that H&H Builders has three primary sources of competition: moving instead of remodeling, postponing a project for a later date, and flat-out deciding not to do the project. I would like to offer you some considerations in regards to these three possibilities.

Moving Instead of Remodeling

Moving instead of remodeling incurs emotional and financial costs that should be weighed against those

incurred by remodeling.

1. Transaction costs:

Selling your existing home and buying a different one means paying brokerage and

other transaction fees.

2. Loss of equity:

It may also mean giving up the equity that you have in your current home in order to

finance the down payment.

3. Sales, buying and moving effort:

Then, there is the time, effort, and inconvenience of staging your

home, scheduling showings, sorting your possessions before and after, packing and unpacking. You will

also need to arrange for utility transfers and do the multitude of things that are needed to establish

yourself in a new home.

4. Neighborhood & commuting:

Two huge factors to think about are changes in your commuting time, especially if you are buying a new home that is located farther from where you work, and how much you enjoy your current neighbors and neighborhood. The emotional price of reestablishing yourself in a “new” neighborhood can be quite high.

5. Cost of purchase vs remodeling:

Financially, the prices of new and existing homes in the Denver/Boulder metro areas are at an all-time high and are very unlikely to decrease substantially anytime in the next decade. Currently, it is often less expensive to remodel your current house in order to achieve your dream home than to move to a new and/or different house.

6. Broken dreams:

Furthermore, unless you build a custom home, it will likely be very difficult to find an existing or new house that meets all of your current needs and dreams without remodeling that house. This places you back in the same situation that is driving you towards moving in the first place.

7. Other costs:

If you buy a new house, you will also face costs for landscaping that are not included in the sale price of the new house. This may also be true of buying an existing house if you don’t like its existing landscaping.

H&H Builders can transform your existing home into a “new” home that meets your needs and wishes

without placing the above burdens on you.

Postponing a Project for a Later Date

Since the spike in interest rates due to the Federal Reserve Board’s determination to reduce inflation

began in 2022, I have heard potential clients tell me that they are going to postpone their project to a

(usually undetermined) future date. Usually, they are hoping that they will save money by doing so.

However, there are several factors to consider when postponing a remodeling project:

1. Inflation and Material Costs: Postponing your project will mean that you end up paying more for the

same work in the future. Construction materials have historically risen in price, and labor costs tend to

follow suit. Over the past 60+ years, construction costs have gone up an average of 3.8% annually.

2. Market Conditions: The real estate market is unpredictable. While interest rates and home prices

fluctuate, there is no guarantee that waiting will result in more favorable conditions. In fact, delaying a

project could result in higher financing costs if interest rates rise further. Even if interest rates decline

the savings due to the decrease will take years to make up for the increase in construction costs due to

inflation.

3. Your Enjoyment and Utility: Delaying a remodel means postponing the benefits that come with it.

Whether it’s a more functional kitchen, an additional bathroom, or a larger and more comfortable living

space, postponing the project means you will not be able to enjoy these improvements in the near term.

4. Home Value: Remodeling will increase the value of your home. By postponing the project, you will

miss out on the potential appreciation in home value that the improvements could bring. This can be

especially significant if you plan to sell your home at some point in the future.

Deciding Not to Do the Project

Finally, some people decide not to pursue a remodeling project at all. This decision might be based on

financial concerns, perceived inconvenience, or uncertainty about the future. While this is a valid choice,

it is important to consider the long-term implications:

1. Home Deterioration: Over time, homes require maintenance and updates. Avoiding a remodel might

lead to larger and more costly repairs in the future if issues are not addressed promptly.

2. Quality of Life: Living in a space that does not meet your needs or preferences can impact your overall

quality of life. A well-executed remodel can enhance your comfort and satisfaction with your home.

3. Resale Value: Even if you are not planning to sell your home immediately, making improvements will

increase its marketability and resale value. Potential buyers often look for updated features and modern

amenities.

Let's Get Started with your Denver Design-Build Remodel!

In conclusion, whether you choose to move, postpone your remodeling project, or decide against it

altogether, it is crucial to weigh the emotional and financial costs involved. At H&H Builders, we are

committed to helping you improve your life by transforming your existing home into a space that meets

your needs and dreams without the burdens associated with moving or delaying your project. Now may

be an opportune time to consider remodeling your home, given the potential long-term benefits and the

unique advantages of enhancing your current living space.

Is Now a Good Time to Consider Remodeling Your Home?

Moving Instead of Remodeling

Postponing a Project for a Later Date

Deciding Not to Do the Project

Let's Get Started with your Denver Design-Build Remodel!

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