Things definitely seem to be turning around as experts project a $16 billion* increase in home remodeling expenditures this year (up from $280 billion).
Homeowners who may have been planning to move into larger or smaller homes before the recession are now considering changes to their current homes to accommodate their changing needs:
- Anticipating an empty nest in a too big house, some are looking at situations where college age children have remained (or returned) home and need to make it more livable for adults.
- Expanding families are now looking to expand their homes instead of moving into a larger house that may or may not retain its current value.
- A larger kitchen could be created by expanding into the kid's bedroom next door.
- The master bath could be added off the back of the house at the same time we add a changing room by the pool.
Other types of improvements can have an even greater impact on your home's value. Particularly those projects that can improve energy efficiency. For instance, by upgrading older air conditioners with SEER (Seasonal Energy Efficiency Ratio) ratings of 8 or less to with one of today's 15 or 16 SEER AC units, homeowners can save upwards of 50% on their monthly cooling costs. Other appliance and lighting upgrades can help homeowners make significant energy savings.
Not only will potential buyers gravitate to homes that cost less to run, but you'll enjoy those monthly savings, too.
Projects large and small can help lower utility bills. For those larger projects, it's always best to work with qualified professionals.
It might look like you can save a few dollars here and there by doing it yourself, but in the long run, using an experienced contractor will save you money because they:
- Receive discounted pricing on most materials and supplies that can be passed onto you
- Know how to make installations within the manufacturer's requirements, ensuring that any applicable warranties are honored
- Have the specialty (and often very expensive) tools and equipment to do the work quickly and efficiently
- Know local codes and requirements
- Understand what building permits and inspections are required and how to get them
- Bring special expertise to projects that also involve home insurance and warranty claims.
- Provide insider knowledge on projects that also involve HUD regulations, such as their popular 203(k) Rehabilitation Loan program, where qualified contractors:
- Help the process move more quickly. Lenders and buyers appreciate quotes that sail through the loan underwriting process the first time
- Educate the agents, buyers and lenders involved on allowed improvements
- Keep the project on the required schedule
- Ensuring that the buyer's loan process is completed correctly at the end of the renovation project.
Also, when you factor in the value of your time, it just makes more sense to use an experienced professional. Think about the hours (or days) you'll need to spend on a do-it-yourself project:
- running around town researching codes and getting permits
- going online to learn how to feather drywall mud or properly caulk windows
- finding, buying and delivering the least expensive materials
- researching FHA (HUD) regulations and requirements
Qualified contractors take care of all these things for you, it's a huge part of the value they bring to your home improvement projects.
From tax consultants to lawyers and doctors, we depend on trained professionals to help us with their expertise.
It would be nearly impossible for the average consumer to maintain up-to-date knowledge of:
- annual changes in the tax laws
- how new federal, state and local legislation might impact us
- the latest developments in cardiovascular and cancer treatments and medications
We understand that these professionals are continuously learning throughout their careers to ensure that they are doing their best for their clients and patients.
But we don't always appreciate the importance of staying current on industry changes in some of the other types of professionals we hire regularly.
We probably wouldn't choose a doctor because, "He's close by, fast and cheap." But we might use a neighbor's recommendation like: "Pete down the street has been taking care of my AC for years...."
Chances are, we're not going to ask if Pete knows about:
- the government and utility incentives available to homeowners who upgrade or retrofit their HVAC (heating, ventilation, air conditioning) systems?
- all the EPA regulations that are and will continue to impact the heating and air conditioning industry?
- how to properly capture and recycle vented or leaked Freon (R-22 refrigerant)?
- how much the price of Freon will exponentially increase as it's manufacture and use is restricted in the coming years?
- what modifications need to be made in your unit to convert from R-22 to R-410A (a blend of hydrofluorocarbons that does not contribute to ozone depletion)?
- how to maximize your units efficiency with proper regular maintenance?
- what your AC manufacturer's maintenance recommendations are?
However, it's vitally important that the HVAC technician you hire to service and maintain your heating and air conditioning system, knows these things. Anyone who tells you, "don't worry about that tiny Freon leak, I'll stop by in a couple months and refill it for you..." does not have your best interests in mind:
- First off, it's against the law (as of 2010) to allow Freon to escape into the atmosphere. You could be cited and fined for knowingly allowing your coils to leak Freon.
- Secondly, with increasing restriction on Freon production, the price will be steadily increasing (in some case monthly), so his bi-monthly "top offs" will become more and more expensive
At the very least, you need to immediately fix such leaks. But, even better, would be to upgrade your unit to one that does not use this outdated coolant.
A qualified professional AC technician will know about the best EnergyStar rated systems for your home as well as all the incentives available to help you off-set your investment in a new system.
Notes:
*Home remodeling expenditures: According to the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, remodeling expenditure is currently estimated at $280 billion dollars a year. That represents almost 40 percent of all residential construction and improvement spending and more than 2 percent of the U.S. economy. Their Leading Indicator of Remodeling Activity (LIRA) report projects annual spending will see healthy growth in 2012, ending the year up 5.9%. That's $16.52 billion more spent on remodeling this year!
**SEER rating Seasonal Energy Efficiency Ratio
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