Now is a good time to remodel

By Chris Ettel
TBA 2008 Remodelers Council chairman

“There has never been a better time in recent history to remodel your home.”
Sounds like a pretty bold statement, so let’s look at some important facts that support this opinion.

Great rates
First, interest rates continue to be very attractive. There are more financing options today than ever before. One of the easiest and most cost-effective ways to finance your remodeling project is with an equity line of credit.
Most of us have enjoyed significant appreciation of our homes during the last several years, which has provided a great deal of equity ( the difference between the value of your home and what you owe.) Typically, lenders will set up for you an equity line of credit up to as much as 90 percent to 95 percent of your home’s market value with minimal or no closing costs.
Another financing alternative is to refinance your existing mortgage, especially if your current rate is higher than today’s market rates. Many lenders offer a renovation refinance loan that provides the funds for your project with one closing cost- an arrangement that will save you money. When the work is completed, the loan converts to a permanent loan. Typically, the loan will be based upon the improved value of your home.
Most of us enjoy our home and neighborhood, but are interested in updating our existing spaces or adding on. Renovating your home will not only improve your life-style, but it also historically has been a good investment.

Sound investment
The nationally distributed Remodeling magazine’s Cost vs. Value report estimates the costs of a number of typical renovation projects in different areas around the country and reports how much homeowners would recoup if they sold their home within the year.
The report is broken down by regions. In our area, you can expect a major kitchen remodel to recoup 82.7 percent of its cost. A bathroom remodel should recoup about 78.8 percent, a family room addition 72 percent and a master suite addition 72.8 percent. Keep in mind, however, the longer you stay in your home, the more the in-vestment pays off. With typical home value appreciation, most remodeling will pay for itself in a few years.

Professional remodelers
So, if you’ve been contemplating that renovation of your dreams, don’t wait any longer. There are professional remodelers ready to make your dreams come true. Here at Tidewater Builders Association, we are working hard to raise the bar on the professionalism in our industry to help ensure you have a great remodeling experience.
Please visit TBA’s Web site at www.tbaonline.org for a list of professional qualified remodelers. You’ll also find a directory of Remodelers Council members on page 40 of this magazine. Good luck, and happy remodeling.

(Chris Ettel is a partner in VB Homes in Virginia Beach, a company that specializes in architecture, construction and renovation. He can be reached at Chris@vbhomesliving.com.)