Remodeling in a Recession - A Wise Investment?

It's true that right now may not be the best time toNot only can your contractor charge less for
sell your home. With real estate values dropping,materials (because they are paying less) but they are
many homeowners who want to sell won't be ablealso willing to charge less for labor in order to secure
to sell their home for what they thought they maymore work.
have been able to a few years ago.Even DIYers can save money on renovations right
However, if you aren't trying to sell your home rightnow just by saving on materials. For example,
now, and have been putting off a remodeling job thisaccording to the National Association of Home
might just be the best time to tackle the project.Builders (NAHB), framing lumber prices are the lowest
Why you ask?they have been in 4 years.
Just as the cost of homes is dropping, the cost ofThe trick, of course, if you do have a home sale
remodeling is dropping- including building materials andanywhere in your future, is to assess the current
contractor's fees. And while it may be difficult tovalue of your home and the value that your remodel
think about spending money on your home when thewill add to your home. When you sell, you will only
values are falling- taking advantage of lowerrecoup some of the value in your resale so you want
remodeling costs could be a great investment if youto make sure you are not investing too much more
are not planning on selling your home anytime soon.than what you may get in return. For a good idea of
As disclosed in a study by HousingEconomics.com,national remodeling costs and recouped costs, visit
the number of building permits in the United StatesRemodeling magazine's cost vs. recoup report. Note:
has decreased in 2008 by 41% from 2007. ThisIf you do hire a contractor, make sure they have
means less people are building, which can be good forinsurance to cover them in case they are injured on
a consumer trying to get competitive pricing from ayour property, otherwise, check your homeowners
contractor.insurance policy to see if you have enough.