6 Reasons Why You Should Remodel Your NJ Real Estate Home in 2010

Why now is the best time in years to improve your NJ Real Estate home

From the years of 2001 to 2005, the value of the average American home increased by approximately 50 percent. During this time, homeowners sought home equity loans in record numbers in order to improve kitchens, bathrooms, and other rooms in their homes. Investors looked to credit lines to purchase fixer-upper homes, remodel them, and eventually flip them to make a profit. This all came to an end over last two years as home prices fell for the first time in the 40 years that the National Association of Realtors has tracked sales data. Considering the staggering amount of instability in the NJ Real Estate market of today, homeowners are hesitant when it comes to remodeling their homes even if they are in a secure financial situation. One advantage of the slowed market is the emergence of a buyer’s market, giving leverage to anyone looking to purchase materials to start a home improvement project.

Below you will find 6 reasons why it is a wise idea to remodel your home now:

  1. Cheap money

    After years of lending to high-risk borrowers, banks have finally made stricter standards to abide by. However, if a borrower has a satisfactory credit rating, can prove their income, and has 20 percent minimum equity left in their NJ Real Estate home, they can qualify for a line of credit. In addition, interest rates have been lowered by the Federal Reserve multiple times over the past year from 8.25 to 6.4 percent, and analysts expect them to drop even further this year.

  2. Prices for materials have significantly decreased

    With the reduction in demand, construction materials are readily available, and many have dropped in price. Between January 2007 and January 2008, framing lumber fell 15.6 percent, insulation 3.6 percent, and wallboard a staggering 22 percent, making your next project a cost-effective one.

  3. Jobs are completed much faster

    A few years back, it was common to contact a contractor and wait anywhere between 12 and 18 months before a NJ Real Estate home improvement project got underway. These days, jobs are started and completed much quicker, as there are fewer contracts out there and there is less demand. Also, contractors are now taking on smaller jobs as compared to bigger, more expensive jobs of the past in order to keep crews working.

  4. There are fewer, but better, contractors out there now

    Prior to a few years ago, it seemed like anyone with a work truck and metal clipboard called himself a general contractor. Skill, experience, and good working relationships were not a required part of the business until the market started slowing down. Fortunately, many of these bad businesses have failed and inexperienced contractors are more difficult to find these days due to the economy. Most likely, the better, more professional contractors who have been in business longer and have a solid reputation are still around today.

  5. Labor costs are more affordable

    In order to keep busy, more and more contractors are now offering discounted services to their NJ Real Estate clients. Also, big box home stores such as Home Depot are lowering prices and reducing contractor costs to reflect on the slowing economy.

  6. You can have an opportunity to enjoy your home improvements

    Since the NJ Real Estate market has taken such a big hit, a wise idea for you is to wait out the market for a few years in your newly renovated home! After all, what is the point of home improvement if you cannot enjoy it even for a little while?

 

The Real Estate market is changing rapidly and expanding into new avenues almost daily. Sometimes it can be very difficult to find the answers you need on a specific topic or issue. In times like these, you need a Real Estate professional who will provide valuable information and trustworthy advice. For more information on NJ Real Estate, call us today or click here to be connected with one of our top Real Estate specialists.