July 2007
Remodeling booms as home sales cool
Even as home sales decline, U.S. consumers are spending money on their houses at a record rate.
Housing starts are down, according to the U.S. Department of Commerce. Sales of existing and new homes have cooled too, says
the National Association of Realtors. And the supply of unsold homes has risen to its highest level since April 1993. But
at least so far, the real-estate decline hasn't hurt the home-remodeling business. The Home Improvement Research Institute
expects spending to reach more than $312 billion this year, almost a 9 percent increase over last year's record of about $287
billion. Need more proof? Big-box giant Lowe's projects sales to rise 11 percent this year.
That inverse scenario between housing sales and remodeling spending makes sense: A slowing market and rising interest rates make it harder to trade up and more inviting to better feather the nest you already have.
On the downside, tougher, pricier credit can mean less money to create your dream kitchen or bath. What's more, you may not get as much back for even the best remodeling investments if you sell your home. That's why getting the right financing and choosing the best pros and products are especially critical now.
Financing a remodel
Even before you start, get a handle on which improvements will ultimately return the most on your investment when it comes time to sell. For a kitchen remodel, the free Kitchen Remodel Cost Calculator, provided by RSMeans, will help you budget your makeover, whether it involves the basics or fancier features.
Hiring a contractor and managing the project
There are a number of ways to ensure that your remodel goes smoothly. Chief among them is to properly research and hire a reliable professional and have that person map out the project in writing, which will help you stay on budget. During the planning stages, avoid major goofs that can ruin a remodel, such as not incorporating enough storage or under-lighting rooms.
Choosing appliances and materials
Shopping can be the most exciting part of any renovation, especially as more retailers woo you with sales and closeouts. But buying solely on price can cost you more in the long run. Our interactive kitchen-planning tool offers an overview of the pros and cons of various materials and appliances so that you can pick the right options for your home. Among the highlights:
That inverse scenario between housing sales and remodeling spending makes sense: A slowing market and rising interest rates make it harder to trade up and more inviting to better feather the nest you already have.
On the downside, tougher, pricier credit can mean less money to create your dream kitchen or bath. What's more, you may not get as much back for even the best remodeling investments if you sell your home. That's why getting the right financing and choosing the best pros and products are especially critical now.
Financing a remodel
Even before you start, get a handle on which improvements will ultimately return the most on your investment when it comes time to sell. For a kitchen remodel, the free Kitchen Remodel Cost Calculator, provided by RSMeans, will help you budget your makeover, whether it involves the basics or fancier features.
Hiring a contractor and managing the project
There are a number of ways to ensure that your remodel goes smoothly. Chief among them is to properly research and hire a reliable professional and have that person map out the project in writing, which will help you stay on budget. During the planning stages, avoid major goofs that can ruin a remodel, such as not incorporating enough storage or under-lighting rooms.
Choosing appliances and materials
Shopping can be the most exciting part of any renovation, especially as more retailers woo you with sales and closeouts. But buying solely on price can cost you more in the long run. Our interactive kitchen-planning tool offers an overview of the pros and cons of various materials and appliances so that you can pick the right options for your home. Among the highlights:
- Appliances. Many refrigerators hold only 70 to 80 percent of their claimed capacity. What's more, many conventional ranges perform as well as pro-style models and cost thousands less. Our Ratings (available to subscribers) of these and other appliances, including cooktops, dishwashers, and wall ovens, lay out a range of stylish performers that fit your kitchen-remodeling budget.
- Bathrooms. When it comes to bathroom sinks, our testers found that trendy glass can be tougher than plain old porcelain. Thinking about one of those rain-shower showerheads? Beware: Many can be surprisingly wimpy. If your existing water pressure is low, ask a plumber whether adjusting or replacing your pressure regulator might help with water delivery. Toilets also vary widely in performance. While pressure-assisted models deliver the most oomph overall, some new gravity models come close (see our Ratings, available to subscribers).
- Cabinets. Solid-wood doors and drawers with dovetail joinery are features to look for in new cabinets. But what if you've already got sturdy units and just want to give your kitchen a face-lift? Consider refinishing and refacing.
- Countertops. Engineered stone, a composite of stone, resin, and pigments, is giving granite—Mother Nature's toughest countertop offering—a run for its money. Our Ratings (available to subscribers) detail how it stacked up against other materials, including stainless steel, laminates, and limestone.
- Flooring. Our latest tested products include prefinished solid wood, engineered wood, plastic laminates, vinyl, and linoleum. Our Ratings (available to subscribers) show you why solid wood might not be your best choice for a high-traffic kitchen.
