Thursday, May 21, 2009

Deals on Contractors?

Getting great deals on contractors is a big, recent story. With so many people unable to spend money on projects the one's who do seem to have their choice about who to go to. At least that is the story. Once it was hard even getting contractors to give quote - now people are getting several. Picking and choosing the contractors for the work they want done - and contractors eager to take any job so they do not have to layoff more employees. This is the latest story from USA Today in an article titled Those willing to spend can find great remodeling deals. Interesting article. Our favorite part is where the contractor fit his price to the amount of the home equity loan the client was able to get - very, very interesting. Well, let's take a look at the article -

That's driven savings for those who renovate. Despite some signs of a bottoming in the housing market, contractors coast to coast say they're bidding jobs for less than they would have two years ago. Lower costs for material, such as lumber, help. But mostly, contractors are paying less for labor, or they're cutting their profits.


Nationwide, the home improvement market is expected to shrink 12% this year to $217 billion for owner-occupied properties. That's after a 10% decline last year, says Harvard University's Joint Center for Housing Studies.


Craig Durosko, president of 50-employee SunDesign Remodeling Specialists in Burke, Va., had one client who needed to borrow $125,000 for a remodeling job. He could only get $100,000 because the house didn't appraise high enough. Sun Design tweaked the client's payment schedule so that the job could be done as planned.


New Jersey-based landscape architect Chris Cipriano, of Cipriano Landscape Design, says he recently bid on a pool job. The previous contractor was hired to put in a 700-square-foot pool but made it 550 square feet, Cipriano says.

Cipriano does landscaping and pools. Competition for jobs has led some landscapers to claim that they also do pools, "even if they've never built one," he says.

Pretty interesting article about remodeling. That was a favorite expense in the HELOC crowd. The ATM could allow for master suites, additions, constant remodeling of kitchens, etc. etc.

It would be really interesting if the article had more of a geographical spin on it - since nationally some areas are basically in a depression while others are just feeling a pinch.

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