Home renovation is a very important service in the United States. Although it tends to be in higher demand during strong economic cycles, it is in need throughout the year. Homeowners spent about $144 billion a year on these services in 2014. According to statements from people working in the profession, this figure has continued to increase even more in recent years.
There are a wide range of options for people that want to renovate their homes. They might use premium home renovation services. They could also go with discount options or even try to complete the renovations on their own. Unfortunately, there isn’t a one-size fits all approach to choosing the right home renovation service. The best option is going to depend on their situation.
If you have a large cash reserve, then you can probably afford to spend a lot of money on high-level renovation services. Otherwise, you are going to need to look for more cost-effective options. Here are some ideas that you should consider if you are trying to renovate your home on a more limited budget.
Look for contractors that are more desperate for work
Some renovation experts are hungrier than others. College students, people that have been unemployed for long periods of time and groups of undocumented immigrants tend to be more desperate for work. You can probably get a decent discount by outsourcing to these trips. However, you should still do your due diligence before hiring them. You often get what you pay for, but you will find some very talented renovation experts that are desperate for work and willing to work for a lower rate. A lot of contractors hire immigrants, because they are hard working and willing to do the job for a much lower rate.
Time your renovation projects for a recession
The economy has been pretty strong for the past two years. However, there is a good chance that a recession will occur in the near future. The economy is cyclical, which means that it should happen within a year or two.
It might be a good idea to wait until the next recession before you try to get your renovation work done. Contractors tend to have a lot less work when the economy turns south, so they will often lower their rates accordingly. Sometimes they will even just try to break even on projects just to amortize their equipment.
Be smart about prioritizing your renovation projects
You probably have a list of renovation projects that you would like to complete. Unfortunately, it is unlikely that you can get around to everything on your list. You will need to make a list of projects that you want to focus on. You may want to learn how to build a shed roof, because this can be a good way to cut costs long-term.
If finances are your primary consideration, you might not want to focus on doing the projects that add the most to your property value first. This may sound counterintuitive at first, but it makes a lot more sense when you think about it. Keep in mind that your property taxes are going to increase as your property value rises. If you focus on projects that only increase the value of your property by improving yes statics or adding curb appeal, then you might be unnecessarily causing your property taxes to rise long term. Unless you plan on selling your property within the next year or two, this is not the most financially astute decision.
Instead, you should focus on making property changes that I like me too save you money in the long run. Focus on making changes that prevent future repairs or help you lower your energy costs. This is the most prudent way to prioritize home renovations if you’re financial woes are your primary concern.