Back to the basics in home improvements

Renovations on the rise in 2010

The poor economy and housing market have homeowners saying out with elaborate home makeovers and high-end finishes, and in with more modest projects that increase the live-in value of a home.

Unlike 2009, when many homeowners were sticking strictly with preventative maintenance projects — roof and window repairs in particular — or foregoing repairs and renovations altogether, so far, 2010 has homeowners’ pent-up demand for more substantial home improvements coming into fruition, albeit with more modest material choices than when the market was still booming.

“The main thing we’re seeing are necessary improvements. … In the winter we were doing a lot of insulation because people want to save money on their heating and cooling bills,” said 1st Choice Home Improvement President Steve Noble, noting that more cosmetic updates, such as new siding, are still few and far between.

After minimal activity last year, local contractors are optimistic that 2010 is going to be a good year for home improvements.

“Without a doubt, people are spending more this year,” said Father and Son Construction President Mat Vivona Jr. “The biggest difference is that now people are going for room additions, and before, they were shying away from those types of projects.”

That’s due, in part, to banks lowering credit lines and tightening up the terms of home improvement loans after the housing crash of 2007-08.

“A few years ago, we were doing a lot of combo jobs — windows and siding at the same time — but then the banks started lowering credit lines. … People wanted to get work done, but the banks were saying no,” Noble said, adding that the possibility of more jobs being lost in the auto industry last year also played a part in people holding off on major home improvements.

“Customers are more at ease this year than last year. This year, they know where they stand — there’s no longer that anticipation of whether they’ll lose their job or not,” he said.

The banks are also starting to open up lines of credit, said Vivona, and more people are qualifying for financing again.

“We’re getting an increase in calls for larger things, like kitchen and bathroom remodels — we’ve been doing a whole lot of bathrooms lately. And now that the weather is getting nicer, a lot more people are looking into getting new decks and concrete patios compared to last year, as well,” Vivona said, noting that higher-end upgrades, like Jacuzzi tubs, are still on the outs for the most part.

That doesn’t mean people are opting for the cheapest products, said Noble; rather, most people are choosing high-quality mid-grade products — particularly those that qualify for tax credits.

Some manufacturers, like Simonton Windows, are even rolling out their own incentives, said Vivona. “Simonton Windows, which won the J.D. Power award for best vinyl replacement window — it’s a wonderful window — will pay up to $150 toward the homeowner’s tax preparation work.”

Just about the only segment of the market not benefiting from tax credits or doing major home renovations are those selling their homes, said Realtor Mike Sher, a short sale specialist with Max Broock Realtors in Bloomfield Hills.

The only people selling right now are those who have to, Sher said, and many of those sellers’ home values are underwater: “The premise I’m coming in with is that they need to get out as unscathed as possible.”

That’s why they’re sticking to the absolute basics when it comes to home repairs and updates.

“They’re painting, which is a good, inexpensive solution to update a home. … They’re doing more patchwork and leaving more repairs for the next buyer,” he said, noting that buyers are still getting great deals, as home values have dropped 30-40 percent pretty much across the board since the crash.

However, that doesn’t mean sellers aren’t doing things to make their homes more attractive — they’re still cleaning, de-cluttering and staging the home to show at its best.

“They’re buying things to make the room look nicer that they can take with them — rugs, decorative things like a wall hanging or painting and so forth. Instead of crown molding, they are buying a new armoire they can take with them, or getting a new flat-screen TV, as opposed to new countertops,” said Sher, who advises talking with an agent to get a list of inexpensive recommendations for making a home stand out and sell faster.

As for hiring a contractor, it’s always wise to not only check out the company’s standing with the Better Business Bureau, but also to make sure the business is licensed and insured, as well as check references.

Father and Son can be reached at (800) 380-8888 or via www.father-son-const.com; 1st Choice Home Improvement at (888) 646-0111 or via www.mifirstchoice.com; and Sher at (248) 644-4700, ext. 242, or via http://mikerealtor.com.