Not every builder can turn to remodeling, but for those who want to be remodelers, it can mean two very important things. First, there is extra cash flow as you help people renovate their existing homes to make them more comfortable for their current needs. Second, there is a new market share to be garnered.
In times when new construction slows and people aren’t buying new homes as rapidly as they once were, remodeling takes on a new importance. People look to improve what they already have. They may want a new bedroom or bath. They may want a larger kitchen or family room. Maybe they need more storage. Perhaps they want to convert some exiting “bonus” or “flex” space in actual living areas.
Remodeling can run from being a handyman all the way to a custom home builder. It can involve changing out a few fixtures or replacing a door to tearing down or gutting an existence home and rebuilding it.
There’s always going to be a demand for remodeling because people are going to want to make modifications to their homes – and not everyone is capable of or even interested in making those changes themselves. Many people like the home they have – especially after a few modifications are completed – and they’re not interested in moving.
Another big factor driving the remodeling business today is the concept of aging in place. People are much more interested in remaining in their current homes long-term, and now they need modifications and other improvements to accommodate various physical limitations and restrictions.
Also, people are having adult children or elderly parents move in with them - or both (the so called "Oreo" family) so they need modified or extra living space - especially bedroom and bathroom areas.
Some people are trying to sell their current home in order to buy another, and a home inspector has pointed out various deficiencies or inadequacies that they need to eliminate - or they want to modernize a kitchen or bath to make the home more salable.
Remodeling can be a very good business decision for a builder, but it takes a different focus and commitment than new construction.
* For more information about my consulting and coaching services visit my website stevehoffacker.com. I also maintain a blog on the real estate network Active Rain, and you can join this site and begin participating in the fun and networking opportunities by clicking here.