There has been a lot of talk in the news this week about the idea of a second stimulus program focused on job creation. One key aspect of this program would be an incentive for people to spend money on energy efficient upgrades to their home.
In my opinion, so far, so good. I believe that up to this point much of the government action during this recession has been to benefit large businesses and the financial industry with very little assistance for normal folks and small business. Considering how dependent our country is on small businesses and consumer spending, this has seemed to me to have been a major missed opportunity to inject some life into the economy.... get help to small businesses, we make jobs!
At any rate, the rough outline of this program as I have read about it in a variety of online locations is this:
Homeowners get a 50% credit on spending on certain energy efficient upgrades to their home up to a $12,000 credit (on a total purchase of $24,000). Included purchases would be things like energy efficient appliances, heating and cooling systems, windows and insulation.
This program seems to be to be a good idea for several reasons.
1. It builds value in homes. If homeowners continue to invest in their homes on a large scale, we will see a faster turnaround in the real estate market.
2. It creates real jobs. This program will create work at the installation level as home improvement companies do the work. It will create factory jobs as the material is produced, it will create jobs for people to go out and estimate and specify the work.
3. It dovetails well with the need for better energy efficiency in the United States, allowing us, as a nation, to work on two problems (unemployment and energy) at the same time.
I do have two specific concerns that I believe will greatly impact the effectiveness of this program.
First, the government must find a better way to get the funds for this out in the hands of consumers than what happened with "cash for clunkers" Remodelers by and large will not be able to foot the bill for large amounts of remodeling work while waiting months for repayment by the government. Perhaps allowing this to be a refundable credit.
Second, the requirements for participation must be kept simple and the record keeping must not be overly onerous. As I have mentioned in previous posts, I have passed two very rigid training and testing courses for home efficiency, BPI and Resnet. While I believe that these classes were beneficial, I do not think this type of certification should be required to participate in the program, I think this would both significantly slow down the implementation of this, but I also think it would drastically reduce the companies that would be available to participate.
My solution to making sure that homeowners get a good efficiency bang for their buck is to set specific material requirements and as long as those materials are used correctly and installed correctly, then this should qualify. If there are concerns about the effect an incorrect installation would have on efficiency, then require the contractor to be certified on that particular product by the manufacturer.
The concept of "Cash for Caulkers" is a very good idea, I only hope it is allowed to develop in a way to maximize benefit to the economy. Companies like Legacy Remodeling would hire many additional workers if we could find the work for them to do. Give us that opportunity.
Thursday, December 10, 2009
Tuesday, December 8, 2009
The Myth of Manufacturer Direct
Today's topic in the Home Base remodeling blog is those retailers who represent one particular manufacture. In most cases these are companies that have a retail division and which also manufacture the product they sell, although there are examples of businesses that utilize a franchise model as well and are are therefore tightly linked to the manufacturer of the product they sell.
In most cases, these companies will claim to be able to offer a better price, due to the fact that the retailer is getting their product directly from the plant. However a closer look would reveal that this approach may not be the best for the customer.
First of all, the idea of a lower price due to the relationship between the retail operation and the plant is largely a myth. Most large remodeling companies, like Legacy Remodeling, are able to purchase materials directly from manufacturer's. This means that in terms of pricing, there will be a fairly even playing field for the price of comparable materials.
However, pricing is not the only important consideration when selecting the right product and company for your home. When looked at from this angle, it becomes apparent that it is more advantageous to deal with a specialty remodeler. A good knowledgeable remodeling company will be able to offer several different products from different manufacturer's and through working with the homeowner, help them in selecting the right one for them.
A specialty remodeling company will be able to find the product that is the best fit for a homeowner, while the manufacturer outlet is beholden to one company and can not offer the wide selection of products. The manufacturer direct retailer must tell you that their product is best, because it is all they can offer. Would you really want to try to fit a square peg into a round hole, or would you want to pick the product that is really right for your home.
These comp
In most cases, these companies will claim to be able to offer a better price, due to the fact that the retailer is getting their product directly from the plant. However a closer look would reveal that this approach may not be the best for the customer.
First of all, the idea of a lower price due to the relationship between the retail operation and the plant is largely a myth. Most large remodeling companies, like Legacy Remodeling, are able to purchase materials directly from manufacturer's. This means that in terms of pricing, there will be a fairly even playing field for the price of comparable materials.
However, pricing is not the only important consideration when selecting the right product and company for your home. When looked at from this angle, it becomes apparent that it is more advantageous to deal with a specialty remodeler. A good knowledgeable remodeling company will be able to offer several different products from different manufacturer's and through working with the homeowner, help them in selecting the right one for them.
A specialty remodeling company will be able to find the product that is the best fit for a homeowner, while the manufacturer outlet is beholden to one company and can not offer the wide selection of products. The manufacturer direct retailer must tell you that their product is best, because it is all they can offer. Would you really want to try to fit a square peg into a round hole, or would you want to pick the product that is really right for your home.
These comp
EPA Lead Paint Requirements, Part 3
This is my third posting in a series about the upcoming federal rules regarding lead-based paint as it relates to contractors. As you are aware the upcoming EPA requirements regarding lead-based paint are an effort to mitigate the risks that lead can cause to humans. These regulations will impose new informational, training, job site, and record keeping requirements on contractors who work in pre-1978 homes.
While I agree that limiting this risk is an admirable goal, I believe that the way that it is being done is a heavy handed needless federal intervention in small business. Further, I think that these requirements will have numerous drawbacks and will ultimately have negative, unintended consequences.
In no particular order I see 3 primary problems with these regulations. First, I believe that these rules will be difficult to enforce fairly and evenly, something that I think is a problem when you consider that the fines for violation can reach $32,500 per day. There are hundreds of thousands of contractors in this country who perform types of work that could at times involved lead based paint issues. This includes general contractors, painters, window companies and numerous others. The vast majority of these companies are sole proprietorship, one man operations. These companies often do not have a physical address beyond the owners home. This type of company is very difficult to find, let alone audit for compliance. Furthermore, when you consider the costs that will be associated with compliance, I believe that many of these types of operations will choose not to comply and simply roll the dice that the EPA will not find them. In most cases I believe that they will be right.
Conversely, companies like Legacy Remodeling and other larger, more legitimate companies will be in a position where they really have no choice but to comply. We advertise, we have a physical office and logo'd vehicles. In short, the more legitimate companies make a bigger target and therefore will comply because to not do so would be an unwise risk. This unfortunately will put legitimate businesses at a disadvantage as we have to add another layer to our cost structure. This is a problem for many reasons, for one, it will slow our growth and reduce the rate at which we are able to hire. If this holds true at other companies that are similar to Legacy, this will slow down a segment of the economy just as our country is trying to recover from recession.
My second main problem with this set of regulations in the cost that it will impose on companies working in the remodeling field. This starts with the cost of training. At my business I expect the initial round of training will cost us between $3,000 and $5,000. We will then need to do periodic supplemental training due to turnover in our workforce.
Beyond the initial training, we will need to account for time taken to perform the required tasks for compliance. Whether this is posting the work area ahead of time, setting up containment, post installation cleanup or testing, this will take man hours. Whether I will have our installers do this work or I hire someone specifically for this, there is a cost associated with it that must be covered.
The final cost component is the material that is needed to implement this properly.... basically sheets and sheets and sheets of plastic.
Once you figure these costs into a businesses plan, it becomes apparent that in order to comply businesses will have to raise prices or allow their margins to shrink. Both of which are unattractive options considering the recent economic climate. As many clients are unwilling to spend more right right now, I believe that this will result in a slower recovery for the home improvement industry.
Lastly this program is in my opinion VERY un-environmentally friendly. Contractors are required to use literally hundreds of square yards of plastic sheeting to protect the ground on an average size gutter replacement (probably doubling the price for that project). Similar requirements exist for window replacement and many other activities. Production of this plastic sheeting requires the use of petroleum and produces carbon. This material must be thrown away after the project because it is presumably toxic... this will only further fill landfills with a material that will take tens of thousands of years to breakdown.
As a company that prides itself on being "green" this last part is down right offensive.
From my perspective there is a worthy goal here in reducing human exposure to lead-based paint. However the EPA program about to come into place is not the best way. I believe that it would be appropriate to delay the implementation of these requirements as this program is re-evaluated with an eye towards its effect on employment, as well as ensuring we don't generate a new environmental problem while trying to solve an old one.
While I agree that limiting this risk is an admirable goal, I believe that the way that it is being done is a heavy handed needless federal intervention in small business. Further, I think that these requirements will have numerous drawbacks and will ultimately have negative, unintended consequences.
In no particular order I see 3 primary problems with these regulations. First, I believe that these rules will be difficult to enforce fairly and evenly, something that I think is a problem when you consider that the fines for violation can reach $32,500 per day. There are hundreds of thousands of contractors in this country who perform types of work that could at times involved lead based paint issues. This includes general contractors, painters, window companies and numerous others. The vast majority of these companies are sole proprietorship, one man operations. These companies often do not have a physical address beyond the owners home. This type of company is very difficult to find, let alone audit for compliance. Furthermore, when you consider the costs that will be associated with compliance, I believe that many of these types of operations will choose not to comply and simply roll the dice that the EPA will not find them. In most cases I believe that they will be right.
Conversely, companies like Legacy Remodeling and other larger, more legitimate companies will be in a position where they really have no choice but to comply. We advertise, we have a physical office and logo'd vehicles. In short, the more legitimate companies make a bigger target and therefore will comply because to not do so would be an unwise risk. This unfortunately will put legitimate businesses at a disadvantage as we have to add another layer to our cost structure. This is a problem for many reasons, for one, it will slow our growth and reduce the rate at which we are able to hire. If this holds true at other companies that are similar to Legacy, this will slow down a segment of the economy just as our country is trying to recover from recession.
My second main problem with this set of regulations in the cost that it will impose on companies working in the remodeling field. This starts with the cost of training. At my business I expect the initial round of training will cost us between $3,000 and $5,000. We will then need to do periodic supplemental training due to turnover in our workforce.
Beyond the initial training, we will need to account for time taken to perform the required tasks for compliance. Whether this is posting the work area ahead of time, setting up containment, post installation cleanup or testing, this will take man hours. Whether I will have our installers do this work or I hire someone specifically for this, there is a cost associated with it that must be covered.
The final cost component is the material that is needed to implement this properly.... basically sheets and sheets and sheets of plastic.
Once you figure these costs into a businesses plan, it becomes apparent that in order to comply businesses will have to raise prices or allow their margins to shrink. Both of which are unattractive options considering the recent economic climate. As many clients are unwilling to spend more right right now, I believe that this will result in a slower recovery for the home improvement industry.
Lastly this program is in my opinion VERY un-environmentally friendly. Contractors are required to use literally hundreds of square yards of plastic sheeting to protect the ground on an average size gutter replacement (probably doubling the price for that project). Similar requirements exist for window replacement and many other activities. Production of this plastic sheeting requires the use of petroleum and produces carbon. This material must be thrown away after the project because it is presumably toxic... this will only further fill landfills with a material that will take tens of thousands of years to breakdown.
As a company that prides itself on being "green" this last part is down right offensive.
From my perspective there is a worthy goal here in reducing human exposure to lead-based paint. However the EPA program about to come into place is not the best way. I believe that it would be appropriate to delay the implementation of these requirements as this program is re-evaluated with an eye towards its effect on employment, as well as ensuring we don't generate a new environmental problem while trying to solve an old one.
Monday, December 7, 2009
Legacy Remodeling Q&A
My business, Legacy Remodeling, sends out a newsletter to customers called the Remodeling Report. Included in this are some nice informational articles regarding home improvements. One of these segments is a Q&A segment where I answer a question posed by a customer. I figured since the information covered is good stuff for homeowners to know about that I would post it here. If you are interested in receiving the Remodeling Report, please go to our website and sign up. Thanks!
Q: Dear Jeff,
My wife and I are interested in getting our basement redone so that we can use it as a playroom for our girls. However, we have some water damage. Can we still redo the basement?
Thanks,
Rob, Wexford
A: Asking about water damage is one of the most common questions about the basement finishing system, Rob, and one that rings especially true in the Pittsburgh area.
By nature, your basement is the dampest area of your home, so dealing with water damage and flooding issues is something that many people face. Refinishing your basement will definitely be an option, but if you have extensive damage, working with a basement waterproofing company should be your first step. A waterproofing company will be able to correct any existing problems and ensure that no water can penetrate the basement in the future.
Once your basement is properly waterproofed, you'll be ready to move forward with refinishing it. Because of your basement's previous history with water damage, it's important to get a basement system that is mold and mildew resistant. Unfortunately, drywall, while fine in other parts of the house, can be a disaster in the basement. Basically, drywall can be a feeding ground for mold because it is an organic material. That's why it's important to find a basement finishing system that uses materials that will work with the basement environment, such as fiberglass. You can view a video of Bob Vila talking about this here.
While the process of getting your basement redone can be tedious, it's definitely worth the payoff in the end - increasing both your living space and property value, while decreasing allergens, mold, and most importantly...those winter heating bills!
If you're unsure if you need to have your basement waterproofed or not before you go through with refinishing it, give us a call and we'd be happy to help.
-Jeff
Q: Dear Jeff,
My wife and I are interested in getting our basement redone so that we can use it as a playroom for our girls. However, we have some water damage. Can we still redo the basement?
Thanks,
Rob, Wexford
A: Asking about water damage is one of the most common questions about the basement finishing system, Rob, and one that rings especially true in the Pittsburgh area.
By nature, your basement is the dampest area of your home, so dealing with water damage and flooding issues is something that many people face. Refinishing your basement will definitely be an option, but if you have extensive damage, working with a basement waterproofing company should be your first step. A waterproofing company will be able to correct any existing problems and ensure that no water can penetrate the basement in the future.
Once your basement is properly waterproofed, you'll be ready to move forward with refinishing it. Because of your basement's previous history with water damage, it's important to get a basement system that is mold and mildew resistant. Unfortunately, drywall, while fine in other parts of the house, can be a disaster in the basement. Basically, drywall can be a feeding ground for mold because it is an organic material. That's why it's important to find a basement finishing system that uses materials that will work with the basement environment, such as fiberglass. You can view a video of Bob Vila talking about this here.
While the process of getting your basement redone can be tedious, it's definitely worth the payoff in the end - increasing both your living space and property value, while decreasing allergens, mold, and most importantly...those winter heating bills!
If you're unsure if you need to have your basement waterproofed or not before you go through with refinishing it, give us a call and we'd be happy to help.
-Jeff
EPA Lead Paint Requirements, Part 2
In my previous blog entry I laid out the backround around the EPA's current lead based paint program. In this entry I will talk about some of the specific requirements.
Starting in April of 2010, there will be numerous requirements placed on contractors who perform work in homes built prior to 1978.
Regardless of whether you are working inside or outside of an home, these requirements must be met for nearly any project where the renovation will disturb more than 6 sq. ft. of surface area in a pre-1978 structure.
These requirements include testing for the presence of lead-based paint in the work area. If there is no lead found in a home, then there is no need to continue with the implementation of the protocols.
If however, lead is confirmed to be present on an interior project the contractor is then required to post warning signs in the area around the worksite, use extensive plastic sheeting to seal off work area's, remove or seal in plastic furnishings or other items in a room, cover the floor, and implement thorough cleaning requirements including the wiping down of all walls, use of HEPA vacuum equipment and proper disposal of all plastic sheeting. If the work is done on the outside of the home, the regulations can become even more onerous, including covering the outside ground with plastic sheeting a minimum of ten feet around the work area. In certain circumstances, vertical containment can be required. Once a job is done and the cleanup properly carried out, there are record keeping requirements that must be met.
In the event that a contractor fails to properly adhere to this rule, the EPA can issue fines up to $32,500 per day. Ouch...
As mentioned in part one of this blog, I have numerous concerns regarding this rule which I will address in my next blog entry. These include the ability to fairly and evenly enforce this, the costs of implementation and the environmental aspect of these requirements.
Starting in April of 2010, there will be numerous requirements placed on contractors who perform work in homes built prior to 1978.
Regardless of whether you are working inside or outside of an home, these requirements must be met for nearly any project where the renovation will disturb more than 6 sq. ft. of surface area in a pre-1978 structure.
These requirements include testing for the presence of lead-based paint in the work area. If there is no lead found in a home, then there is no need to continue with the implementation of the protocols.
If however, lead is confirmed to be present on an interior project the contractor is then required to post warning signs in the area around the worksite, use extensive plastic sheeting to seal off work area's, remove or seal in plastic furnishings or other items in a room, cover the floor, and implement thorough cleaning requirements including the wiping down of all walls, use of HEPA vacuum equipment and proper disposal of all plastic sheeting. If the work is done on the outside of the home, the regulations can become even more onerous, including covering the outside ground with plastic sheeting a minimum of ten feet around the work area. In certain circumstances, vertical containment can be required. Once a job is done and the cleanup properly carried out, there are record keeping requirements that must be met.
In the event that a contractor fails to properly adhere to this rule, the EPA can issue fines up to $32,500 per day. Ouch...
As mentioned in part one of this blog, I have numerous concerns regarding this rule which I will address in my next blog entry. These include the ability to fairly and evenly enforce this, the costs of implementation and the environmental aspect of these requirements.
Saturday, December 5, 2009
EPA Lead Paint Requirements, Part 1
I added a "part 1" to the title of this blog, because I expect will have several entries regarding this subject. There are a lot of aspects to these new requirements and an even greater number of consequences. For that reason it would be difficult to cover all of it in a single blog entry without running many pages.
As many of you may or may not be aware, on April 22, 2010, new EPA regulations go into effect with regards to remodeling work in structures built before 1978. This is due to the fact that these building could reasonable be suspected of having had lead paint used in or on them at some point prior to the banning of lead based paint.
The presence of lead has been linked with developmental problems in people, particularly small children. For that reason, lead has been phased out of many things over the past 30 years. Unfortunately the lead that was used in paint still exists in many structures under layers of newer paint or other material like tile or wall board. When area's such as this are disturbed it can generate paint chips and dust with lead in them.
In order to mitigate this risk the Federal Government, through the EPA, has implemented a program of required actions when working on homes, child care facilities and schools built prior to 1978. This program is known as the EPA's Lead-Based Paint Renovation, Repair and Painting Program.
The first step in this program was informational. For the past several years, remodelors, real estate agents and others have been required to distribute an informational piece to customers when they were dealing with pre-1978 properties. So far, so good. My company, Legacy Remodeling , has been doing this for several years. I believe that this is good information to give to homeowners about a possible health hazard in their home.
However, as we get closer to the April 22 deadline for compliance on job sites, I am increasingly concerned by what appears to be very heavy handed government regulations. These regulations will raise the risk of fines for companies that fail to comply, will raise prices for homeowners due to the required materials, will be difficult to enforce fairly and consistently, and is contrary to the entire idea of "green."
I am going to stop here, but will examine these four area's of concern in my next entry.
As many of you may or may not be aware, on April 22, 2010, new EPA regulations go into effect with regards to remodeling work in structures built before 1978. This is due to the fact that these building could reasonable be suspected of having had lead paint used in or on them at some point prior to the banning of lead based paint.
The presence of lead has been linked with developmental problems in people, particularly small children. For that reason, lead has been phased out of many things over the past 30 years. Unfortunately the lead that was used in paint still exists in many structures under layers of newer paint or other material like tile or wall board. When area's such as this are disturbed it can generate paint chips and dust with lead in them.
In order to mitigate this risk the Federal Government, through the EPA, has implemented a program of required actions when working on homes, child care facilities and schools built prior to 1978. This program is known as the EPA's Lead-Based Paint Renovation, Repair and Painting Program.
The first step in this program was informational. For the past several years, remodelors, real estate agents and others have been required to distribute an informational piece to customers when they were dealing with pre-1978 properties. So far, so good. My company, Legacy Remodeling , has been doing this for several years. I believe that this is good information to give to homeowners about a possible health hazard in their home.
However, as we get closer to the April 22 deadline for compliance on job sites, I am increasingly concerned by what appears to be very heavy handed government regulations. These regulations will raise the risk of fines for companies that fail to comply, will raise prices for homeowners due to the required materials, will be difficult to enforce fairly and consistently, and is contrary to the entire idea of "green."
I am going to stop here, but will examine these four area's of concern in my next entry.
Thursday, December 3, 2009
Energy Efficiency in Home Improvements
In today's posting, I wanted to discuss the idea of energy efficient home improvements. There has been a lot of talk over the past year about this topic and there is a lot of government money going into programs to support home weatherization efforts.
Earlier this year, I spent two weeks attending courses in home energy efficiency and weatherization. The first of these courses was a RESNET certification course which I successfully completed. RESNET stands for residential energy services network. The second course was a certification called BPI (Building Performance Institute) which I also completed. Without getting into all of the details, these courses prepared me to work as a home energy auditor/rater. This knowledge, combined with the proper equipment would allow me to model a customers home in order to compare it to an ideal home and then make suggestions for the homeowner as to how they could best improve the efficiency of their home.
These classes taught me a lot about the science of home efficiency and about what goes into controlling energy flow into and out of a home. I took away from these classes an ability to identify the most cost efficient ways to improve a homes efficiency and to maximize the homeowners ROI in an absolute dollar sense (X number of dollars spent will save Y dollars in energy). In many cases the first thing a homeowner can do is simple air sealing and insulation which can be inexpensive and effective.
However, what I think was missed in these programs was the benefit of other, typically more expensive remodeling projects such as insulated windows or solid core insulated vinyl siding. My sense was that this was due to a much lower direct return on that investment when looking only at energy savings.
When examined only from the perspective of an investment return via energy efficiency, is understandable to exclude expensive projects with a longer payback period. In my opinion however, this is a very narrow view. According to the most recent Cost Vs. Value report in Qualified Remodeler magazine a homeowner can expect to recoup up to 70-80% of the value of an upscale window or siding project when they later sell their home and that is excluding any possible appreciation in the value of their home in the meantime. Additionally the homeowner will experience the benefit of having remodeled their home... i.e. enjoying their nice new windows or attractive vinyl siding. Lastly, by installing new products the homeowner will likely be able to save additional money through avoided maintenance (no scraping and painting that old siding).
Considering the homeowner will be able to put a large part of this kind of an investment back into their pocket, I believe there is a very favorable argument for encouraging homeowners to put money into these improvements. The current federal energy policy strongly supports the lower cost improvements (air sealing). However I believe that it would be appropriate to continue and possibly even expand the current Energy Efficiency Tax Credit which is the only federal incentive that is currently being offered to help support the installation of certain energy efficient appliances and home improvement products (windows, furnaces, etc.).
This would do several things. First, it would allow us to maximize home energy efficiency by not only picking the low hanging fruit. Second, it would allow people to continue to build equity in their homes, something that durable long term improvements will do, but that air sealing will not. Third, this would contribute to economic recovery. America needs it factories at work. We need to be making efficient refrigerators and windows. These create good paying jobs in ways that a lot of the more simple energy retrofits simply do not. By encouraging all types of energy efficient home remodeling, the government can achieve the double benefit of maximizing both the efficiency aspect of this stimulus as well as maximizing other positive aspects of the stimulus such as increasing factory output.
Earlier this year, I spent two weeks attending courses in home energy efficiency and weatherization. The first of these courses was a RESNET certification course which I successfully completed. RESNET stands for residential energy services network. The second course was a certification called BPI (Building Performance Institute) which I also completed. Without getting into all of the details, these courses prepared me to work as a home energy auditor/rater. This knowledge, combined with the proper equipment would allow me to model a customers home in order to compare it to an ideal home and then make suggestions for the homeowner as to how they could best improve the efficiency of their home.
These classes taught me a lot about the science of home efficiency and about what goes into controlling energy flow into and out of a home. I took away from these classes an ability to identify the most cost efficient ways to improve a homes efficiency and to maximize the homeowners ROI in an absolute dollar sense (X number of dollars spent will save Y dollars in energy). In many cases the first thing a homeowner can do is simple air sealing and insulation which can be inexpensive and effective.
However, what I think was missed in these programs was the benefit of other, typically more expensive remodeling projects such as insulated windows or solid core insulated vinyl siding. My sense was that this was due to a much lower direct return on that investment when looking only at energy savings.
When examined only from the perspective of an investment return via energy efficiency, is understandable to exclude expensive projects with a longer payback period. In my opinion however, this is a very narrow view. According to the most recent Cost Vs. Value report in Qualified Remodeler magazine a homeowner can expect to recoup up to 70-80% of the value of an upscale window or siding project when they later sell their home and that is excluding any possible appreciation in the value of their home in the meantime. Additionally the homeowner will experience the benefit of having remodeled their home... i.e. enjoying their nice new windows or attractive vinyl siding. Lastly, by installing new products the homeowner will likely be able to save additional money through avoided maintenance (no scraping and painting that old siding).
Considering the homeowner will be able to put a large part of this kind of an investment back into their pocket, I believe there is a very favorable argument for encouraging homeowners to put money into these improvements. The current federal energy policy strongly supports the lower cost improvements (air sealing). However I believe that it would be appropriate to continue and possibly even expand the current Energy Efficiency Tax Credit which is the only federal incentive that is currently being offered to help support the installation of certain energy efficient appliances and home improvement products (windows, furnaces, etc.).
This would do several things. First, it would allow us to maximize home energy efficiency by not only picking the low hanging fruit. Second, it would allow people to continue to build equity in their homes, something that durable long term improvements will do, but that air sealing will not. Third, this would contribute to economic recovery. America needs it factories at work. We need to be making efficient refrigerators and windows. These create good paying jobs in ways that a lot of the more simple energy retrofits simply do not. By encouraging all types of energy efficient home remodeling, the government can achieve the double benefit of maximizing both the efficiency aspect of this stimulus as well as maximizing other positive aspects of the stimulus such as increasing factory output.
Wednesday, December 2, 2009
Home Improvements and the Holiday Season
Welcome back to the Home Base. A blog about Home Improvements written by me, Jeff Moeslein, owner of Legacy Remodeling, I have worked in this industry for over a decade and write this blog as a way to share my views of this business as well as helpful information with homeowners.
The winter months of December and January are typically slow time for the remodeling industry. Many smaller companies simply shut down, while larger ones resign them selves to the fact that those two months are essentially an opportunity to prepare for Spring. From the homeowners perspective this type of work often gets forgotten at this time of year, what with holidays and gifts and family and good food, there is little time left to think about getting new windows, let alone to do it when its 30 degree's outside.
This however does not need to be the case. Both homeowners and home improvement companies can use this time of year to get meaningful work done.
For a customer who is shopping for remodeling projects, December can be a time that is full of opportunity. For most of the year, the saying "you get what you pay for" holds true. Better companies and better products cost more and with good reason. However in December, even the really well regarded remodeling companies are generally slower than they would like to be. This opens the door to negotiate what is probably the best deal you will get all year long. Many home improvement companies run low on work by the end of the winter and are therefore anxiously awaiting spring. With this in mind, you may find companies willing to negotiate much better rates on projects than they would when they are busier. If you give a company the opportunity to add some work to their schedule in December, you will find that most will work very hard to find a way to make the project work for both you and them.
This opportunity for a better price doubles when you consider that many home improvement manufacturers implement price increases in spring. Therefore if you wait until spring, you will not only be buying at a time when business in abundant for contractors, but you will also be paying a premium for the material they use.
By spending time selecting a good quality company, a homeowner in December can get high quality work done at a price that will typically be better than at any other time of the year. Further, many of the more reputable companies have financing options that allow up to a year with no interest and no payments. If you are expecting a tax return that could help pay for the project, a savvy homeowner can finance the project now, at a better price, using someone else's money and paying no interest as long as the loan is repaid quickly.
Plus, as an added bonus, if the product you are purchasing adds insulation value to your home like insulated siding, replacement windows, or attic insulation, then getting them project done now will also allow you to reap the benefits of this efficiency immediately.
Viewing December from the other side of the equation, Remodeling companies must set their goals appropriately. December will never be a stronger time of year than the spring, but it can be a meaningful part of your companies yearly business. December is an excellent time for companies to reconnect with their existing customer base through a newsletter, customer postcard, email blast, or any other way that keeps you in front of your customers for a reasonable cost. Pairing this with a holiday promotion may earn you some additional business at a low cost. The holiday season also lends itself to holiday centered promotions, these can come in many forms. From delivering inexpensive holiday themed gifts to recent installs in order to look for referrals, to becoming involved in a promotion with a charity. There is a lot that can be done to continue to market in December. Lastly, with all of the other distractions that potential customers are dealing with at this time of year, if a homeowner does agree to spend the time to get an estimate on a project they are considering, chances are good that they are probably serious about actually doing this job at some point in the near future. If you can show them homeowner why it makes sense to do this project now, you may have a good chance at earning a sale.
The winter months of December and January are typically slow time for the remodeling industry. Many smaller companies simply shut down, while larger ones resign them selves to the fact that those two months are essentially an opportunity to prepare for Spring. From the homeowners perspective this type of work often gets forgotten at this time of year, what with holidays and gifts and family and good food, there is little time left to think about getting new windows, let alone to do it when its 30 degree's outside.
This however does not need to be the case. Both homeowners and home improvement companies can use this time of year to get meaningful work done.
For a customer who is shopping for remodeling projects, December can be a time that is full of opportunity. For most of the year, the saying "you get what you pay for" holds true. Better companies and better products cost more and with good reason. However in December, even the really well regarded remodeling companies are generally slower than they would like to be. This opens the door to negotiate what is probably the best deal you will get all year long. Many home improvement companies run low on work by the end of the winter and are therefore anxiously awaiting spring. With this in mind, you may find companies willing to negotiate much better rates on projects than they would when they are busier. If you give a company the opportunity to add some work to their schedule in December, you will find that most will work very hard to find a way to make the project work for both you and them.
This opportunity for a better price doubles when you consider that many home improvement manufacturers implement price increases in spring. Therefore if you wait until spring, you will not only be buying at a time when business in abundant for contractors, but you will also be paying a premium for the material they use.
By spending time selecting a good quality company, a homeowner in December can get high quality work done at a price that will typically be better than at any other time of the year. Further, many of the more reputable companies have financing options that allow up to a year with no interest and no payments. If you are expecting a tax return that could help pay for the project, a savvy homeowner can finance the project now, at a better price, using someone else's money and paying no interest as long as the loan is repaid quickly.
Plus, as an added bonus, if the product you are purchasing adds insulation value to your home like insulated siding, replacement windows, or attic insulation, then getting them project done now will also allow you to reap the benefits of this efficiency immediately.
Viewing December from the other side of the equation, Remodeling companies must set their goals appropriately. December will never be a stronger time of year than the spring, but it can be a meaningful part of your companies yearly business. December is an excellent time for companies to reconnect with their existing customer base through a newsletter, customer postcard, email blast, or any other way that keeps you in front of your customers for a reasonable cost. Pairing this with a holiday promotion may earn you some additional business at a low cost. The holiday season also lends itself to holiday centered promotions, these can come in many forms. From delivering inexpensive holiday themed gifts to recent installs in order to look for referrals, to becoming involved in a promotion with a charity. There is a lot that can be done to continue to market in December. Lastly, with all of the other distractions that potential customers are dealing with at this time of year, if a homeowner does agree to spend the time to get an estimate on a project they are considering, chances are good that they are probably serious about actually doing this job at some point in the near future. If you can show them homeowner why it makes sense to do this project now, you may have a good chance at earning a sale.
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