Desire for new amenities still the top reason to remodel
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ccording to remodelers who answered special questions on NAHB’s Remodeling Market Index (RMI) survey for the 1st quarter of 2017, a simple “desire for better/newer amenities” once again ranked as the number one reason customers choose to remodel their homes. On a scale of 1 to 5 (where 1 indicates never or almost never, and 5 is very often), the average remodeler’s response was 4.4. Also once again, “need to repair/replace old components” finished in second place, edged out by “desire for better/newer amenities” by one tenth of a point. These traditional drivers were the only reasons to remodel that with an average rating above 4.0. Another fairly traditional reason, “desire/need for more space” came in third at 3.8. The same three reasons appeared at the top of the list, and in the same order, last year. In fact, the average ratings fell in the same order for all eleven reasons to remodel included on both this year’s and last year’s surveys.
Nevertheless, there were a few differences between the last two iterations of the questions. The average ratings for “desire for better/newer amenities,” “need to repair/replace old components,” “repairing a damaged property,” and “energy efficiency/environmental concerns” each increased by one-tenth of a point. The desire to “avoid moving/buying another home” increased by two tenths of a point. No motivation for remodeling showed a decline in the average rating since last year. It is sometimes easier to see historical
changes by looking at share of remodelers who checked the top options, 4 or 5, in response to the questions about how customers cite particular reasons for remodeling. Since the first time NAHB asked these questions (in 2012), the 4-5 shares are currently at a record high for “desire for better/newer amenities,” “need to repair/replace old components,” and “want to avoid moving/buying another home.“ “Desire for better/newer amenities” and “need to repair/replace old components,” however, set their respective record highs by very narrow margins. Only the share for “desire to avoid moving” was substantially higher than it had ever been before. The only new reason to remodel added to this year’s questionnaire was “to accommodate multi-generational living.” For awhile, NAHB has been hearing anecdotal stories about the emerging significance of multi-generational living, including as a factor that may lead to additional remodeling activity. “Multi-generational living” finished toward the bottom of the list of reasons to remodel in the first quarter 2017 RMI survey, however— ahead only of the two categories that deal with getting existing properties ready to sell. n
New book shows builders and remodelers how to boost profits
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uilderBooks, the publishing arm of the National Association of Home Builders (NAHB) recently released a new publication, Finding Hidden Profits: A Guide for Custom Builders, Remodelers, and Architects. In this second edition of his popular book, Dennis A. Dixon takes readers step-by-step through a construction project, from choosing the right clients, to sales, negotiations and managing the project. With an emphasis on the importance of clear communication in all steps of the project, Dixon shows readers how to get orga-
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nized, stay organized and communicate with clients so that expectations are understood at the beginning of a project. These key steps will minimize issues during the process and increase customer satisfaction—and in turn, a business’ bottom line. According to Dixon, profits can be increased through five key elements: allowances, change orders, payment schedules, detailed specifications and a comprehensive contract. While plans and specs are never perfect, a well-written contract that includes figures, details and addresses other potential client questions, will save time and money in the long-run. Dennis A. Dixon is a licensed general contractor for both residential and commercial projects. Since 1984, Dixon Ventures, Inc. and Dixon Builders have completed more than 300 custom homes and remodel venues, as well as numerous commercial projects. Dixon has been an industry leader in construction and design continuing education since 1994, through magazine articles, consulting, seminars, tradeshows and even a call-in radio show.
Finding Hidden Profits is available for purchase ($29.95 Retail/$$27.95 NAHB Member, ISBN 978-0-86718-754-0) at BuilderBooks. com or by calling 800-223-2665. The ebook is available at ebooks.builderbooks.com ($20.99 Retail/$17.99 for NAHB Members). n