After years of living in the same house, all homeowners will eventually ask themselves if the home still satisfies their lifestyle. It may have fallen out of style or they could simply require more space. They then have to choose between moving to a new home and constructing an addition. Showing your client the benefits of building an addition to help them make their decision can be extremely profitable, giving you a slice of the home improvement market pie, which was $349 billion in 2018.
As a builder, there are several good reasons to encourage clients to think about building an addition rather than buying new. Here are some reasons your client should consider:
When a homeowner hires you to paint an old home’s walls, remodel the kitchen, or install new floors, you’re often retouching an existing design without making major changes to the structure. An addition allows you to guide the owner in designing a completely new space to their own specifications.
The National Association of the Remodeling Industry puts numbers to the intangible benefits homeowners enjoy by remodeling:
As a contractor, there are few projects that are as creatively satisfying as filling the blank slate that is a home addition.
In financial terms, the ability to take out a home equity line of credit (HELOC) to finance the construction of an extension could prove beneficial. Presuming a homeowner has a credit score higher than 640, and a debt-to-income ratio lower than 40%, they can apply for a revolving credit line for a set period of up to 15 years.
This line of credit can be used for a range of purposes and, according to Forbes, can be applied to substantial home remodeling. The IRS lets a homeowner treat a home as a qualified house for up to 2 years (subject to criteria set up in the US Tax Cuts and Jobs Act). This would let the client claim tax deductions on the loan interest, reducing the overall cost of the construction loan.
When home equity loans are made more affordable due to low interest rates, the nation experiences an orchestra of saws and hammers as workers start frantically building home additions. It’s one of the most expensive remodeling projects a homeowner can undertake. What’s more, unlike other home remodeling projects, building an addition cannot be easily undone.
Therefore, you should offer ideas, provide expert workmanship and use high-quality materials to justify the cost to your client and give them a home extension that will contribute to a long term increase in value of the home.
The Pro Gallery is a supplier that specializes in offering materials and fittings to contractors carrying out residential and commercial construction and remodeling jobs. Call our friendly home improvement professionals today at 717.982.6870 and come visit our showroom!