Savings vary by state, region, and the specific project, but no matter
where and what remodeling is being done, it is less expensive now to remodel
than it has been for several years.
For example, a kitchen remodel in Arizona now costs a lot less than it
did in 2006. The new windows, doors, roofing, and insulation materials can
earn the maximum Federal Recovery Act tax credit (on one's federal income
tax) of $1,500. The new credits apply to remodels and purchases made after
the date of enactment of the Economic Stimulus Act for the cost of many
products, including windows, insulation, roofs, sliding glass doors, garage
doors, and French doors. To claim the new tax credits homeowners will be
required to complete and file IRS Form 5695.
In Pennsylvania, in addition to the federal tax credit, the state offers
the Keystone HELP Energy Efficiency Loan and Rebate Program to help
homeowners improve the energy efficiency of their homes. The program
includes several types of low-interest loans and, for projects completed
after February 23, 2009, Energy Star rebates, and Advanced Performance
Energy Star Rebates of up to $250 and $500, respectively.
A list of the different rebates, credits, and discounts can be found at
remodelormove.com and dsireusa.org
In addition to the energy and stimulus package savings, the most common
building products, such as lumber, dry wall, insulation, and plumbing
fixtures cost 10 percent less now than they did in 2006, according to the
Bureau of Labor Statistics
The cabinet industry is an example of what has been happening to the
sales volume and cost of home improvement materials over the past few years.
Sales volume at some manufacturers had dropped 40 percent by the end of
2008. But, in the first three months of 2009, sales rebounded by 10 percent.
Many cabinet companies are offering discounts of 10-50 percent on some
product lines
So, how does this all impact a typical kitchen remodel? This summary
shows the savings potential.
An Example of a typical kitchen remodel in 2006
Savings vary by state, region, and the specific project, but no matter
where and what remodeling is being done, it is less expensive now to remodel
than it has been for several years.
For example, a kitchen remodel in Arizona now costs a lot less than it
did in 2006. The new windows, doors, roofing, and insulation materials can
earn the maximum Federal Recovery Act tax credit (on one's federal income
tax) of $1,500. The new credits apply to remodels and purchases made after
the date of enactment of the Economic Stimulus Act for the cost of many
products, including windows, insulation, roofs, sliding glass doors, garage
doors, and French doors. To claim the new tax credits homeowners will be
required to complete and file IRS Form 5695.
In Pennsylvania, in addition to the federal tax credit, the state offers
the Keystone HELP Energy Efficiency Loan and Rebate Program to help
homeowners improve the energy efficiency of their homes. The program
includes several types of low-interest loans and, for projects completed
after February 23, 2009, Energy Star rebates, and Advanced Performance
Energy Star Rebates of up to $250 and $500, respectively.
A list of the different rebates, credits, and discounts can be found at
remodelormove.com and dsireusa.org
In addition to the energy and stimulus package savings, the most common
building products, such as lumber, dry wall, insulation, and plumbing
fixtures cost 10 percent less now than they did in 2006, according to the
Bureau of Labor Statistics
The cabinet industry is an example of what has been happening to the
sales volume and cost of home improvement materials over the past few years.
Sales volume at some manufacturers had dropped 40 percent by the end of
2008. But, in the first three months of 2009, sales rebounded by 10 percent.
Many cabinet companies are offering discounts of 10-50 percent on some
product lines
So, how does this all impact a typical kitchen remodel? This summary
shows the savings potential.
An Example of a typical kitchen remodel in 2006
Cabinets $10,000 Flooring $2,500 Appliances $3,000 Countertop $5,500
Fixtures $2,000 Doors, windows Lumber, materials $2,000 Labor $15,000
Contractor Overhead & miscellaneous costs $10,000 Total 2006 cost $50,000
The same kitchen remodel in 2009 Cabinets $8,000 - 20% savings from
retailers Flooring $2,000 - 20% savings from retailers Appliances $2,500 -
17% savings from retailers and government programs Countertop $5,000 - 9%
savings from manufactures and retailers Fixtures $1,800 - 10% savings from
retailers and government programs Doors, windows Lumber, materials $1,500 -
25% savings from retailers and government programs Labor $12,000 - 20%
savings from contractors
Contractor Overhead & misc costs $7,000 - 30% savings from contractors
and retailers Total 2009 cost $39,800 - 20% savings from the cost in 2006
To achieve such savings, homeowners will need to take advantage of all
the rebates and discounts on windows, doors, appliances, etc., as well as
competitive bids from contractors and skilled tradesman. The online
remodeling cost estimate calculators at
www.remodelormove.com are a
good way to get an initial budget for a project.
About Remodelormove.com:
Remodelormove.com is the online resource for homeowners making the
decision whether it is best for them to remodel their current home or move
to a new home. With its partner site, remodelestimates.com, the site
provides information, unique and uniquely accurate calculators that compare
costs, forums, seminars, and advice for homeowners.
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Barb Fujito Phone: 888-825-4169
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