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Market future

By Alex Shekhtman

Home Builder with A&A Design Build Remodeling, Inc.

December 04, 2008 02:44 PM

I own a design-build remodeling company and live in Chevy Chase, MD. The real estate market here is quite stable. However, most of our projects lately are smaller in size and scope. It looks to me that people only do whatever is absolutely necessary. In addition to remodeling, we also provide Handyman services and this part of my business is on the rise. I know that in other areas of MD and DC the market is not as stable.

I know quite a few remodeling companies that reduced the number of emploees by 50% or more. So, when should we expect any improvement?

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C Tann-Starr

Tann Starr & Associates, Inc. - Palm Bay, FL

No, I think you are a realist. It's Congress throwing money at our problems which usually makes an element of society become hopeful. According to a few blurbs I heard on the news the loan refi packages have spiked with the announcement of the rates being lowered to 2005's level. By the time that picks up a little more momentum people will think more about holding onto what they have and fixing it or bailing out with a sell. Some of the builders that I am working with up here are looking to convert their inventory to rentals if they can't sell them. They are watching the feds like a hawk.

Dec 04, 2008 03:05 PM

C Tann-Starr

Tann Starr & Associates, Inc. - Palm Bay, FL

My friend Fred makes an interesting point about the pending rate cute here. :-)

Dec 04, 2008 03:13 PM

Keith Elliott Jr

KEIRE Realty Group - Manassas, VA

Principal Broker/Owner

Hello Alex,

Welcome to Active Rain and congrats on your first post! The opportunities to learn and network are incredible here. Best of luck to you!

-Keith

Dec 04, 2008 03:19 PM

Alex Shekhtman

A&A Design Build Remodeling, Inc. - Chevy Chase, DC

Design Build Remodeling, Washington DC, Bethesda, Chevy Chase

I am a remodeler, not a builder. This may be a blessing or a curse, it depends. We don't have the inventory to rent, which again may be a good thing.

We, the remodelers, and realtors are in the same or similar situation. If people are not willing to spend money or can't afford to move, we have no business.

Lately, only handyman services that we provide, give us some cash flow.

Dec 04, 2008 03:25 PM

Patricia Kennedy

RLAH@properties - Washington, DC

Home in the Capital

Alex, welcome to Active Rain! You'll be addicted in no time at all.

Dec 04, 2008 03:33 PM

Mick Michaud

Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX

Your Texas Lifestyle is Here!

The improvement is up to you. What are you going to do to adapt your business to current conditions?

Waiting for a rising tide to float your boat may leave you stranded for a very long time.

My 2c worth.

Dec 04, 2008 03:34 PM

Alex Shekhtman

A&A Design Build Remodeling, Inc. - Chevy Chase, DC

Design Build Remodeling, Washington DC, Bethesda, Chevy Chase

Thank you Pat. You are correct about getting addicted. I think I am hooked.

Dec 04, 2008 03:44 PM

C Tann-Starr

Tann Starr & Associates, Inc. - Palm Bay, FL

Alex, I am glad that you at least have a cash flow. Some of my friends had to close their brokerage houses. That was very emotional and difficult to deal with. You make an excellent point, we are in the same boat. Remodels add that extra bump in value that can be the difference in a property selling or staying on the market. I will try and remain hopeful for us both. Wishing you the very best with your business. I visited your website and enjoyed the photographs. You guys do very lovely work. Looking forward to hearing more from you. Welcome to Club Chaos. Regards, Carolyn. :-)

Dec 04, 2008 03:47 PM

Alex Shekhtman

A&A Design Build Remodeling, Inc. - Chevy Chase, DC

Design Build Remodeling, Washington DC, Bethesda, Chevy Chase

Mike, thank you. I am not complaining and you better believe me, I am not waiting for the rising tide. I dramatically reduced the number of emploees and moved to my home office to reduce overhead. I network a lot. I offer and promote Handyman Services. This part of my business has been very succesful in the past.

Dec 04, 2008 03:50 PM

Alex Shekhtman

A&A Design Build Remodeling, Inc. - Chevy Chase, DC

Design Build Remodeling, Washington DC, Bethesda, Chevy Chase

Carolyn, you are correct again. Properly and tastefully done, even a little bit of remodeling can significantly improve the quality of life and/or make it easyer to sell. Obviously, I prefer to do it for the people who are planning to stay in the house.

Sometimes, it is just so painful for me when people wait for too long and then have to remodel in order to sell. When I work with clients, one of the questions I ask is: how long are you planning to stay in the house?

I offer different solutions depending on their answers.

Dec 04, 2008 03:58 PM

C Tann-Starr

Tann Starr & Associates, Inc. - Palm Bay, FL

Alex, I believe it's one's ability to be flexible to the needs of a client that separates business entities and gives them an edge over competitors who just do more of the same because their available choices are rigidly set. Being pro-active to their answers is a very good thing.

Dec 04, 2008 04:04 PM

Marcy Fedalei

Keller Williams Realty - Spartanburg, SC

Great start on ActiveRain! Welcome and thanks for sharing your thoughts and ideas.

Dec 04, 2008 09:55 PM

Richard Iarossi

Coldwell Banker Residential Brokerage - Crofton, MD

Crofton MD Real Estate, Annapolis MD Real Estate

Alex, I work in your market area and yes, while it is stable compared to other parts of the country, sales are still down pretty significantly. In a lot of cases, instead of paying someone to remodel, they're going to the "big box" stores and trying some things on their own. Remember too, people who were in the construction trade are now taking on jobs as remodelers as well.

Dec 04, 2008 10:19 PM

The Trumm Team Omaha Homes for Sale, Real Estate

Keller Williams Greater Omaha - Omaha, NE

Welcome to ActiveRain!

If you would like a few tips on getting the most out of ActiveRain, please visit my blog Welcome to Active Rain. It has a few simple steps of what to do now that you have joined.

If you ever have any questions, just let me know.

Troy Trumm

Dec 04, 2008 11:29 PM

Alex Shekhtman

A&A Design Build Remodeling, Inc. - Chevy Chase, DC

Design Build Remodeling, Washington DC, Bethesda, Chevy Chase

Richard, thank you for your answer. I know quite well that many people layed off from new construction "suddenly" become remodelers. Most of them also loose their shirt doing it. Remodeling is, as they soon discover, a much more complicated process and the margins are very different.

Dec 05, 2008 04:33 AM

Dan Magstadt

Paramount Residential Mortgage Group, Inc - Lake City, FL

Congrats on your first post - Welcome to ActiveRain!!

Dec 05, 2008 06:43 AM

Sandy Childs

Keller Williams Realty - Spartanburg, SC

Realtor - Spartanburg, SC

Congratulations on joining Active Rain. This is a great professional networking site. Hope you enjoy this site as much as I do.

Dec 05, 2008 08:21 AM

Sasha Miletic - Windsor Real Estate

RE/MAX Preferred Realty Ltd. - Windsor, ON

Hi Alex, Welcome to AR, Be a Blogholic and start writing your own blog soon on AR. All the best for your RE business. This is the right place for customers, friends, realtionships etc.

Best - Sash

Dec 05, 2008 02:14 PM

Vicente A. Martinez

Prudential Douglas Elliman Licensed Real Estate Salesperson - Woodhaven, NY

Realtor, Brooklyn - Long Island - Queens Homes

Hi and welcome to active|rain. There are thousands of tips, tools, and tricks of the trade here. Be sure to check them out. Best of luck and see you around.

Dec 05, 2008 03:01 PM

Everard Korthals

---Preferred Lifestyle Advisors--- - Lancaster, PA

Mountain Realty

Welcome to Active Rain. This is a great place to learn and share with others. IF ever you were to have any questions then feel free to contact us and we'll try to help. Please take a look at our blog for links to valuable information in our sidebar that you can use to navigate this extensive network. Subscribing to our blog is also a great way to read our blog straight from your home pages. We also suggest taking a look at the Active Rain Wikipedia group for resources that may be valuable to you. We hope you have a great day in the Rain! All The Best-

Sincerely, Active Castellum

Dec 05, 2008 04:15 PM