Survey: Homeowners ready to spend
21 Jan, 2011Beware undercutting as competitive contractors are ready to discount.
Homeowners are ready to jump back into home improvement in 2011, and their timing couldn't be better as contractors say they're still willing to cut prices to get business, according to the latest Angie's List surveys.
"Contractors offered big discounts in 2009 and in 2010, but many homeowners held back for economic reasons. But our members say they are ready to spend," says Angie Hicks, founder of Angie's List, a provider of consumer reviews on local service companies.
Ninety percent of the Angie's Members responding to a January 2011 survey say they plan to spend, on average, 5% of their homes' value making improvements and repairs. In a separate poll of contractors rated on Angie's List, also conducted in January, 80% of the home improvement specialists said they were willing to drop their prices in 2010 to get a job. Only 43% were willing to drop their prices in a similar 2008 survey.
"As demand increases, contractors are going to pull back on those discounts," Hicks predicts.
More than half of the companies who offer discounts said they would discount up to 10%, but nearly a quarter of others would cut up to 20%.
"Consumers should never hire based on price alone," Hicks says. "But it's definitely a factor in the hiring decision, and one worth exploring."
The economic climate in 2010 caused 37% of respondents to postpone remodeling plans. This year, Angie's List members say they plan to invest an average of $17,500 on home improvements. Specifically:
- 59% want to update or improve their home
- 22% plan to make repairs
- 9% are looking to increase the resale value of their homes
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