What Homebuyers Should Know about the New Tariffs and Home Construction Prices
Many of the real estate buyers prefer building their home or renovating one to live in or sell instead of purchasing a new move-in ready home. The real estate buyers are required to use the services of local construction companies in the above situations. It is vital that you work on building your relationship with the builder throughout the construction process whether it’s a simple project or a large-scale project. The imported Chinese goods into the US which are worth about $16 billion were slapped with tariffs as from August 2018 and especially the products that are used in the homebuilding market. At the end of the day, levies are going to be imposed on about $200 billion of Chinese goods. At this time of the year, the tariff is a 10%, but at the end of the year, experts argue that it could escalate to 25%. By reading this article, you’re going to learn more about what this means.
For homeowners, it means that it would cost you more than your budgeted to repair your home. Therefore, you need to be flexible and understand that figure that the figure that the contractor will provide you with when building your home can change, as you will find in an escalation clause provided by the contractor. Homes are now selling higher than the average prices around the country as the real estate market booms. Now, investors have more cash invest in new projects.
Builders are hurrying up to complete their projects on time even as new tariffs rollout and especially because of the expected increases in tax. Experts in the real estate are saying that cost savings are going to be the main agenda of builders who are continuously finding affordable ways in your building. The tariffs have already affected the prices of Canadian lumber and other imported goods such as steel and titanium, and it is expected that this will increase the prices of home fixtures such as HVAC units. The homebuyer now has limited options due to the change in the availability of quartz. Those who want to rebuild and recover their houses after a natural disaster is also affected by the higher prices but in the short term.
More homeowners are seeking affordable housing options, and the price spikes will be of great interest to them. It is the duty of the real estate experts to ensure that new buyers can understand the changes happening in the industry. The agents can, on the other hand, ensure that buyers are educated before making any move.