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. If you are having a large-scale project or a simple project that requires little time, it is important to build a client-builder relationship throughout the construction process. 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. From the expectations, about $200 billion worth of Chinese goods are set to be levied. 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%. In this article, you will find out more information about what this means.
From this, homeowners should expect to spend more in repairing their home than what they had previously budgeted for. You should, therefore, be flexible to the thought that the total figure provided by the contractor who is building your home can change as it will be stipulated in the escalation clause provided in the signed documentation. 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. Most experts in the industry have intimated that builders are in the quest of finding affordable methods of getting what they want through cost savings. 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. Now that the availability of quartz will be affected, this will limit homebuyer options. In the short run, the prices that are rising also affect those who want to rebuild and recover their houses after natural disasters.
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. Agents must ensure that buyers are educated before they make a move the real estate industry.