Undertaking a home renovation can be an excellent way to save money on the purchase price of a property and create a unique environment that can serve as a source of pride. However, for the majority of individuals, even in the smallest of instances, a house renovation is a big task.
Meeting with architects and contractors, evaluating numerous proposals, selecting materials, and budgeting are all time-consuming tasks that frequently fall outside the skill range of the average homeowner. Renovations can be costly and disruptive after these ideas and decisions are made, regardless of whether everything goes according to plan. Even modest renovations are becoming more difficult than ever.
Planning a house remodel in 2022 adds additional complications, such as supply chain delays, inflation, and a tradesperson shortage. Three points to consider ensuring that your home remodeling experience is as positive and effective as possible:
Renovations require forethought, patience, and financial resources.
“To refurbish,” interior designer Jamie Drake, co-principal of New York-based interior design firm Drake/Anderson, says, “three things are required: forethought, time, and capital.” Though these three items have always been required to do any size remodeling, it appears that you may require more of all three than you anticipated.
Consideration: Consideration “means generating a set of renovation proposals and presenting them to building management (or the homeowners association) for approval,” Drake adds. This may include obtaining permits from the city or county, or, as Drake observes, from the New York City Department of Buildings.
Planning ahead is critical in today’s climate. “Previously, a contractor could order materials on an as-needed basis,” explains Tanya Koul Strausbaugh, a RE/Max Select agent and founder of Common Ground Investments, a Pittsburgh-based redevelopment and leasing company. “Nowaday, due to supply chain delays and rising material costs, anyone renovating should defer starting the job until all materials are on site. You should anticipate supply delays, and it is preferable to resolve them prior to the start of demolition. Before the project begins, have the foreman check off each item, down to the last nail. You don’t want your kitchen to be completely finished but with a gaping hole between cabinets and counters while you wait for your oven.”
Patience: is required more than ever before due to supply chain delays and manpower shortages. “Material delivery and approval processes are currently slower than they were previously, as building departments across the country are approving projects twice as quickly as they were pre-pandemic,” Drake explains. “And the contractor you may want is almost certainly booked solid, so you’ll have to wait in line. Additionally, the supply chain difficulties that we have all been reading about are not fictitious. Everything is facing delays, from framing to sheetrock to appliances.”
Luckily, Stone Creek Building is extremely fast at responding to their clients and takes every inquiry serious.
Strausbaugh continues, “If you did a bathroom five years ago or a kitchen two years ago, it could take three to five times as long to complete.”
In many circumstances, patience necessitates flexibility. “Renovating today is a little different than it was in the past,” says Alexander Chingas of Coldwell Banker Realty’s Bross Chingas Bross Team in Connecticut. “An intriguing element to consider is the delay in acquiring construction permits and the necessary sign-offs from building department authorities as work continues on larger projects.” This has simply served to lengthen already lengthy timelines.
Cash: You’ll also require more cash than you anticipated, owing to delays and inflation. “Prices have increased across the board,” Drake notes. “The top contractors are in high demand, and their rates reflect their ability to pick and choose the projects that interest them the most. The cost of raw materials has increased, as have the prices of appliances.”
Strausbaugh notes, “In our market in Pittsburgh, what used to take eight weeks now takes 19 or 20 weeks.”
Strausbaugh says nine semicustom doors for the interior of a building she restored a few months ago took 20 weeks to come from Ohio, rather than the typical five. “And three of the doors were sized incorrectly,” she continues. “While the normal error rate on this type of order is 2%, this 30% error rate appears to be closer to the ‘new normal’ in today’s construction industry.”
Additionally, the bottom line is impacted. “In New York City, for example, $800 to $1,000 per square foot was once considered a decent rate for a high-end remodel,” Drake explains. “Nowaday, we sometimes see prices of up to $1,500 to $1,600 per square foot.”
The Price Difference Between Renovated and Unrenovated Homes Continues to Grow
Properties that have been renovated typically sell for more than those that require extensive work. Buyers will pay a premium for a “bring your toothbrush” house and will expect a discount if the property requires thousands of dollars in updates. However, with today’s supply chain delays, a shortage of competent labor, and rising material costs, that gap has grown wider.
“There is no doubt that we have witnessed a trend toward properties that deliver immediate gratification,” Chingas says. “Recently constructed homes or those that have been renovated to appeal to today’s consumers are attracting the most interest and selling the quickest.”
If you’re in the Portland, Oregon, area and are looking to start renovations for your home to increase the price or just make it more appealing to you, contact Stone Creek Building to see if we can help you get your dream home or make you some extra money when selling!