It’s all about supply and demand.
There’s been no shortage of news around rising costs of building material. Lumber prices have risen 377% over the past year. Copper wire and Steel have also seen a significant increase over the past year.
While these increases have dominated the news around new home construction, they also have a major impact on existing home renovations.
Therefore, finding an existing home that is already renovated could save you money in the long run versus finding a home that is in need of larger renovations.
Below are the most common and expensive renovations in relation to rising building material costs. I have listed out the average cost before the rise in material costs. I have also outlined four things to consider when evaluating renovation quality.
Kitchen
Average cost: $19,720
Bathroom
Average master cost: $30,000 – $50,000
Average small bathroom cost: $7,830
Cabinets
Average cost: $3,965
Outdoor deck
Average cost: $5,000 – $9,300
Four things to consider when evaluating renovations in a home
Material quality
Inspect flooring, countertops, doors, and cabinetry.
Look for high-quality materials like granite, custom cabinets, real hardwood flooring, and solid core doors.
I generally find that when high-quality materials are used the less likely it is that corners were cut on construction.
Plumbing and electrical
I recommend having a knowledgeable professional inspect the plumbing and electrical work, especially if it was a recent renovation prior to putting the house on the market.
An inspector will generally catch some electrical and plumbing issues. However, mistakes or cut corners can often be made in a renovation that are not always revealed in the inspection.
Detail work and finishes
There are a lot of contractors out there and just as many DIY homeowners, for this reason, looking at the detail and finish can provide clues as to whether or not the renovation was done using a reputable contractor.
Red flags to look for are things like uneven tile work, bowing floors, and uneven cuts. Also, check cabinetry work for smooth opening and closing as well as the gold standard dovetail joints.
Appliance and fixture quality
An easy way to identify if the renovation was done just to flip or quickly sell the property is the quality of appliances and fixtures.
Generally, if high-quality appliances are in the home, the homeowner also invested in high-quality craftsmanship.
Look for appliances from reputable brands within their mid to high-tier options. Look for fixtures that are metal and from reputable manufacturers.
Conclusion
With sky-high material costs, now might not be the best time to purchase homes that need large renovations. Instead, consider looking for a home that has already been renovated by a high-quality contractor.
As your experienced real estate agent, I help you identify whether or not renovations are of good quality and craftsmanship.
If you are looking to buy a home this summer, please contact me here, and I’ll help you find the best home within your needs and budget.