A Complete Guide for Homebuyers to Understand 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. So that to achieve the above, the real estate buyers must use the services of local construction contractors. 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. Eventually, about $200 billion of Chinese goods will be taxed. The tariff is at 10% right now, but most experts anticipate that it could go up to 25% by the end of 2018. By reading this article, you’re going to learn more about what this means.

From this, homeowners should expect to spend more in repairing their home than what they had previously budgeted for. This should enable you to be more flexible to the idea that the figure that will be provided by the contractor may change and will be included as an escalation clause in the official documentation. You will find that the sale of homes is now being done at higher prices than average in many parts of the country, even as the real estate market continues to boom. Now, investors have more cash invest in new projects.

With more rolling out of new tariffs, you will find that builders will rush to complete more projects on time especially now that they also expect increases in taxes. 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. Items such as steel, Canadian lumber, and titanium have already been affected by the increasing tariffs which will possibly lead to the increase in the prices of household fittings such as HVAC units. There also has been a change in the availability of quartz which will limit the options of the home buyer. 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. The changes which are happening in the industry should be broken down by the real estate experts for the sake of new buyers. Agents must ensure that buyers are educated before they make a move the real estate industry.