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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. Whether you have a simple project or a large-scale project, it is vital that you enhance your relationship with the builder throughout the 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. At the end of the day, levies are going to be imposed on about $200 billion of Chinese goods. The tariff is at 10% right now, but most experts anticipate that it could go up to 25% by the end of 2018. 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. 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.

As more tariffs are rolled out, builders are quickly completing their projects on time even so that to avoid the 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.

It is of great interest to the homeowners who are searching for affordable housing options to follow the price spikes. The real estate experts now have to inform new buyers of the changes that are happening in the industry. It is also important that the agents ensure that buyers are well-informed before making any decision.