How to Navigate the Home Renovation Process Amid Inflation
Updated: Oct 12, 2022
By Serjk "Serj" Markarian, Licensed Associate Real Estate Broker
Over the course of this year, many Americans have felt the effects of the supply chain crisis, which is why some homeowners have held off on renovating their homes. Their concerns about timely access to supplies are valid. And now, with inflation in the picture, renovation can seem almost impossible for some.
However, don’t fret! With any home renovation project, a carefully thought-out plan created well in advance is key, regardless of external circumstances. As Francis Toumbakaris, Founder and Lead Interior Designer of Francis Interiors, mentioned in my one-on-one interview with him, you should set practical expectations when it comes to the timing of your project.
While there has been some improvement in the supply chain crisis since the start of the year, you don’t want to leave anything to chance— order materials, particularly those that have long lead times, well ahead of time. This article offers good suggestions for getting around the supply chain crisis should you encounter any issues.
In addition to careful planning and setting a reasonable timeline, prepare to be flexible and patient and also expect higher costs. Speaking of costs, homeowners are now also having to contend with inflation. The high prices for supplies and materials are making renovations more costly. For example, the cost of appliances has increased 8.5 percent in just one year. If you’re working with a contractor, carefully vet them and ask them how they might be able to help circumvent some of the building material costs.
Recognizing each situation is unique, the most important thing is to carefully weigh the costs and benefits of your renovation. Certain home improvements garner greater added value than others. Also, as a reminder, Brown Harris Stevens Curate program allows sellers to defer renovation costs until after the close of the sale and includes access to a network of fully insured and vetted service providers.