The Cost Of Custom Homes and Renovations Will Rise In 2018

Be prepared to pay more for your renovations and custom home build in 2018.

The cost of construction is rising and doesn't look like its going to settle down anytime soon. If you are planning to build or renovate in 2018 then you need to adjust your budget accordingly.

Here are some of the reasons why construction is going to cost more in 2018;

• A building boom. There is a building boom in our area, builders are busier then they have ever been before. That means that they have the ability to pick and choose the jobs that they want to take on, gone are the days of pricing jobs low just to stay busy.
• Material costs. Building materials have doubled in price in the last 6 months. That means that the raw building materials could cost you anywhere from 50 to 100,000 dollars more then in early 2017. It has become so bad that there is an actual lumber shortage at most lumber yards for a lot of products.
• Labour. With a bunch of law changes coming from the provincial government and a minimum wage increase the cost of all labour will be going up in 2018. All businesses will have to raise there rates to cover the increase in costs.
• Trades shortage. There is a severe shortage of trades in most areas. Tilers, masons, plumbers are getting harder to secure because they are under such a demand for their services.
• Big Business. Large corporations are buying up smaller businesses and consolidating them so that they have a monopoly. Insulators, concrete suppliers, waterproofers, mechanical contractors are just a few of the trades that are being bought up and controlled by a handful of large corporations. This means that they will be able to artificially inflate the cost of what they provide.
• Land costs. If you are looking to build a custom you are going to have to pay more for your building lot with the hot real estate market.
• Building Code Changes. The building code has had dramatic changes in the last 5 years with the amount of insulation required rising and the overall energy efficiency of homes having to rise. Eventhough this is a good thing in the long run it usually means that it will cost you more money upfront to build.

Whatever you are planning to do in 2018 whether it is building a custom home, renovating or adding an addition be prepared to pay more then you did in 2017. You will have to approach the project with a contingency fund to help offset the costs that are rising so that you don't end up in a situation where you run out of money before the project is finished.

Rob Abbott

Village Builders Inc.

How Not To Go About Hiring A Building Contractor

So you have a project that you want completed, lets say its a garage or addition, in your area like the area that I live in there is a building boom with a real lack of skilled trades.

You have decided that your budget for the project is 100,000 dollars. You've decided this after talking to some of your friends and looking at the internet. You then call around to as many builders as will talk to you and the one thing that you are focused on is what its going to cost, it has to cost you less then your 100,000 dollar budget.

What you hear when you talk to builders via email or on the phone is that it will cost you 150,000 dollars. You want more details from the builders about how it can cost this much and can't they do it cheaper for you?

This is the point where most builders stop talking to you and you continue searching for someone that will do the job for the price you want.

You as the homeowner get frustrated because you don't understand why builders won't spend the time to educate you and also work in your budget cause your important, your special......

Here's the view from the builder;

You call them up and you start asking general questions like how much for a 800 sqft addition on my house, I want it in this style and I want hardwood floors and granite counter tops. I as the builder who gets this call two to three times a week with the same probing questions from people I've never talked to before ask you three questions.

Here are the three questions;

• When do you want to do the project?
• Do you have any plans?
• What's your budget?

Those three questions will tell me mostly what I need to know.

Usually the answers to the questions go like this;

• I was hoping to start in the early spring.
• Not yet.
• 75,000 to 100,000 at the max.

I tell you that basically you don't have any way I can price the job because you don't have any plans and that you are probably gonna need a bigger budget by the square footage size of the addition.

You start to negotiate, that's when I basically I can't help you, until you get some plans.

You start scanning the internet looking for the next builder, frustrated because you can't seem to find anyone that will work with you for free to get your designs and plans and then work cheaper then everyone else.....

 What happens is that eventually get cheap plans completed and you use those to shop for a contractor that will work for your budget. With your set of plans you get all kinds of prices from all kinds of builders and tradesmen. You choose the lowest price guy and your happy, that doesn't last long....

There is a reason for the lowest price (especially if they are claiming that they can stay in your budget that is to small to begin with), they either don't know how to price a job or they missed things or they purposely omitted things to get the job.

What will happen next is that your addition will turn into your nightmare.

Somewhere during the build you as the homeowner will start to realize that the quality isn't what you wanted, the costs seem to be rising as you are being billed for extra's that you assumed were part of the original price.

Eventually you either except that you are going to have pay the builder what he charges you until its finished or you fire them and end up trying to finish the project yourself. Either way its your nightmare.

I have seen this happen not just with additions, but with reno's, complete custom homes and even accessory buildings.

To avoid this you have to listen to the first 10 builders you called, have a realistic budget, find a builder that you can trust and let them tell you what the real cost of your project is going to be.

I you do this, if you find a builder with a good reputation and you listen to them then your project will be more enjoyable and the end product will be exactly what you want.

Rob Abbott

Village Builders Inc.