Across the country, homes are getting facelifts, and if you are one of the many homeowners who wants to remodel, you are not alone. However, with more projects that need lumber and the other necessary supplies for construction, shortages are also prevalent. On top of that, agents across the country are wondering if these updates — like spa-ready bathrooms, and home gyms — will have staying power and offer homeowners a return on their investments. Before you get started on planning your next big home project, you might want to consider what the real estate experts at HomeLight had to say about the state of real estate and remodels in 2021, in a recent report. Here are some of their insights to keep in mind.
Consider ROI
While a home gym might be appealing now, are you still going to use it once everyone has more freedom of movement with other options for staying in shape? Real estate agents are strongly urging homeowners to consider whether their remodeling projects have long-term staying power. That is, in a post-pandemic life will this upgrade still be a necessity? Agents in the survey called out particular remodels that have a low ROI, such as a pool, hot tub, or sauna, which 22 percent of agents said homeowners might regret later. A full on home gym is also an upgrade to give a second thought, as 19 percent of agents noted. Aside from making your own assessment, ask your realtor to compare similar homes in your area, especially if you are thinking about selling your home.
Expect delays
If you have a project in mind and you haven’t already booked a contractor and secured necessary permits for 2021, your remodeling dreams may need to be put on hold. Across the country real estate agents shared that many contractors are already booked through November 2021. Permit delays are also a reality, as 26 percent of agents shared in the survey. The advice across the board is, plan as soon as possible and prepare for delays.
Get creative with alternatives
While contractors and permits are delayed, supplies are in a similar situation, particularly lumber, which has seen skyrocketing prices, up by 150% since mid-April. But there are alternatives that could not only solve the problem of supply, but offer a better return on your investment. Composites, which are made from recycled plastic and wood are lower maintenance and longer lasting than wood. If you are open to this option, consult with your agent and your contractor to see if this might be a good fit for your property as an investment.
If you have remodeling dreams for 2021, target your top priorities, instead of trying to get everything done at once — this could allow for better planning, and a higher success rate for your home renovation project. While bottlenecks are likely to occur, staying aware of the trends in construction can help you move forward no matter how big or small your project is.
