Generally most people think of the local market as the major driver of the cost of a new home, while this is true, other outside forces well beyond the area can have an impact.
The cost of materials can be affected by a wide range of factors. Currently in the news is the talk of tariffs on imported goods. One of particular interest to builders is lumber imported from Canada. Canadian lumber makes up to 40% of the lumber market in the U.S. So an increase in it’s cost will surely cause the overall price of lumber to rise.
Another impact is local and state building requirements and codes. These rules are set by county, state and federal building code offices for reasons of safety and zoning. They can seem very arbitrary and many more rules and requirements are added every year. Deciding to build your home next year as opposed to this year, can sometimes be the difference of a few thousand dollars, depending on how many new codes go into effect. And don’t forget the myriad of permits and fees associated with building a home.
Federal laws can change what building supplies are available and their cost. When new laws are in acted, for instance one to limit the amount of water a toilet uses when it is flushed, can cause product availability issues and also raise it cost.
Other rules surrounding the professionals and workers that are involved in the housing industry also play a part. State or counties can require special licenses or training for real estate agents, contractors, professional trades (plumber, electrician, etc.), lawyers and even day laborers. An additional requirement or cost to any of these individuals will certainly be passed down to the home buyer.
Banking law and interest rates, of course, contribute immensely to the cost of your new home. A slight increase in the mortgage interest rate or limits on how much you can borrow can make the difference between getting that polished granite countertop or settling for a nice faux one.
Fortunately, Louie Hopkins can help guide you through this process. His experience and connections within the local building community, gives him the knowledge and expertise to navigate even the most complicated plan. He has relationships with local real estate agents, brokers, and developers to help you find the right lot. Rest assured that Hopkins Builders has every item on the list covered, from permits to licenses. Give them a call today, 843.992.4697.
