August 29, 2020

As the United States begins to reemerge from an almost three-month-long quarantine, most of us are making attempts to plan, understand, and strategize for the ensuing steps needed in order to rebuild our lives. Becoming accustomed to a new social landscape, enhancing our standards of cleanliness, planning our financial survival, employment, investments, and learning how to conserve our resources has become the new mental cycle. Adjusting, adapting, gearing up, and putting on our adult hard hat is the new norm.

If you’re a homeowner, there are about a hundred swirling questions to occupy your already taxed mind. How will this affect my home’s value? Will I need to refinance? Can I still tackle that home improvement project I had planned for? Are there contractors available?

With so many uncertainties, we decided to offer a bit of insight to help answer some of your most burning questions. Below are some of the real potentialities coming out of this unprecedented global pandemic.

The Positives

While there are many uncertainties, there are also a fair number of silver linings to this economic crisis. Everything from the real estate market, to the cost of construction, the availability of contractors, and even down to the cost of materials has been affected by the novel coronavirus. Yet somehow, the home improvement industry has managed to remain relatively unscathed throughout the existing turmoil of the crisis. Here are some of the positive outcomes coming out of COVID.

Deals to Be Had

One of the positive outcomes of our current economic crisis is the deals that are starting to surface within the home/building/real estate market. If you’re in escrow or are about to close on a property, there may be deals to negotiate. Talk with your realtor, as well as your bank or financier to see how you can work within this newly flexible market. Without question, property values across the nation are beginning to decline, meaning that if you’re currently in the market for a new home, chances are you’re getting a great deal as compared with a few months prior to the crisis. Inquire about a lower interest rate, increasing your loan size while decreasing your APR, or use this opportunity to finally refinance your mortgage! Make this economic downturn work in your favor by discovering your options and working with newfound flexibility.

Cost of Building

If you’re tackling a sizable home renovation or a new build project, chances are that your contractor or design-build team will be a bit more flexible with their percentage, or be able to negotiate a lower rate when selecting subcontractors and material sourcing. This flexibility could lower your overall cost of construction significantly. With the stock market decline, many industries, the building industry included, are offering enhanced flexibility in order to level with the current market.

The Negatives

Delay on Materials

Of course, one of the industries most affected by the pandemic is shipping and handling. With that said, it appears that the worst is over, and the majority of suppliers and shipping facilities have been back up and running, if at a reduced speed. Meaning that your materials may take a bit longer than normally expected to arrive.

Unnecessary Spending During Economic Crisis

Another concern many echo at the moment is using up resources during this very uncertain global economy. Unprecedented job loss across the nation has instilled a new sense of fear and increasingly conservative spending from all economic backgrounds. Especially if you work in a volatile industry, a large expenditure such as new home improvement can be cause for concern.

With the known risks associated with large-scale spending, many hold back from continuing new home renovations, home purchases, or plans for improvement. Yet with the obvious gamble that home improvement projects pose, the risk may be well worth the reward. By starting the conversation with your realtor, contractor, or bank, you should be able to actualize your exciting projects and purchases without digging an economic hole for yourself. Thinking about updating your interiors, investing in Los Angeles kitchen remodeling? Transitioning into this new decade with a sustainable addition or remodel with the best contractors Los Angeles. Greenworks Construction is the team to realize your Construction Los Angeles visions. Contact us to get in touch with one of const our knowledgeable representatives today, and make your design dream become a reality.