With home prices and mortgage rates remaining high this spring, many homeowners have decided to remodel their existing homes instead of moving to a new one.
But if you are thinking of doing a remodeling job this year, you should be aware of potentially higher costs, especially with tariffs threatening higher prices on materials and appliances.
Contractor Hannah Wells, owner of R.E.P. General Contracting, is seeing more interest in updated kitchens and baths.
Among the hot trends she is seeing are white quartz counters.
"They have lighter colors with prominent veining," she said, pointing to a brand-new quartz counter in a kitchen she is updating.
Another hot kitchen trend, Wells says, is expanding to a double wall oven.
"You're able to cook your Thanksgiving turkey and your sides at the same time," she said.
Unfortunately, the cost of gutting a kitchen down to the walls and redoing it continues to rise.
"It can cost anywhere from $40,000 to $100,000, depending on the taste of the client," she said.
Wells says she's already seeing price hikes on fixtures from Europe and China.
"Appliances and tools that are made outside the country are already starting to see a hit," she said.
Watch as contrator Hannah Wells shares tips to save while remodeling:
So far, that is not slowing down interest in rehabbing.
With mortgage rates still high enough to keep some people out of the market, Jessica Lautz with the National Association of Realtors says demand for home renovations has grown over the past two years.
"When we look at remodeling spending, it just seems to be going up," Lautz said. "Maybe you have to reimagine one room that was used for one purpose, and now that's changed."
How to keep your costs down
So how can you keep those prices in check?
Wells suggests buying appliances with cash-back credit cards.
"If you can get 5% cash back on a large purchase, like brand new kitchen appliances, you can offset that a little bit," she said.
And if the budget is tight, Wells says you can redo just your cabinet doors, saving thousands of dollars.
"If your cabinets are good quality," she said, "I recommend refacing the cabinets or just repainting them."
Finally, she suggests you lock in your price now with a reputable contractor. She says you may regret waiting for prices to fall.
“It’s inevitable costs will continue to go up,” she said.
And that way you don't waste your money.
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