SAN DIEGO (KGTV) - The cost of a home remodel is rising and that’s due to many factors, says Derek Harms, President of We Buy San Diego.
Harms attributes the increasing prices to five main factors, calling it a perfect storm.
“It comes down to really five things: you have inflation, you have increase in commodity pricing, you have a supply chain issue- it’s hard to get these items into ports right now - you have a labor shortage, then you have all this demand,” said Harms.
Harms’ investing company buys homes to resell or rent, usually purchasing about three homes per month. They typically have between ten and 15 homes in their inventory.
His business has given them a front-row seat to this “perfect storm.”
He said simultaneously, he’s also seen an increase in homeowners wanting to renovate their houses after spending so much time at home during the pandemic.
“It placed a new value on how people like to live inside their home and what home means to somebody,” he said.
This means that the average homeowner is now feeling the impacts of the rising costs. To tackle this, Harms has suggestions.
He says if anyone is purchasing items like garage doors, lumber, appliances or windows, get those orders in as soon as possible to prepare for potential delays. He also encourages people to do as much of the labor as possible, adding that YouTube is a great resource for learning how to DIY.
“Can you lay your own flooring? Can you install your own countertops? Can you install cabinets?”
For anyone who needs to hire a company or labor, try to find someone through a personal referral.
“It may take a few phone calls and some digging in and finding the right people, but it has to be referral-based because if it’s just a name you’re calling off google, the pricing you’re going to get is going to be insane, you probably won’t get the same quality of work,” he said.
Harms says the average cost of a home remodel is about $100 per square foot. He added that for the time being, these shortages will likely remain a reality for people living in San Diego.