We’re hearing a lot in the news about inflation right now.

The inflation rates have been going up at record-breaking paces. Some of that is to be expected during a period of economic recovery following the COVID-19 pandemic, but there are concerns being echoed by some financial analysts.

Inflation refers to the decline of purchasing power of a currency over time, to put it somewhat technically. Basically, what inflation means is that you have less purchasing power with the same amount of money.

So, how does this affect real estate?

Home Construction Costs

Right now, one of the most obvious and direct effects we see of inflation on the real estate market is in the rising cost of the items used to build a home.

For example, for the past year, lumber prices have been rising. Those prices have added a significant percentage to the cost of new homes. That’s just one example of an item that’s used to build new homes. There are bricks, drywall, concrete and more that go into it. When the required items are more expensive for homebuilders because of inflation, those costs do ultimately get passed onto the buyer.

The fast rises in home prices have actually played a role in inflation being pushed to a 13-year high. Housing costs this year went up by 0.4% between just April and May. The rising home prices accounted for more than ¼ of the overall inflation increase in May.

Home Prices

As was mentioned above, if a home builder is paying more, then the buyer is going to be taking on the consequences of that inflation.

That’s not the only factor that means inflation is going to cause home prices to rise, though.

If the Central Bank increases the money supply in the economy, which is a big cause of inflation, then home prices go up as well.

Less Financing

Sometimes when there’s inflation, then debt is affected. Specifically, if inflation goes up, it’s more expensive to borrow money. With rising interest rates, then people might not borrow money at all. Then, when there are fewer home purchases being financed with a mortgage, economic growth may be affected.

Rent Price Inflation

The price of rent tends to go up with inflation and higher home prices.

Unfortunately, it’s not like rent is a discretionary expense you can cut out if you have to.

More than nine million renters are considered extremely low-income right now and are burdened by their housing costs. That means they spend more than 1/3 of their income on expenses related to shelter. Many of these low-income houses spend more than 50% on housing.

There may be more renters during times of high inflation, despite the increase in rental prices. This is because it can be harder to get a mortgage in high inflationary periods. An expensive mortgage also means less buying power, so it’s more likely that someone might continue to rent.

Existing Homeowners

What about housing inflation's effects on current homeowners?

Well, if you already have a fixed mortgage on your home, your cost of living with regard to your home isn’t going to change much. Your taxes and insurance might a bit, but still, not a huge impact.

You don’t see the change unless you’re moving.  

There’s a note of distinction to be made here, though. Inflation is not appreciation, which some homebuyers may confuse.

Appreciation refers to the increase of your property value over time. The value’s not increasing in relation to the currency. It’s increasing because of demand. Your home can appreciate more or less than the rate of inflation at any given time.

Overall, what this means is that, yes, real estate is affected by inflation in both direct and indirect ways.

The last year-and-a-half has been focused on home design. The pandemic has led people to spend more time in their homes than maybe they ever envisioned, and that’s meant a lot of home renovation projects.

Many people are focused on really making their homes completely their own, and that includes when it comes to their kitchen appliances.

With that in mind, the following are some of the appliance trends that are popular right now and can quickly turn your kitchen into your favorite room.

Customizable Refrigerator Doors

Samsung recently debuted a beautiful appliance in their 4-Door Flex Refrigerator. The refrigerator has customizable door panels. You can choose between classic colors like black and unexpected options like pink glass and navy blue glass. There are a total of eight color options, and you can mix and match each of the front panels on the front of the refrigerator.

In addition to being a chic, statement-making appliance, the refrigerator also has five cooling zones, an auto-filled water pitcher, and a complete beverage zone.

There’s another way you can customize your appliances too with BlueStar By Design. BlueStar has a reputation for color-matching appliance finishes, but now you can work with the company to fully customize your refrigerator and range with any graphic.

Hidden Appliances

While some people prefer that their appliances make a statement right now, for other people, they want them hidden altogether. Appliances are increasingly being included in kitchen designs in an integrated, hidden way.

There are a number of appliances being developed that are panel-ready.

Even in kitchens where appliances aren’t fully hidden, a lot of people are opting to put them under their counters to give them more countertop space and make them less prominent.

Professional-Grade Ranges

Since 2020 and into 2021 has given people a lot more opportunities to cook at home, whether they wanted to or not, it makes sense that there’s a growing interest in professional-grade appliances and, in particular, ranges.

For example, Signature Kitchen Suite has a collection of new professional-grade ranges with modalities that include a steam oven, induction, and sous vide.

Decorative Range Hoods

There seems to be a general trend in home design that’s focused on self-expression and doing what feels right for you. With that comes the desire to include a decorative range hood in kitchen design. That might mean something sculptural or colorful, for example, rather than the typical stainless steel range hood.

These hoods can be custom-designed in terms of not only materials and façade but additional features like lighting and dimmer switches.

The Use of Steam

Steam isn’t just popular for ranges and cooking. Appliances are increasingly using vapor to clean. For example, LG has their new QuadWash dishwasher with a TrueSteam feature. This feature can loosen any food that is still on a dish and it can also help reduce water spots.

The SuperSteam built-in wall oven from Sharp heats up at high temperatures so you can grill food without smoke.

At-Home Bars

Whether it’s a coffee bar or a cocktail bar, you might be interested in bringing a bit of the outside world into your kitchen.

Some people are adding wine refrigerators and even wine dispensers. The Dacor company has an integrated wine dispenser that lets you store four open bottles for up to 60 days. Bartesian has cocktail makers that go onto your countertop and create the perfect libation.

As people return to entertaining, a lot of these appliance trends are likely to continue serving them well.

Inspections are par for the course when selling a home, but when the inspector comes back and says something is wrong with the plumbing, sellers either panic or shrug it off and assume that it’s the buyer’s problem.

Most buyers won’t commit to buying a home until after it’s been thoroughly vetted by an inspector, and if there are problems, the inspector will certainly find them.

Making repairs after an inspection can be a hassle and will certainly eat into your profits, but what repairs are you required to make?

Check the Contract

The first step is to check your contract to make sure that you haven’t locked yourself into making repairs that you don’t want to make.

As a general rule of thumb, you don’t want to sign a contract until you fully understand its obligations, especially when it comes to repairs.

And here’s the good news: you don’t have to fix everything that the home inspector say could be improved. The report is not a to-do list.

Repairs typically fall into one of three categories: ones that are required, ones that are optional, and ones that are up for debate.

Required Repairs after a Home Inspection

Some repairs will be required before lenders will release funds to make the purchase. Typically, these repairs are related to structural defects, safety issues and building code violations.

Safety issues may include mold or mildew that is discovered during the inspection process. Water main leaks and damaged plumbing systems that go unrepaired can lead to mold growth.

“Broken water mains can cause leaks to go undetected and result in high water bills, mold, mildew, and rot, which is why routine plumbing maintenance is recommended for all of our clients on a yearly basis,” says Bob Oates Plumbing.

If a home inspection reveals such problems, you will likely be responsible for repairing them.

Many sellers choose to give the buyer a repair credit, which allows them to make the repairs themselves. The benefit to going this route is that you don’t have to oversee the repairs.

Repairs that are Not Required

Damage due to normal wear and tear or cosmetic issues doesn’t have to be repaired by the seller.

Some contracts will expressly state that the buyer cannot request cosmetic repairs and can only ask for the required repairs listed above. But state laws will also affect the seller’s liability for any issue uncovered during an inspection.

Make sure that you understand your local ordinances to know which repairs will be your responsibility.

Negotiable Home Repairs

Somewhere in between the required repairs and optional ones are repairs that are negotiable. How they’re handled is really dependent on the market.

If it’s a seller’s market, the seller has more leeway to call the shots. If it’s a hot seller’s market, the contract may state that the buyer will purchase the home “as is” or may only request an information only inspection. Such language in the contract would absolve the seller of any need to pay for repairs.

In a normal market, a seller would not be able to enlist such hard and fast rules.

It’s up to the seller to determine how to negotiate these repairs. Some offer a home warranty, while others may choose to offer something of value to the buyer.

 

Most homeowners have a desire to decorate in a manner that suits personal tastes while also being visually appealing. All those home magazines make it look so easy, but can also come with steep prices. When you are limited to a budget that’s somewhat smaller, you can still achieve the look you desire without breaking the bank.

Reuse

Before you start buying new furniture, bedding, and fixtures that will quickly eat through your budget, start by taking an inventory of what you already have. Think about ways that things can be reused. Simple furniture pieces can be painted or even just have the hardware changed out that will change the way a piece looks.

Many types of furniture can serve a different purpose. An unused dining table can become a desk. That old sofa table can be used as a mobile bar if wheels are added. Even a broken dresser can be salvaged and transformed.

Simple Appearances

Bigger is not always better. Sometimes a few simple changes can make a big impact, with minimal expense. Updating paint colors or just adding an accent wall is one way. You can also change out throw rugs and light fixtures. A small thing, like changing lamp shades or the glass covers on your ceiling fans or overhead lighting, can have a big visual impact as well.

Add covers to pillows and duvets to bedspreads. But what is a duvet? Think of the duvet like a pillow case for bedspreads. You can put an existing bedspread inside the duvet and create an entirely different look. Duvets and pillow covers can be purchased in a variety of patterns and colors, but you could also make your own if you want something more custom.

Thrifty Shopping

If you still plan to make some purchases, consider used pieces. Second-hand or thrift stores are often great places to buy décor items without spending a fortune. Wholesale, liquidation, and salvage places can also help save some money. Remember to consider possible alternate uses for items as well.

Keep your eyes open for things that people are trying to sell, too. Visit yard sales and flea markets. You can find a wide variety of items that people are selling for low prices. Swap meets are also good places to locate what you might need, while giving you the opportunity to get rid of something that no longer suits your tastes or needs.

Artwork

An alternative to pricey reprints, or even more expensive originals, is to create your own artwork to display. Try your skill at painting or decoupage. Frame your child’s latest art piece. You can even find free artwork to print and use at home. Spruce up some old wooden frames. Things like foiling and sponging can help you turn drab frames into decorative displays.

One at a Time

The most important thing to remember is to take it one step at a time. Try not to redecorate every room at the same time. You may need to divide your budget into chunks for each room that you want to redecorate. If you go room by room, you may find that you have some money left over that can be used for other rooms. By going one room at a time, you can avoid getting overwhelmed because you have taken on too much at once.

There are numerous options for redecorating on a budget, regardless of how small that budget might be. In your redecorating efforts, you can make huge changes just as easily as you can make small ones, both impacting the final result of a room. In the end, your home can be a display of the things you enjoy in an atmosphere that best suits you.

Keeping the house together during the selling process is a challenge. Making sure everything is just right for showings and open houses can be exhausting and overwhelming Throw kids into the mix, and things can get downright chaotic. Fortunately, a few small decor choices can help conceal kid clutter—changing your “for sale” sign to “sold.”

Hide in Plain Sight

With overflowing toy boxes and tea-party set-ups overtaking the living room, it may be unrealistic to banish all kid stuff to other rooms. Instead, make use of your furniture’s built-in compartments and drawers. Have a storage ottoman next to the sofa? Fill it with everything from action figures and dolls to coloring books, art supplies, stuffed animals and more. Divide the credenza in the family room so that your little ones can store toys behind its closed doors. Accent the open shelves with ceramic vases, family photos, decorative carafes and other appealing decor items.

If your built-in storage is already in use, opt for two or three woven baskets with lids instead. Place them wherever you want, whether it’s next to the loveseat or on the bottom shelf of a console table. Buyers will be too busy appreciating your home’s cleanliness and open floor space to think about what’s inside.

Hide Within Reach

Families in smaller living spaces might consider another strategy—underbed and attic storage. While the underside of your child’s bed may be already home to all sorts of tchotchkes, encourage kids to neaten it up with rolling plastic or rattan storage bins. Discreetly stow away everything from dress-up clothes to seasonal clothing in multiple containers. Slide them out of sight, then help your little one make the bed with an oversized quilt that conceals what’s hidden below. The best part? These containers can still be used after moving into the new bedroom or playroom.

For toys that are too big to fit in this space, such as kids’ teepees and play tents, consider collapsing them and stowing behind a dresser. If the dresser has legs that makes it easy to spot what’s behind it, opt for a chest instead.

Rotate Toys in Longer-Term Storage

Consider storing bins of toys longer-term and swapping them out every few weeks. In addition to the attic and basement, the back corner of a deep closet is a great place to stack storage tubs filled with everything from building blocks and board games to miniature cars and pull toys. Strategically hide them behind long coats so a quick peek inside the closet doesn’t give anything away. Better yet, switch out the storage tubs for suitcases. Rotate the toys in storage every few weeks--kids will have renewed interest when they come out of hiding.

Minimize and Add Some Style

Rather than attempting to conceal every toy, consider downsizing. Prior to the first showing, help your little one sort through toys, determining what still gets played with and what doesn’t. Sort into “keep,” “donate,” and “throw away.” This streamlines the cleanup process and makes it easier to stow away what remains. Bonus? You’ll have less to move when the time comes. For every item your children give up, consider rewarding them with small change or a trip to a favorite restaurant or ice cream shop.

For kids’ areas like bedrooms and playrooms, embrace the playful nature and just add a little style. Choose bookcases and desks with useful cubbies and shelves, and dress up the space with vibrant and unique artwork. Inspire imagination in potential buyers (and keep the space useful while your home is on the market) by choosing a few colorful supplies and knick-knacks to display.

Strategically rearrange home decor to hide kids’ messes while your house is being shown, and potential buyers will see a clean space that they’ll want to make their own.

Heather Cordonnier is a writer for Crate and Barrel. She specializes in sharing her style-savvy tips on DIY and lifestyle blogs.

I was with a friend the other day, as we both went to an exhibit at the convention center. She stopped and wanted to ask a question about a friend of hers at work. It seems her friend was extremely studious about his money. He was a devout saver. She told me that he would literally buy a bucket of chicken and eat that for lunch throughout the work week. Instead of eating out for lunch, he saved his money to eventually buy a home instead. How much did he save? A little over $100,000 over the years. She told me he was going to make a nice down payment but then later on he was going to take the remaining amount and pay down the mortgage therefore reducing his monthly payment. She asked if that were the right strategy.

Of course, I didn’t personally know the situation nor him at all, just what my friend had told me. But I was able to give an answer. I asked if the loan he was going to get was a fixed or an adjustable. She of course didn’t know but I told her to give him some advice or even to feel free to contact me directly for a conversation. I gathered just from his frugal nature he would be taking out a fixed rate loan due to the continuing low rate environment. 

From what I understood about his financial attitude, he wouldn’t want to take on the additional risk of rising interest rates at some unknown point in the future. It’s important to know in advance, especially if he hadn’t already bought a home and was waiting to make a sizable principal reduction, because making an extra payment down the road, at any time, has a different outcome depending upon if the loan taken out was a fixed or an adjustable mortgage. Why the difference?

When paying extra on an adjustable rate loan, it does in fact reduce the monthly payment because the new payment is calculated using the lower loan balance along with current market rates. But that doesn’t happen with a fixed rate loan. With a fixed, the payments remain the same throughout the life of the loan. Someone can have a 30 year fixed rate loan of say $400,000 with set monthly payments. It’s called a fixed rate for a reason, right? Okay, now what happens if that person makes a principal reduction of $100,000 and the loan drops below $300,000. Guess what? The payment remains at the original amount. Yes, the loan balance is reduced but the payments aren’t recalculated.

This is why it’s important to know whether or not an adjustable or fixed is better. Making extra payments is a good thing because it pays down the mortgage sooner. But if someone does have a plan to pay down the mortgage at some point in the future, perhaps an inheritance will ultimately arrive or maybe an annual bonus from work will be used to reduce the loan balance. With a fixed rate program, the payment is not affected. Just the balance.

Question: What is the difference between the CC&R's and the rules and regulations? Even if the rules and regulations were never filed on the public record, would they hold up in a court of law?

Answer: CC&Rs stands for "Covenants, Conditions & Restrictions." CC&Rs include the Declaration, Bylaws, Rules, Regulations, Policies and Resolutions.

As far as standing up in court, no one can predict the outcome of a judge or jury decision. But the HOA has a responsibility to make sure all rules, regulations and policies are in writing, distributed to all owners and residents and easily accessible when needed (website recommended for 24/7 access). If the HOA's rules are fair and uniformly enforced, most judges will rule for the Board.

Question: I am an HOA Treasurer and have been attempting to implement spending controls. We have two Board members who regularly purchase items for the HOA and want to be reimbursed. My concern is that expenditures are unpredictable and hard to track. What do you think is a reasonable policy?

Answer: Your HOA sounds like it has had a long history of directors spending money as they saw fit. The first question that comes to mind is: Has the old routine caused budget overruns? If yes, you have a sound basis for your controls. If no, you may be making much ado about nothing.

That said, it is not common for random directors to routinely spend the HOA's money. In self managed HOAs, the President and Treasurer generally handle payments, occasionally reimbursing a director for an HOA expense that can't wait for the normal payment process. Ideally, if you have a hired manager, all expenditures should be routed through the manager. It is much easier to hold an employee or contract manager accountable than a fellow director.

Your biggest obstacle doesn't seem to be opposition to good financial management practices, but perception that such is not needed. Getting a barge to change course takes time. Continue to press for change. The Board has a fiduciary duty to run HOA business in a business-like way.

Question: I recently took over professional management of an HOA which, I just discovered, has over $70,000 of unpaid water bills. The water department has threatened to shut off service within 48 hours. The Board directed me to impose a special assessment of $1000 per unit without a meeting or member vote. Can an emergency special assessment be imposed without member approval?

Answer: You need to read the governing documents to see what authority the Board has to raise special assessments. Even if the Board has authority to do so, proper and reasonable notice must be given to the members and time to raise the cash.

If a special assessment requires approval of the members, a member meeting needs to be called with advanced written notice. The meeting must have a legal quorum and a legal majority vote as defined by the governing documents. You may be able to pull this off by mail in ballot if your governing documents allow it. But none of this could possibly take place within 48 hours.

The Board needs to make immediate and adequate payment arrangements for the water bill, perhaps by getting a short term loan from the bank (and quick). Or, you might be able to get the water department to leave the water on if money is on the way (special assessment or loan). But they will, no doubt, want to see the written evidence (letter from bank, copy of special assessment notice, etc.).

The bigger question is, if this HOA has allowed things to get so bad that basic utilities can't get paid, what other fires are you going to find that they want you to put out? This crisis didn't happen overnight and the Board likely has others waiting in the wings. Unless you are getting paid extra to deal with these special circumstances, you need to seriously evaluate whether this is an account worth your time.

Saving money is great. But saving money can also prove problematic. While a piece of furniture that’s not used a lot or a knickknack that is not prominently displayed might be fine, you want to be careful when pinching pennies if it means compromising on quality.

Furniture

This is a mixed bag. You can get away with an inexpensive coffee table, and you may be able to score a killer deal on a dining table that looks far more expensive than it is. But when it comes to upholstery, proceed with caution—especially with large pieces. Cheap textiles can pill, rip, wear out easily, and stain permanently. Plus, the material is often scratchy and uncomfortable.

“The sofa is one of the most significant items you’ll ever buy for your home. It takes up a lot of visual space, it’s important for comfort purposes, and it’s something you could have for two or even three decades,” said The Spruce. “Look for something made with high-quality materials such as kiln-dried hardwood and eight-way hand-tied spring construction, and purchase a classic style so that over the years it can be recovered if you want to update the fabric and give it a different look. Remember the rule that a high-quality sofa should last around 25 years while one of average quality should last about 10.”

Art

Many designers will tell you that money is no object when it comes to art. “Unlike a rug that may get dirty in a couple years or a glass that could end up breaking at your next dinner party, the art you invest in is likely to stay with you for many years, or maybe even a lifetime,” said Real Simple. “The key is to take your time finding art you love, that you’ll want to spend years living with, and that fits your style.”

We agree with all of that, except for the “need to splurge” part. It’s gonna be awhile before we’re playing with Picasso money. In the meantime, we love finding great new resources to buy inexpensive art—especially those that allow us to support emerging artists instead of buying stuff that’s mass-produced. From Society6 to Minted to to Etsy, there are a number of places you can find great stuff without a great expense.

Flooring

Skimp out on your flooring and you might find yourself having to redo it soon—or living with the consequences of a poor choice. Everything from a wood product that is made too thin, and therefore is damaged easily, to poor adhesive, to carpet that doesn’t have the quality to stand up to kids, pets, or everyday use can cause problems sooner than you may expect.

Rugs

“One of the best items to buy cheap is an area rug, Gen Sohr, one half of the husband-and-wife team behind Pencil & Paper Co., a Nashville-based interior design firm, said to Real Simple. “I think there are so many wonderful area rug options that are a complete steal. And really who wants to break the bank on something that's going to eventually get soiled and need to be replaced?” she says. For an option that’s both affordable and durable, she recommends a natural sisal rug, which also hides the appearance of dirt. A flatweave wool rug is another popular option, and Sohr recommends finding deals on Overstock.com or Rugs USA.”

Mattresses

It can be tempting to go cheap on a mattress simply because it so expensive. But, if you really spend a good third of your life in bed, it’s worth it to pay for quality. If you can’t pay outright, it’s usually possible to get a zero-interest payment plan from a mattress stores if you have decent credit.

You just heard those magic words: “We have a deal.” Now, you just have to get through escrow and you can move on to the next stage in your life. That means making sure your home doesn’t end up back on the market. Here are 6 steps you can take both before you list and during the escrow process to make sure everything goes smoothly all the way to closing.

1. Carefully consider your sales price

If you’re working with an experienced real estate agent, he or she should have a recommended pricing strategy based on area comparables. Pressuring your agent for a higher sales price could cause the home to sit on the market and, if you do get an offer, the appraisal may not match the sales price. “If the appraisal comes in too low, the seller will have to lower the selling price or (the buyer) will have to pay cash for the difference,” said Investopedia.

2. Look for liens

"Overall title issues account for 11% of closing delays and may come to you as a surprise,” said Homelight. “Sometimes clearing up title is as simple as verifying that a debt has been paid and recorded correctly, the same way you would clear up errors in a credit report. Other times, addressing outstanding debts can take months to settle. Before you put your house on the market, be sure to pay off any debts, loans, and taxes that may show up as a title defect against your property.”

3. Disclose, disclose, disclose

Sellers are legally required to disclose all material defects in the home, so trying to hide issues can backfire. “Any problem with the property will be uncovered during the buyer's inspection, so there's no use hiding it,” said Investopedia. “Either fix the problem ahead of time, price the property below market value to account for the problem, or list the property at a normal price but offer the buyer a credit to fix the problem.”

4. Be reasonable and willing to negotiate

It’s easy to get stuck on your list price and not want to come down even one dollar. But if things show up in the aforementioned inspection report—things the buyer has a legitimate reason to request fixes—sticking firm to that price could cost you this the deal.

5. Limit contingencies

If you’re having trouble selling your home and the only buyer who’s come along in three months has two dozen contingencies, that’s one thing. If you have a couple of offers, with one who doesn’t need to sell their other home before securing financing on yours, it’s an easy call, right? Obviously the offer price and other factors like the overall financial strength of the buyer are important, but the great thing about having limited contingencies is that you have a clearer path to closing.

6. Stay friendly with neighbors

The last thing you need is for the grumpy guy across the street to make a fuss because of increased traffic on the street during showings, inspections, appraisals, etc. and scare off a timid buyer. Maybe the situation warrants a knock on the door of neighbors who have a rep for being testy. Bring a plate of cookie or a gift card to Target for their troubles and you may be able to pacify them.

When it comes to renovating your home or building a new one, the journey to your desired end result may not be any fun.

The “construction journey” could be very stressful, full of your compromises, packed with delays, infused with lower quality, and more expensive than agreed to. The renovation or construction could take a significant toll on you and your family—figuratively and literally. Would that lessen your enjoyment of the end result—your intended dream home?

When you hire a contractor or builder for a home renovation or new build, will you be as satisfied with the outcome if it is achieved in spite of what the contractor/builder did or did not do, as you would be if they did everything initially agreed to?

What?

If the construction process was NOT a smooth, low-stress professional journey to achieve exactly what you asked for, would you be just as pleased with your new home?

If it is a troubled journey and you are satisfied at the end, will that satisfaction be based on your relief that the negative journey is finally over, instead of genuine satisfaction with the end result? Pleased to have the construction behind you, how will you feel about how much you paid or are expected to?

All professionals are not created equal in any industry. Even when they achieve similar or even better end results, they may have arrived at those end results very differently. Some of the pathways may be inadequate or flawed.

This divergent-path reality has earned residential in-fill construction and renovation a less-than-stellar reputation with customers and surrounding neighbors because of some contractors and builders, not all.

Which contractors and builders would you prefer to work with?

1. Patch Or Fix It Later vs Do It Right The First Time

Some contractors and builders seem to believe they are NOT responsible for “unpredictable” problems, so they do not invest a lot of time and effort anticipating or predicting problems. Quick fixes, cover-ups, corner cutting, and work-arounds are their preferred solutions. Any problems are the customer’s problems and expense.

Others have developed systems, procedures, and contingency strategies to minimize the “unpredictable” and keep upsets and extra costs to a minimum for customers. Clear communication is part of their stress-reduction approach. Proactive approaches increase flexibility and enable timely course corrections to save them and customers time and money. Your end result remains a clear target in all they do and don’t do.

2. Collateral Damage vs Anticipation and Prevention

Some contractors/builders become known in an area because they leave a trail of collateral damage and frustration behind on their projects. Adjacent neighbors are frequent recipients of their shoddy worksite standards, destructive practices, shady deal making, and mediocre project management.

Their assurances of “I’ve got lots of insurance” often mean they are not overly concerned about damage to adjacent properties and buildings because insurance will patch things up. They are not overly concerned if the end result is not to the satisfaction of the owners, adjacent owners, and other neighbors. “It’s construction and sh*t happens,” is their motto.

Other contractors/builders undertake the required work for their customers with care not to damage adjacent buildings and properties. In planning out the project, they anticipate potential issues with adjacent buildings, fences, or trees. Their goal is to minimize or eliminate peripheral or collateral damage while creating the best end result.

3. Substandard & Profit vs Quality & Reputation-Building

Some contractors/builders excel with high-pressure sales techniques and unethical approaches. They target naive, lazy, or bargain-hungry customers who fall prey to flattery and fast-talking.

If your interview and reference-checking skills are inadequate, they may be able to get you to sign up. These methods keep unscrupulous businesses going even when they leave a trail of unsatisfied customers and angry adjacent neighbors—perhaps even lawsuits—behind them.

Further, their construction workers and trades people may be under-paid, under-skilled, and forced to work in unsafe conditions. These deficiencies can undermine quality and cause delays.

Truly professional contractors and builders are intent on building a strong local reputation for reliability and quality. Their track record with customers and adjacent property owners is their “social proof” of quality. Over the years, these professionals gather together teams of skilled workers and subcontractors whom the contractor/builder is prepared to stake their reputation on.     

Industries are waking up to the value customers place on their customer experience of dealing with a company and its professionals. 

The “construction journey,” just like the “home buying journey,” should hold significant value to achieve customer satisfaction. In residential construction, just like real estate, this means that ending up with an “acceptable” home may no longer be enough to stop the homeowner questioning the value of the professional’s personal approach, professional expertise, services, and the overall cost. This dissatisfaction may erupt online and over social media, possibly canceling out reputation gains and referral possibilities.

To achieve your desired end result with as little stress as possible and within the agreed period and budget... Communication is Key

While you are shopping around for a contractor or builder, consider how well they communicate. At this stage they are striving to earn trust and get your money. If they are difficult to reach, don’t follow up as promised, and use vague “trust me it will all be fine” responses to your questions, do you think things will improve when they have your money?

Clarify Exactly What You Want

You’ll have to accurately communicate your essential details to the selected contractor/builder who will in turn communicate their process and their price to you.

The end result will exist in two sets of minds—yours and theirs. What is the end result you want: how many rooms will be dealt with, what will be demolished, what will be replaced, what the final finishes will be...exactly how you want this project to turn out and at what price. If you are not clear what you want, how can the contractor/builder be?

Establish Common Ground

Clarifying what you mean when you say a “kitchen with white cabinets”—along with everything else you want—involves clarifying how the contractor or their representative/salesperson interprets what you say.

Creating your set of building plans takes time—time spent creating benefits for you. There are thousands of seemingly small decisions and many big ones to make. Many are interconnected in ways you may not fully understand.

That’s where sharing an understanding of your desired style and level of quality assures things fall into place…style of cabinets, height of doors, sink location and type, stove location, style of door knobs, finishes, colors…and on it goes.

Get It In Writing

Agreements in writing are more enforceable in law. What if things go wrong and you want your money back or damages paid? What’s your proof? Without a written agreement clearly stating what both parties agreed to, your case is harder to prove.

If you are “satisfied” with the final result, will you be ready to pay the entire amount even if there were stressful incidents, unwanted compromises, suffered inadequacies, and repeated delays?

If that sounds bad to you…Consider how you’d feel if you are NOT satisfied with the final result and had all these problems?

Investing time and effort to set yourself up for success from the start is extremely valuable.

For more on adding Professional Value, visit PJ Wade’s blog: What’s Your Point?