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Industry Updates

Home Inspection: Everything You Need To Know

So, you just put an offer on your dream home and the seller accepted your terms. You are bursting with excitement and can’t wait to move in. Before moving in, and before signing any sales contracts, a home inspection is needed to determine the items that may need attention in your new home. Let’s take a look at what a home inspection is and its importance.

What is a home inspection?

A home inspection occurs after an offer is presented to the seller and accepted but before any sales contracts are signed. This inspection is a visual observation of the house and will help to identify any safety concerns, health issues, and even mechanical issues the house may have. An inspector will look for things that are not functioning properly or, not up to code with the state. It is important to note that a home inspector is not looking at the cosmetic items of the home.

A home inspection is crucial as it could save you thousands of dollars in unexpected repairs. 

What does a home inspection look at?

Inspectors have a list of things to check in the home, their job is to find defects and there are a number of major things they look for. This includes items such as:

  • Water damage
  • Roof damage
  • Plumbing
  • Pest infestation 
  • HVAC system issues
  • Foundation or structural issues
  • Fireplace operation
  • Steps, stairways, or driveway safety

An inspection is not a pass or fail exam, and again, it is important to note that the professional is not looking at the appearance of the house. The inspection is more detailed and will usually include checklists, summaries, photographs, and notes. The most important aspect of the home inspection is the recommended repairs and replacements. This will allow you the potential homeowner to determine if you want to move forward with the purchase or, potentially negotiate with the seller due to high-cost repairs that are needed.

How to negotiate after a home inspection?

After the inspection is complete the buyer and seller can negotiate the contract that was originally present or, the buyer can decide they no longer wish to move forward with the purchase of the home. Depending on the issues that were listed in the report the buyer could request the seller to complete and pay for the necessary repairs on their end or, they can even offer a credit from the seller so that they can complete the repairs. 

A good real estate agent can help to negotiate these terms further on the buyer’s behalf. There are instances where the seller can actually walk away from the buyers’ requests so it’s important to have an experienced real estate agent in your corner to help with this. 

Hiring a Home Inspector

Typically, as the buyer, you will be the one to hire the home inspector. You will want to arrange your own inspection so you can vet the inspector yourself and ensure there is no prior relationship with the current homeowners. The typical cost of a home inspection is around $300 – $500 depending on your location and the experience of the inspector. This cost is paid for at the time of the service. 

You can find home inspectors through the Dibbs marketplace which allows you to get quotes from multiple professionals in your area. You can then interview each potential home inspector and ask about their experience, training, and expertise areas. 

We would recommend taking a look at reviews as well and if you are still not sure which direction you would like to move forward with ask for references. There is no shame in doing your due diligence as this is an important step in the home buying process. 

All in all, home inspections are crucial to keep homeowners safe and are an important part of the home buying and selling process. Set yourself up for success with a good realtor and prior knowledge of the process to help with negotiations and potentially a better sale price. 

 

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Industry Updates

3D Printing in the Construction Industry

It may come as a surprise to some but 3D printing is not new technology. 3D printing, also known as additive manufacturing, was first created in the 1980s in Japan by Hideo Kodama. Kodama is responsible for creating the layer-by-layer approach to manufacturing. Despite his inability to file a patent for this technology, he along with a trio of French researchers, are credited for finding this technology. 

The patent for this technology did not come until 1986 by an American furniture Charles Hull. He submitted the patent application for the technology, and following in 1988 he founded the 3D Systems Corporation where he made the first commercial 3D printer.

Why does it exist?

3D printing is the process of making three-dimensional solid objects from a digital file. This process allows you to produce complex shapes using less material than traditional methods. SLA was the first 3D technology created. SLA is a high-powered laser that turns a liquid resin into a solid material. This is completed from the ground up in a layer-by-layer fashion. 

 

How is 3D Printin used today?

 

Today, the 3D printing construction market is rapidly growing. Statista shares that the industry is expected to grow at a compound annual growth rate of 17 percent between 2020 and 2023. This leaves a lot of room for growth and opportunities for those in the industry. The 3D market like many others includes an array of pros and cons when it comes to how it will be used. 

 

Benefits of this technology in the construction industry include the following:

 

  • Increase Speed – 3D printing allows for the building of homes or buildings in a matter of days as opposed to conventional construction which can take months or even years. According to Marco Vonk, Marketing Manager at Saint-Gobain Weber Beamix, “You save about 60% of the time on the Jobsite and 80% in labor.”
  • Design Freedom – 3D printing allows architects to create extremely difficult shapes that otherwise they may not have been able to create.
  • Waste Reduction – Because 3D printing is an additive technology, it only uses the amount of material needed for each job. 

 

The downside includes:

 

  • Labor Shortage – This is a prime example of technology replacing jobs of workers to save time and money.
  • Regulations – Digital Builder shares how there’s much uncertainty in this aspect of 3D printing in construction. Until laws and regulations are clearly defined, it’s unlikely that 3D printing will make too much of a mark in the construction sector. 

 

The unknown of 3D printing stops it from being such a mainstream way of life in the construction realm. As large companies such as BAM or Saint – Gobain continue to use this technology other companies will want to stay here as well. As the construction industry is one of the largest in the world, it is exciting to see new technology constantly created to help innovate and change the industry.

 

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Industry Updates

What to Expect for Lumber Prices in 2022

In 2021 we saw the housing industry boom, despite the global pandemic. The lumber industry, however, suffered. The demand for lumber was high but a lack of supply, along with an increase in tariffs, created tremendous inflation. 2021 saw the highest increase in pricing for lumber since 1949. So, what does this mean for lumber prices in 2022? 

According to the National Association of Home Builders (NAHB), increasing lumber prices are adding approximately $30,000 to the price of a new home. This is only adding to the insane increase that real estate has seen this year. The market can not bear more in the form of construction slow-downs. Already, 152,0000 single-family homes have been permitted but not yet started, this is a 43.4% increase from last year. 

What is Being Done About This?

 

The NAHB is taking the lead on this issue, and recently wrote a letter to President Biden. In this, they urged President Biden to direct the U.S. Trade Representative Katherine Tai to develop a new softwood lumber agreement. 

“In addition, we respectfully ask that you direct U.S. Trade Representative Katherine Tai to returns to the negotiating table with Canada to develop a new softwood lumber agreement. Ending softwood lumber tariffs once and for all would be a significant step forward in addressing the longest trade dispute in U.S. History.”

The housing demand is strong and residential construction is expected to stay at its current pace through 2023. This makes it imperative to resolve the issue of lumber prices.

In addition to the letter, the NAHB met with top Canadian officials, to discuss the Commerce Department’s recent action to double tariffs on Canadian lumber imports. This would increase tariffs from 9% to 18% which threatens housing affordability in the US.

What Does This Mean for Lumber Prices in 2022?

In the early months of 2022, expect to see lumber prices increasing again. Back in May of this year, lumber prices peaked at $1,515 per thousand board feet. We did see a slight decline for a few weeks however, the price is starting to steadily increase once again.  

All in all, a change needs to be made to make lumber more accessible and affordable in order to keep up with the high housing demands. Use the Dibbs app to ensure you are getting the best price from suppliers on lumber and additional materials. Learn more about the features of Dibbs here.

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Industry Updates

Lumber Prices Soar Due To Shortage

While the housing industry is booming the lumber industry is suffering. Demand for lumber is increasing and the lack of supply is creating a huge increase in prices. The global pandemic of COVID – 19 forced lumber production to shut down back in April of 2020. As if that wasn’t enough, in addition to the shutdown there was an increase in tariffs that were added to the cost of lumber as well.

 

How Will Lumber Prices Affect Homeowners or People Looking to Buy New Homes?

 

News19 shared an article that shared recent market data on the prices of lumber in the past months. The article states that “Lumber prices have more than quadrupled since the pandemic started,” With this information, some builders may suggest to homeowners that they hold off on the renovations they are looking to complete. Lumber is not only needed for the foundation of home construction but is also used in materials for cabinets, flooring, windows, and doors. This means that homeowners should expect to see an increase in prices for these projects as well. While there is no evidence that shows if this increase will stop any time soon the National Home Association of Builders provided the following facts:

 

  • The spikes in lumber prices have added nearly $36,000 to the average price of a new single-family home, and nearly $13,000 to the price of a multifamily home since April 2020

  • Lumber prices have increased nearly 50% since April which is the largest four-month gain since 1949.

  • The housing sector has been and still is a leader in the nation’s economic recovery. These high increases in prices can potentially hurt housing affordability for Americans.

In May of this year, the FLCP (Framing Lumber Composite Price) topped $1,500 per thousand board feet. This is nearly three times the pre-pandemic record. With prices increasing almost triple it’s no surprise that some projects need to be put on hold. With the uncertainty of what to expect in 2022 for the lumber and housing industry, you can best be assured that Dibbs is doing its part to keep you updated.

We understand that not all home renovations can wait. Some projects just need to be done now. That is why we created Dibbs. The app allows you to post your job and your budget and let the professionals come to you. Don’t spend time and effort comparing prices running from store to store when you can get all you need right on your phone from Dibbs. Let the contractors come to you and compete for your business with their best price. Download the app today on iOS