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7 Tips for Estimating Remodeling Projects With Rising Lumber Costs

Massive increases in lumber prices are causing project estimates to go up exponentially. Here, a leading NAHB remodeler reveals how he is handling the issue.

March 08, 2021
Lumber yard inventory check

Lumber prices have increased by as much as 180% since this time last year, yet few homeowners are aware of this. All they see is a higher bid, or worse, a change order they weren't expecting. Here, a leading NAHB remodeler reveals how he is handling the issue.

1. Get suppliers to lock in the price for 90 days. 

Without at least a 90-Day guarantee, homeowners and remodelers could be blindsided by exponential increases in lumber just a few weeks after the initial estimate. 

2. Don't underbid. Advertise transparency as a strength. 

A low estimate may get a homeowner through the door, but a surprise price increase won't keep them happy. Instead, give a fair estimate and explain that it may be higher than other options, but your company is being honest about the volatile material situation. 

3. Use the National Association of Home Builders and other sources as educational tools for homeowners.

By giving homeowners easy to digest data, remodelers can give themselves credibility and win over clients. 

rising price of lumber for home building

Watch the video to learn more and hear the other four tips, plus a bonus tip, on navigating rising lumber prices as a remodeler. 

 

 

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Comments

Comments

Add an escalation clause. Yards won’t lock price for 90 days. Maybe 7 days if your fortunate.
Kalamazoo Mi.

As the general contractor that sits across from the consumer and tries to explain why the material cost is pushing their dream home out of reach is very frustrating. Thank you for sharing these tips! It is extremely helpful.

https://www.customconcreteholland.com

These are great tips! Thanks for sharing how to go about structuring a deal during these hard times!
John - <a href=“https://treeserviceauburnal.com//”>Stump Grinding Auburn AL</a>

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