Business Resources to Navigate Rising Material Prices
Contracts
Escalation Clause for Lumber Materials: NAHB recommends including an escalation clause in contracts that indicates if lumber prices increase by a certain percentage, the customer would be required to pay the extra costs.
Appraisals
Understanding Appraisal Approaches: Appraisers can incorporate three approaches to determine the value of a property: the sales comparison, cost and income methods. Learn how the cost approach can help builders.
: Scott Reuter, single-family chief appraisal officer at Freddie Mac, notes the importance of this relationship and provides additional resources in a recent blog post.
Insurance Policies
Could Rising Materials Prices Leave You Without Enough Insurance Coverage? As home builders and remodelers adjust to soaring materials prices, one area that may be overlooked is the impact of prices on a project’s insurance coverage.
Community Outreach
NAHB has resources available to share with your community to demonstrate how rising material costs is hurting home buyers, builders and the housing industry.
