Timely announcements of various matters potentially affecting our clients.
January 30, 2021
Planning, Patience, and Perseverance:
3 Keys to Pandemic House Projects
As Covid-19 continues to run its course, we see plenty of press about how people are adapting, often through lifestyle alterations and modifications to their living environments. Whether these changes prove to be real and lasting—or just temporary workarounds—is a matter of speculation. However, on a down-to-earth level, what remains constant is the necessity of determining where and how you want to live, what choices you’re willing to make, and how basic supply-and-demand principles may affect your plans.
For affluent, educated people—who are better positioned to weather these trying times—the biggest change is the advent of remote working and learning. Suddenly, family members require more spatial differentiation and privacy. The shortcomings in their living environments become obvious, and in some cases, families are resolving issues by moving to new homes, although we observe more people gravitating to improvement rather than replacement strategies. As they plan modifications to accommodate new needs, they hope to save money by leveraging their structure’s existing value, while eliminating churn—the costs of sale and repurchase—decisions that require intensive evaluation. In some cases, though, it is wiser to sell than to remodel.
Inevitably, all of the changes trigger higher levels of construction activity, with exceptionally low interest rates providing the impetus. However, there’s an ironic push-pull: The pandemic that’s causing greater demand is also impeding supply, aggravating access to building materials because of shutdowns and cutbacks, causing unpredictable labor shortages through quarantines, which in turn trigger shipping and scheduling delays—all of which contributes to higher costs.
So, a word to the wise: If you’re contemplating a project, start planning now, and be prepared for an extended completion process. Included with this bulletin are some of MasterWerks’ recent past, current, and future projects. Each reflects our clients’ reconfigured priorities, as well as our commitment to making the best use of spatial and financial resources, while crafting homes that seamlessly blend new and existing features with their surroundings.
Home Renovation Strategies: A Response to Rising Home Prices
There are certainly other explanations for the shift towards renovation, not least of which is the lack of homes available for purchase in midrange price categories, as well as generally higher prices overall.
Consider these recent statistics, per the Edina MLS: As of January 18, 2021, a total of 81 single-family homes were listed for sale, with 52—or 62.4%—priced above $1 million. The average list price of all single-family homes for sale was $1,352,926.
Conversely, the MLS listed 45 homes pending sale, with just 17—or 37.8%—priced above $1 million. The average list price of all single-family homes in Edina that were pending sale was $1,044,608. The difference in price between the homes waiting to find buyers and the homes pending sale was $308,318.
The math supports our past observations at MasterWerks: Even in affluent Edina, there is a limited appetite for homes in the top price category. So, a fully informed, price-wise approach to renovating your current home may be the most strategic solution. We have the resources to assist you in determining the best tactics from the standpoint of value-engineered investment.
Planning and Design
From bathroom updates to full replacement and commercial projects, we provide thoughtful design solutions, noted for timelessness, functionality, and informed decision making. That’s why clients are keeping us busy, and we expect the pace to continue. So, if you’re interested in working with MasterWerks and would like to get your project moving, please contact us as soon as possible.
These recent projects show a decided preference among our clients for transformation and retrofitting, as do the majority of the many projects in our pipeline.
New Replacement Home
Classic design and craftsmanship in an exceptional location.
Transformation and new addition deliver an exceptional one-floor lifestyle.
New Accessory Structure
Convenient poolside cabana with an additional garage.
Remediation to Facilitate Resale
Correction of moisture damage to framing, insulation, and stucco.
Complete Interior Reprogramming
Total redesign includes all requisite contemporary features.
Completely reconfigured to meet today’s lifestyle requisites.
Reprogramming Interior Spaces
Improved flow, function, and livability.
Complete New Master Suite Addition
Providing enhanced comfort and convenience.
Deferred maintenance rectified throughout.
Premier custom-rebuild on a superb site with pond views.
Reformatting a 50-Year-Old Floorplan
Reconfigured for a young family’s needs. New mechanicals and finishes throughout.
New Master Suite and Garage
Improved functionality, convenience, and livability.
New Addition with Exterior Re-Design
New second floor. bed, bath, and playroom with cosmetic exterior updates.