Double Agent Posted June 24, 2008 Share Posted June 24, 2008 A client of mine had a hail claim 2 months ago. Original estimate from a very reputable roofing company came in at $13,000. They decided to go ahead and get the work done this week. The new estimate...$19,904. Why? Petroleum cost. We were lucky enough to find a company that had the shingles in stock and gave us the old rate. Originally we thought the insured was getting screwed. We called around and found the same answer everywhere. Shingles are going up about 20% per month in this area. Quote Link to comment Share on other sites More sharing options...
wirehairman Posted June 24, 2008 Share Posted June 24, 2008 The demand for shingles resulting from severe weather over much of the country cannot be helping the prices, either. Quote Link to comment Share on other sites More sharing options...
cliaz Posted June 24, 2008 Share Posted June 24, 2008 The demand for shingles resulting from severe weather over much of the country cannot be helping the prices, either. +1.23 First thing that popped into my head as well. Quote Link to comment Share on other sites More sharing options...
Savage Beatings Posted June 24, 2008 Share Posted June 24, 2008 Just try buying a gross of Vaseline these days. Big Porn is going to need a bail out soon. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted June 24, 2008 Share Posted June 24, 2008 I had an adjuster out to our house two months ago, and he said I need a new roof. Unfortunately he hasn't gotten all the required paper work taken care of, so I may get hit with this. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted June 24, 2008 Share Posted June 24, 2008 You shouldn't get hit if you have replacement cost. If you don't have replacement cost....then you will get hit by it. Quote Link to comment Share on other sites More sharing options...
Double Agent Posted June 24, 2008 Author Share Posted June 24, 2008 I had an adjuster out to our house two months ago, and he said I need a new roof. Unfortunately he hasn't gotten all the required paper work taken care of, so I may get hit with this. Your insurance company will have to adjust the claim to reflect the new price. They cannot pass that cost to you. Quote Link to comment Share on other sites More sharing options...
Codwagon Posted June 24, 2008 Share Posted June 24, 2008 How many Mexicans does it take to roof a house? 30 if you slice them thin enough. Quote Link to comment Share on other sites More sharing options...
The Holy Roller Posted June 25, 2008 Share Posted June 25, 2008 Just bought 30 squares two weeks ago at Lowes. Over $1300. On sale. Athenae. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted June 25, 2008 Share Posted June 25, 2008 (edited) Have any of you checked metal stud prices lately? They are up 80% since January. I've got a job we gave budget pricing on in January, that bids next month, I can't wait to see what the drywall cost is going to be. Between the weak dollar and the damned Asians construction prices are about to skyrocket. I don't know Athenae muslim about residential construction, but I would have to guess with the cost of material skyrocketing, while it might make new homes sales continue to drop, I would think it would drive up the cost of existing homes. Edited June 25, 2008 by Perchoutofwater Quote Link to comment Share on other sites More sharing options...
muck Posted June 26, 2008 Share Posted June 26, 2008 ...so, if existing homes are going up in replacement cost, then there could be an argument that their resale value is going up, too... So, for those of us considering a refinancing, that is probably something to make sure that the appraiser takes into account when considering the current value of your home vs. houses that sold at $____________ a few months ago when the replacement costs were lower. ...hmmmm.... Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted June 26, 2008 Share Posted June 26, 2008 ...so, if existing homes are going up in replacement cost, then there could be an argument that their resale value is going up, too... So, for those of us considering a refinancing, that is probably something to make sure that the appraiser takes into account when considering the current value of your home vs. houses that sold at $____________ a few months ago when the replacement costs were lower. ...hmmmm.... You can try that.....but replacement cost has nothing to do with market value. If you have a 1900 SqFt house in the ghetto, and I have a 1900SqFt house in the suburbs made of roughly the same materials, they will carry the same relative replacement cost, but I am very sure that they will have very very different market value. Quote Link to comment Share on other sites More sharing options...
muck Posted June 26, 2008 Share Posted June 26, 2008 (edited) You can try that.....but replacement cost has nothing to do with market value. It may not have a direct and immediate impact, but eventually, replacement cost will be reflected in market prices. If you have a 1900 SqFt house in the ghetto, and I have a 1900SqFt house in the suburbs made of roughly the same materials, they will carry the same relative replacement cost, but I am very sure that they will have very very different market value. I believe that is primarily a function of the value of the dirt underneath each house... Edited June 26, 2008 by muck Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted June 26, 2008 Share Posted June 26, 2008 It may not have a direct and immediate impact, but eventually, replacement cost will be reflected in market prices. I believe that is primarily a function of the value of the dirt underneath each house... yes that is correct....and when an appraisal is done, it takes into consideration the location of the dirt underneath that house. In my ten years dealing in the P&C market, this has always been the case. Some homes insure for less than market value...some for more...depends upon the value of the location of the lot...school district....services...etc... Quote Link to comment Share on other sites More sharing options...
muck Posted June 26, 2008 Share Posted June 26, 2008 yes that is correct....and when an appraisal is done, it takes into consideration the location of the dirt underneath that house. In my ten years dealing in the P&C market, this has always been the case. Some homes insure for less than market value...some for more...depends upon the value of the location of the lot...school district....services...etc... My point being that if say: Lot 1 = -20% crappy part of town and a crappy market Lot 2 = -5% great part of town and a crappy market Identical houses = replacement cost is +30% due to increases in material costs ...based on a replacement value alone, that increase in replacement cost will impact 'value' as existing homes are cheaper than new homes based on cost of construction, increasing relative demand for existing homes, pushing their prices up... Quote Link to comment Share on other sites More sharing options...
H8tank Posted June 26, 2008 Share Posted June 26, 2008 How that saying go? "Look The fecal blemsish, no matter what arguement you think you are having, you are losing." Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted June 26, 2008 Share Posted June 26, 2008 How that saying go? "Look The fecal blemsish, no matter what arguement you think you are having, you are losing." are you familiar with stalker laws!!! Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted June 26, 2008 Share Posted June 26, 2008 My point being that if say: Lot 1 = -20% crappy part of town and a crappy market Lot 2 = -5% great part of town and a crappy market Identical houses = replacement cost is +30% due to increases in material costs ...based on a replacement value alone, that increase in replacement cost will impact 'value' as existing homes are cheaper than new homes based on cost of construction, increasing relative demand for existing homes, pushing their prices up... Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted June 26, 2008 Share Posted June 26, 2008 My point being that if say: Lot 1 = -20% crappy part of town and a crappy market Lot 2 = -5% great part of town and a crappy market Identical houses = replacement cost is +30% due to increases in material costs ...based on a replacement value alone, that increase in replacement cost will impact 'value' as existing homes are cheaper than new homes based on cost of construction, increasing relative demand for existing homes, pushing their prices up... OK, I see where you are going....yes, it is true that since the cost of new construction is going up, they have to sell the new houses for more...it will increase the relative value of other homes as comparable, even if the "other" home was built ten years ago. Do I have your statement correct? Quote Link to comment Share on other sites More sharing options...
muck Posted June 26, 2008 Share Posted June 26, 2008 OK, I see where you are going....yes, it is true that since the cost of new construction is going up, they have to sell the new houses for more...it will increase the relative value of other homes as comparable, even if the "other" home was built ten years ago. Do I have your statement correct? Si, senor. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted June 26, 2008 Share Posted June 26, 2008 Si, senor. You for the apostrophe and the squiggly line. How do you type the squiggly line anyway. By the way I agree with your argument, but it will not happen over night. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted June 26, 2008 Share Posted June 26, 2008 Si, senor. My only question is this....I understand somewhat how appraisals work(if there are any here please opine). But, back to my example of the ghetto and the suburb. If the new construction is happening in the suburb, then I can see the property value of the ten year old house increasing, but the comparable ghetto house would see very little appreciation? Since there is relatively little new construction in the ghetto. However, if the high costs last long enough, people will buy up the inexpensive ghetto buildings, fix them up, and then voila...no more ghetto!!!! Quote Link to comment Share on other sites More sharing options...
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