Homeowners who take on remodeling projects gain not only equity and more resale value in their home, they are also more likely to find satisfaction and enjoyment from their home, according to a new report from the National Association of Realtors, with insights from the National Association of the Remodeling Industry.
The 2017 Remodeling Impact Report, the second of its kind from NAR, surveyed Realtors, consumers who have completed remodeling projects, and members of the National Association of the Remodeling Industry.
The report reveals the top remodeling projects, as well as the increased value – both financially and emotionally – that specific projects bring to homeowners once completed. After completing a remodeling project, 75 percent of owners have a greater desire to be in their home, 65 percent say they have increased enjoyment in their home, and 77 percent feel a major sense of accomplishment when thinking of their completed project. Fifty-six percent felt happy when they see their completed projects, and 39 percent say they feel satisfied.
“Realtors understand which remodeling projects and home upgrades will bring the most value to homeowners, whether they are remodeling with the hope of impressing potential buyers, bringing in higher offers or gaining more equity in the home,” said NAR President William E. Brown, a Realtor from Alamo, California and founder of Investment Properties. “Realtors also understand that many of these projects are undertaken solely to get more enjoyment from spending time at home. No matter the objectives, Realtors have unique and invaluable insights into how renovations and remodeling will bring the most benefit to homeowners.”
Interior projects. For owners looking to sell their home, Realtors named complete kitchen renovations, kitchen upgrades, bathroom renovations and new wood flooring as the interior projects that most appeal to potential buyers. When asked which interior projects yield the largest financial return upon resale, Realtors named hardwood floor refinishing (recovers 100 percent of project costs upon resale), new wood flooring (91 percent of costs recovered) and insulation upgrades (76 percent of costs recovered). Bathroom renovations and adding a new bathroom yielded the smallest financial return upon resale, recouping approximately 50 percent of project costs.
Exterior projects. When it comes to exterior projects, Realtors® said new roofing will recover 109 percent of costs upon resale, more than any other project in the report. New roofing was also named the exterior project that most appeals to buyers, followed by new vinyl windows, a new garage door and new vinyl siding.
Brown also reminds consumers that exterior projects are just as, if not more, important than interior projects when it comes time to sell. “A home’s exterior is its first impression to potential buyers, so any project that improves curb appeal will yield plenty of bang for the buck,” he said.
Satisfaction from projects. When it comes to the enjoyment homeowners get from projects, several projects received a perfect Joy Score of 10; Joy Scores range from 1 and 10, and higher figures indicate greater joy from the project. Projects with a perfect Joy Score of 10 included both interior and exterior projects of all price ranges, such as a new master/owner’s suite, with an estimated cost of $125,000 for a full makeover, and new steel front doors, with an estimated cost of $2,000.
While Americans spent $340 billion on home remodeling in 20151, many homeowners find the idea of attempting a remodeling project too overwhelming to take on. Thirty-five percent of homeowners in the U.S. said they would rather move than remodel their current home. Owners in urban areas are the least likely to take on a project, with only 52 percent saying they would be willing to remodel their home, compared to 55 percent in suburban areas and 70 percent for owners in rural areas.
“Even though a remodeling project may seem overwhelming at the onset, working with a professional, qualified remodeler who has the required experience and training can make a big difference,” said Tom Miller, president of the National Association of the Remodeling Industry. “This year’s report confirms how remodeling can increase home value and day-to-day enjoyment. I can’t emphasize enough how important it is to work with a contractor you can trust who adheres to a strict code of ethics and can help define a realistic budget. Get the project done right with a NARI member contractor.”
The National Association of Realtors, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.2 million members involved in all aspects of the residential and commercial real estate industries.
The National Association of the Remodeling Industry is the medium for business development, a platform for advocacy and the principal source for industry intelligence. NARI connects homeowners with its professional members and provides tips and tricks so that the consumer has the positive experience of remodeling done right.