Numerous Benefits of Home Renovation Projects
Homeowners who complete renovation projects gain equity, increased resale value and are likely to enjoy their home more, according to a recently released report from the National Association of REALTORS®, with input from the National Association of Remodeling Industry. The 2017 Remodeling Impact Report presented questions to REALTORS® and consumers who have completed remodeling projects, as well as members of the National Association of the Remodeling Industry. The report distinctly points out which remodeling projects offer the highest return on investment and that there are financial and emotional benefits to a completed remodel project.
After completing a remodel project, 75 percent of homeowners say they have more of a desire to spend time in their home, while 65 percent say they have increased overall satisfaction in their home and 77 percent say they feel a great sense of accomplishment with regard to their completed project.
“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. “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.”
For homeowners who are planning to sell their home, REALTORS® said kitchen remodeling projects, as well as bathroom renovations and new wood flooring are the interior projects that potential buyers find the most appealing. When asked about which interior home projects offer the highest return on investment when reselling the home, REALTORS® said hardwood floor refinishing typically recovers 100 percent of the project costs when reselling, while new wood flooring will typically recover approximately 91 percent of costs and insulation upgrades will typically recover approximately 76 percent of costs.
With regard to exterior home projects, REALTORS® said that new roofing will typically allow sellers to recover approximately 109 percent of the costs when reselling, which was more than any other project covered within the report. A new roof was also selected as the exterior project that potential buyers find the most appealing.
When evaluating the satisfaction homeowners feel from the completion of a home remodel project, with 10 indicating the highest level of satisfaction, projects that offer the highest level of satisfaction include new master suite and new steel front doors. Kitchen renovations and upgrades, which may include adding new energy efficient appliances, sink, faucet and vinyl flooring or repainting walls and ceilings and upgrading cabinets with veneer and hardware, are also among the top remodeling projects to make homeowners happier with their home and more likely to spend time at home.
As indicated in the report, and ranked from highest to lowest, below are the remodeling projects that would appeal to homebuyers (listed with project estimate costs and possible return on investment):
- Kitchen renovation
- Kitchen upgrade
- Bathroom renovation
- New wood flooring
- New bathroom
According to the Joint Center of Housing Studies, Harvard University 2017 Remodeling Report, Americans spent $340 billion on home remodeling projects in 2015. Despite this data, many homeowners will stray from starting a remodel project out of a feeling that it will be too taxing. Thirty-five percent of homeowners in the United States said they would rather move to a new home than remodel the one they are currently living in.