An NAR report says, ‘Yes!’
Renovating can bring you joy, according to an April 2022 National Association of Realtors (NAR) Remodeling Impact Report (the most current available).
The report included a survey titled, “Joy Score For Interior Remodeling Projects.” Results produced eight popular projects that received a perfect score of 10/10.
“NAR calculated a Joy Score for each project based on the happiness homeowners reported with their renovations,” the report said. The following projects brought the most happiness to renovators:
- paint entire interior of home
- paint one room of home
- add a new home office
- hardwood flooring refinish
- new wood flooring
- closet renovation
- insulation upgrade
- attic conversion to living area (the most expensive of all)
Should you remodel to sell your home?
While a refreshing remodel can bring you hapiness, it’s not likely to bring you more money when it comes time to sell you home. There is obviously value in improving the appearance of your home for potential buyers. A well-done project could make your home more saleable overall, but ROI is questionable. I recommend you reach out to a professional real estate agent before you make major changes that cost a lot and net very little extra cash (if any at all).
There is value in comfort and the enjoyment of your home, but if you are looking to cash in on a remodel, you might want to think again. If you have questions about the condition of your home, give me a call at 801-673-3333. I would be happy to take a look and offer advice based on my 30 years of experience. I have been known to pay for minor upgrades to make my clients’ homes more presentable. It’s important to me too.
Why do people remodel their homes?
Why do people remodel their homes? It seems pretty simple on the surface. Information contributed to the report by the National Association of Remodeling Industry (NARI) drilled down on the most important reasons homeowners set out on costly but rewarding journey of remodeling.
NARI found consumers remodel for the following reasons:
- to upgrade worn-out surfaces, finishes, and materials (30 percent)
- to add features and improve livability (20 percent)
- because it is time for a change (16 percent)
While there are a host of reasons to remodel, 35 percent surveyed for this study cited the desire for better functionality and livability as their top reason. Other homeowners (22 percent) were looking for durable changes and long-lasting results. They chose quality materials and appliances to help accomplish this. Just 14 percent reported beauty and aesthetics as their main desired outcome.
Which improvements will give me a good ROI?
There are so many factors that influence the realities of home sales and purchases that there really is no one answer to the question, “What improvements can I make to assure a good return on my investment?” The study relied on Realtors to provide estimates of the likely dollar value each project studied could be recouped at resale.
The Realtors’ estimates of value were compared to Recovered Project Cost percentages provided by NARI. Which project proved to provide the best recovery amount? Drum roll, please, refinishing hardwood floors. Homeowners can likely recover 147 percent of their investments at resale. New wood flooring came in second with a projected 118 percent potential ROI. Homeowners can potentially recover 100 percent of the cost of upgrading insulation at resale.
Following are other interior remodeling projects considered and the estimated ROI for each:
- 86% Basement Conversion to Living Area
- 83% Closet Renovation
- 75% Attic Conversion to Living Area
- 75% Complete Kitchen Renovation
- 71% Bathroom Renovation
- 67% Kitchen Upgrade
- 63% Add New Bathroom
- 56% Add New Primary Bedroom Suite
There are many ways to save on remodeling projects including doing it yourself; however, it is important to study the numbers carefully if the project is based on your desire to increase the value of your home.
I am here and ready to take your questions about remodeling. Give me a call at 801-673-3333. We can schedule an appointment and I’ll be happy to come take a look at your potential project.