A new report shows that homeowners who remodel gain not only equity and more resale value in their home, they are also more likely to find satisfaction and enjoyment from their home.
The 2017 Remodeling Impact Report from the National Association of REALTORS®, with insights from the National Association of the Remodeling Industry, surveyed REALTORS®, consumers who have completed remodeling projects, and members of the National Association of the Remodeling Industry.
– 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
– 77 percent feel a major sense of accomplishment when thinking of their completed project
– 56 percent felt happy when they see their completed projects
– 39 percent say they feel satisfied
So what are the top joy-generating projects? According to the report, they look like this:
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.
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 2015, 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.
Source: National Association of REALTORS®