These projects increase home equity, provide added enjoyment for owners

WASHINGTON — Homeowners who take on remodeling projects gain not only equity and more resale value in their home, but 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 (www.nar.realtor/reports/remodeling

-impact), the second of its kind from the 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. After completing a remodeling project, 75 percent of homeowners surveyed said they have a greater desire to be in their home, 65 percent said they have increased enjoyment in their home, and 77 percent said they feel a major sense of accomplishment when thinking of their completed project. Fifty-six percent said they feel happy when they see their completed projects, and 39 percent said 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,” he said. “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 reminded consumers that exterior projects are just as important as, if not more than, interior projects when it comes time to sell a home.

“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.

HOMEOWNER SATISFACTION When it comes to the enjoyment homeowners get from projects, several received a perfect “Joy Score” of 10 (this score ranges from 1 to 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 bedroom suite, with an estimated cost of $125,000 for a full makeover, and new steel front doors, with an estimated cost of $2,000.

WORK WITH A PRO While Americans spent $340 billion on home remodeling in 2015, many homeowners said they find the idea of attempting a remodeling project too overwhelming.

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,” Miller said.

“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,” he said. “Get the project done right with an NARI member contractor.”