Remodeling report finds that kitchen, roof work has the most impact
Upgrades to a home's kitchen were most likely to have a positive impact on the home's resale value and a homeowner's enjoyment of the property. Real estate agents considered roof work to be the most valuable exterior improvement, although homeowners were more likely to feel a sense of accomplishment and enjoyment if they put in new windows.
These were some of the findings of the 2017 Remodeling Impact Report. This is the second year the report has been issued by the National Association of Realtors and the National Association of the Remodeling Industry.
The report is based on 1,971 responses to a survey issued to NAR members and 382 responses from NARI members. It also includes 2,287 responses from homeowners who answered questions about their last remodeling project.
Overall, three-quarters of homeowners said they had a greater desire to be in their home after a remodeling project. Sixty-five percent said they enjoyed their home more, and 77 percent said they felt a major sense of accomplishment as a result of the work.
Thirty-two percent of homeowners completed the project on their own, while the same share hired a professional. Twenty-one percent purchased the materials but left the labor to a pro, while 14 percent contributed some labor.
Realtors ranked a completed kitchen upgrade as the most appealing project to buyers, followed by a kitchen upgrade and bathroom renovation. These projects were also seen as having the most positive impact on a home's resale value.
A complete kitchen renovation had the most positive impact on homeowners' morale. Ninety-one percent said they enjoyed their home more after this work, while 89 percent had more desire to be in the home and a sense of accomplishment.
NARI estimated that the average complete kitchen renovation costs $65,000, while the average Realtor estimated that $40,000 of this cost was recovered through an improvement in value. This was a return on investment of 62 percent.
Eighteen percent of Realtors said they had suggested that sellers do a complete kitchen renovation before selling their home. Fourteen percent said this project had helped close a sale.
Realtors were more likely to suggest a less expensive kitchen upgrade. More than half—54 percent—said they have recommended that a seller complete this work, and 23 percent said it had helped close a sale. This project was estimated to cost $35,000 on average, with a return on investment of 57 percent.
Eighty-one percent of homeowners said a kitchen upgrade gave them a sense of accomplishment