Re­mod­el­ing re­port finds that kitchen, roof work has the most im­pact

The Day - - HOME SOURCE - By Day Mar­ket­ing

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.

IN­TE­RIOR IM­PROVE­MENTS

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

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