NAR’s research team recently compiled a report on home remodeling based on surveys from NAR, HouseLogic.com, and NARI. This report evaluates the reasons a homeowner remodels, the outcome of taking on projects, and the increased happiness found in the home once a project is completed. From this data, we will highlight what remodeling projects can add the most value and livability to your client’s home.
Overall, most people that remodeled have a greater desire to be in their home and greater enjoyment being at home upon completion of the projects. This statistic was calculated using a Joy Score from HouseLogic.com. This score was created from a survey, combining the number of those who were happy and those who were satisfied with their final project and dividing that number by ten to make a ranking between one and ten. Higher scores show greater joy upon completion of the project. All joy scores were 8.2 and greater for interior projects and 7.9 and greater for exterior, showing most people were highly satisfied with the remodeling they decided to undertake (NAR Research Group, 2022).
In the NARI cost survey, most projects actually did not recover the cost of the remodeling; however, those projects that did recover costs include refinishing hardwood floors, new wood floors, insulation upgrades, new roofing, and new garage doors. Most people completed these projects mainly for better livability and functionality of their home, and any added value was just a bonus. The upgrades that sparked the most joy were new hardwood floors and the creation of home offices (NAR Research Group, 2022).
It can be noted that when cost recovery and Joy Score are combined, the projects to bring about the best value in homes that go to market are refinishing hardwood floors or installing new wood floors. These two projects both have the highest cost recovery as well as a perfect ten Joy Score. If your client completes these projects at some point before selling their home, it is likely that prospective buyers will notice the extra value and livability in the home, according to this data.
Continue following National Association of REALTORS® and Virginia REALTORS® for insights into future changes in home remodeling.
National Association of REALTORS® Research Group. (2022, April). 2022 Remodeling Impact Report. National Association of REALTORS® Research Reports. Retrieved April 2022, from https://www.nar.realtor/research-and-statistics/research-reports/remodeling-impact