Home Remodeling that Pays Off

Mike Capelle, Broker/OwnerMike Capelle, Broker/Owner

While homeowners may dream of putting in a hot tub, building in an awesome entertainment center, or redesigning closets, a new report by the National Association of Realtors® (NAR) finds that homeowners’ money would be better spent on other home remodeling projects if they are considering selling their home sooner than later.

For NAR’s 2015 Remodeling Impact Report, Realtors ranked home remodeling projects in terms of their appeal to buyers, as well as expected value at resale (without regard to project price). Results revealed that the interior project predicted to most appeal to buyers and enhance the value of a home is a kitchen upgrade or renovation. The next most popular and valuable project is bathroom renovation. The other interior project appealing to buyers and having a high sales value is flooring, either new or refinished.

The report also found that updates to a home’s systems and exterior can pay off. An HVAC replacement is highly recommended by Realtors for cinching a deal with a high payback. According to the report, home buyers love a new roof, which will reap 105% of cost at resale, followed by new energy-efficient windows (80% return on investment for a vinyl product).

But renovations aren’t just about resale; homeowners also improve their homes so they can enjoy these upgrades themselves. After remodeling, the NAR report found, 74 percent of owners had a greater desire to be in their home, and 64% have increased enjoyment of their home. 34 percent of owners reported the single most important result from remodeling was better functionality and livability; to a lesser degree, they reported that they remodeled for more durability and longer-lasting results, better aesthetics, and to add personality to the house.

You can find the full report on the NAR Website.

When it’s time to sell your home, Sunset Vista Realty is ready to advise and help. Check out our Seller Services.

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