Each year, Remodeling Magazine publishes its Cost vs. Value Report that benchmarks the cost of typical home remodeling projects and how they might impact the home’s resale value. It’s a handy reference if you are wondering how much more a project will cost you this year compared to if you had completed it last year. Hint: it seldom costs less. It also is useful to avoid over-improving if you plan to sell your home in the next couple of years.
This time, the National Association of the Remodeling Industry (NARI) also teamed with the National Association of Realtors (NAR) to produce the Remodeling Impact Study, which may be even more valuable. While Cost vs. Value measures financial payback, the Remodeling Impact Study assesses appeal and enjoyment. In other words, how much will the project enhance enjoyment of your home, and how will the improvements influence your home’s desirability in the real estate market?
Not surprisingly, the projects that are best at holding dollar value seldom are the ones we truly love. Exception: Replacing a worn or damaged roof is worth more than it costs and is highly recommended by Realtors. Apparently, we all appreciate the value of staying dry. And both home inspectors and insurance carriers are quick to flag faulty roofs.
The Remodeling Impact Study found that 3 out of 4 of those surveyed wanted to spend more time in their homes after remodeling and more than 9 in 10 were happy or satisfied with how their projects turned out.
Although our homes often are among our most valuable investments, they are much more. With the rise of Millennials, a recent report found that life is more about experiences than things. Homes form the backdrops of many life experiences. How does someone who enjoys cooking or entertaining put a value on an updated, open floor plan kitchen that’s integrated with an outdoor living environment? When a family loves its neighborhood but need more space, what’s the real worth of refinishing the basement or tastefully adding on? And don’t forget the Kodak moments (make that iPhone snapshots) that will be preserved in digital photos for generations.
Please contact JB at APEX Design Build (aka APEX Construction Management) to discuss your remodeling needs.
Top Value Remodeling Projects
The Remodeling Impact survey found that a new bathroom, complete kitchen remodeling and master suites are the top three “Joy Index” interior projects. Meanwhile, Realtors are most likely to recommend a kitchen facelift, bathroom remodel and hardwood floor refinishing to prepare an older home for resale.
Here are links to the complete reports: