Home Renovations Deliver Improved Satisfaction and Value, Study Shows
A recent study has confirmed what many homeowners have experienced after completing remodeling projects: such projects boost a property’s value and enhance the homeowner’s satisfaction. Conducted by the National Association of Realtors® and the National Association of the Remodeling Industry, the 2015 Remodeling Impact Report quantifies the benefits of several popular home improvements. The results suggest that renovations are worthwhile investments regardless of whether the homeowners are planning to sell their homes in the near future.
Of over 4,000 respondents, 64 percent experienced greater satisfaction with their homes following a renovation. Specifically, respondents enjoyed improved functionality and livability, enhanced aesthetic appeal, and more up-to-date materials, styles, and appliances. The report calculated a “Joy Score” for each project to reflect the happiness that homeowners gained from different types of renovations. Realtors were also questioned regarding the renovations that, in their experiences, had appealed most to buyers, minimized time on the market, and contributed the most to a home’s resale value.
The study’s findings on different remodeling projects included:
- Kitchen upgrades. As the proverbial heart of the home, renovations to the kitchen are often considered among the most effective ways to boost a home’s marketability when it is for sale. The results of the 2015 Remodeling Impact Report support this idea. A quarter of the realtors surveyed believed that a renovated kitchen had helped them close a recent sale, and 57 percent had at some point suggested that sellers upgrade their kitchens. Upon resale, homeowners recover an average of 67 percent of the costs of a kitchen remodel. Kitchen improvements also yield benefits for homeowners who have no intention of moving any time soon: respondents cited improved function and livability as benefits stemming from their new kitchens, and approximately 75 percent reported greater overall enjoyment of their homes.
- Bathroom remodels. Renovated bathrooms are also likely to deliver satisfaction to homeowners and attract potential buyers. Sixty-two percent of respondents stated that they had a stronger desire to spend time at home after completing a bathroom remodel, while 45 percent of realtors had suggested that sellers undertake such projects. Homeowners recoup an estimated 58 percent of the costs expended on bathroom remodels.
- Exterior remodels. For projects performed on a home’s exterior, realtors estimated that new roofing, new vinyl windows, and new garage doors were the most appealing to buyers. Realtors also ranked these projects as having the highest value at resale and the greatest cost recoveries. New roofing, which homeowners often install to improve energy efficiency, is likely to yield the highest return on investment of all exterior renovations. On average, this upgrade carries a staggering 105 percent cost recovery, and the study assigned new roofs a Joy Score of 9.6 based on responses from homeowners. In addition, 32 percent of realtors believed that a home’s new roof had recently helped them close a sale.
- Other home improvements that yielded strong returns on investment were insulation upgrades and HVAC replacements, with homeowners recovering approximately 95 percent and 71 percent of the costs, respectively.
Whether you are interested in remodeling your home to boost its resale value or simply to increase your enjoyment of the property, AEH Builders can help you achieve the style of your dreams. From minor upgrades to major overhauls, our team of professionals specializes in kitchen and bath remodels, additions, exterior upgrades, and much more. Ready to begin reaping the proven benefits of renovating your home? Contact us today at 480-442-2341!