From Qualified Remodeler magazine
NARI and the National Association of Realtors (NAR) have teamed to present the 2015 Remodeling Impact Report.
The report collected data from NARI members about median remodel costs and from NAR Realtor members about median resale value from home improvements. Those numbers were analyzed to present the median cost recovered on 20 interior and exterior remodel projects. Homeowners who recently completed remodel projects were surveyed to provide the Joy Score, an indicator of how happy homeowners are, on average, with each of the remodeling project categories presented in this study.
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Homeowners remodel for myriad reasons. In the end, however, almost all are focused on one key goal: Enjoying their new space. When it comes time to sell their home, these upgrades often can yield higher sales prices, though the cost of the remodel may not be completely covered by the higher sales price.
More than 4,000 consumers took a survey from homeownership site HouseLogic.com about the last remodeling project they undertook, which provided the data for calculating the Joy Score. The Joy Score was determined by combining the share who were happy and those who were satisfied when seeing their completed project and dividing the share by 10 to create a ranking between 1 and 10. Higher scores indicate greater joy.
In September, 480 NARI members gave approximate remodel costs based on a post-1978, 2,450-sq.-ft. house in good condition with no surprises. Members were to consider prices using standard or typical quality materials; a few projects feature “better-quality” materials, but no top-of-the-line projects.
About 2,000 NAR members responded to an October survey examining the return on investment they have seen in home sales based on interior remodel projects and data NARI collected. Realtors indicated the projects with highest recovered costs were hardwood flooring refinish, insulation upgrade, new wood flooring and basement conversion to a living area. Interior work with the highest Joy Scores were new bathroom, complete kitchen renovation, new master suite/owner’s suite and hardwood flooring refinish.
Nearly 2,200 NAR members responded to a similar survey pertaining to exterior remodels. The highest percentage recovered in exterior jobs were new roofing, new garage door, new vinyl siding and new vinyl windows. Exterior projects with the highest Joy Scores were new fiber-cement siding, new fiberglass or steel front door, new roofing and new garage door.
Qualified Remodeler will publish a full analysis of the results in its January 2016 issue.