Remodeling Your Home in 2020?
By Duane Duggan, an award-winning Realtor and author of the book “Realtor for Life.”
Every year when spring arrives, homeowners think of remodeling, repairing, and improving their homes. Reasons might include enhancing the sheer enjoyment of the home, practical updates, or getting the home ready to sell.
When a homeowner is remodeling a home for enjoyment or practical reasons, that’s one thing. Getting it ready to sell is another. If you are replacing single-pane windows because you can’t stand the drafts anymore, and you are planning on keeping the home for more than five years, the payback on the sale may not matter to you. However, if you’re prepping the home to sell, why spend money on specific home improvement projects if they don’t offer an immediate return? Sometimes the answer is that the project increases the attractiveness of the property to sell more quickly but may not return 100% of the amount invested. When you work with a REALTOR®, you have the benefit of your REALTOR®’s access to research from the National Association of REALTORS® (NAR). NAR produces the “Remodeling Impact Report,” which contains a wealth of information available to help you with these decisions.
The annual report on the impact of remodeling and its return on the investment is produced each year based on a survey of both REALTORS® and homeowners across the country. The report covers both internal and external home improvement projects. The results of the 2019 national survey are shown below:
Typical interior projects and their estimated return upon sale:
1. Complete kitchen renovation 59%
2. Kitchen upgrade 52%
3. HVAC replacement 85%
4. New master suite 50%
5. Bathroom renovation 57%
6. Basement conversion to living area 64%
7. Add new bathroom 50%
8. New wood flooring 106%
9. Hardwood flooring refinishing 100%
10. Attic conversion to living area 56%
Typical exterior projects and their estimated return upon sale:
1. New roofing 107%
2. New vinyl windows 71%
3. New fiber-cement siding 76%
4. New wood windows 57%
5. New vinyl siding 63%
6. New garage door 95%
7. New steel front door 75%
8. New fiberglass front door 74%
Remember, this is information based on a national report and all real estate is local. Be sure to consult your REALTOR® to determine which renovations are best for your neighborhood and can offer the best ROI for your remodeling dollar.