In this low-inventory market, some homebuyers are making changes to their existing home instead of going through the competitive search for their next home. In addition to enjoying your current digs more, remodeling also brings the long-term benefit of increasing your home’s value.
The National Association of Realtors just released their 2019 Remodeling Impact Report, which highlights those projects that most appeal to homebuyers. This report was conducted pre-COVID in July 2019.
Obviously, many people began to work remotely in response to COVID, but that should only increase the importance of these remodeling projects.
According to the report, Americans spend $400 billion annually on remodeling their homes. Nationally, 35 percent of homeowners would rather move to another home than remodel their current one. 55 percent of owners in suburban areas and 52 percent of owners in urban areas say they would be willing to remodel their home. This jumps to 70 percent for owners in rural areas.
It’s worth noting that in the current housing market, many Realtors, myself included, are seeing multiple offers on listed homes. This scenario is not unique to Chattanooga, and it’s no guarantee that buyers will land their first, second or even their third choice. With this in mind, an increasing number of consumers are spending money to make their existing property into the home that will have all the features they’re looking for in a new house.
Sure, projects can be measured in cost, but realtors know that there are certain feelings that money can’t quite measure. To help gauge those intangibles, NAR calculated a Joy Score for each remodeling project based on the happiness homeowners reported with their renovations. So what do the numbers say?
Interior projects with a Joy Score of 10 were complete kitchen remodel, closet renovation, full interior and individual room paint, kitchen upgrade, and basement conversion to a living area. Exterior projects with the highest Joy Scores were new fiberglass or steel front door, new vinyl and wood windows, and new roofing.
Taking on these projects is often worth the investment and time. After remodeling, 74 percent of owners have a greater desire to be in their home. 65 percent have increased enjoyment in their home. 58 percent feel happy and 38 percent feel satisfied when they see their completed project with a typical Joy Score of 9.6. Seventy-seven percent of respondents feel a major sense of accomplishment when they think of their completed project.
Are you wondering whether to tackle the work yourself or contract it out? Some remodel projects often can be done on your own with a little bit of elbow grease. 36 percent of the owners did the project themselves, while 35 percent hired a professional for all of the job, and 14 percent hired the labor but purchased the materials. Weigh your options and resources to get the most bank for your buck.
In light of COVID-19, we are seeing a slowness in obtaining supplies and some appliances. And in some cases, the cost for some materials are increasing, as the pandemic slowed production in the supply chain.
Renovations, big and small, can help increase value. It also makes the property your own. Consulting a realtor might be a good place to get direction. We’re here for our clients and our community. That’s Who We R.