When you moved into your home, chances are you had big plans for future updates and renovations. But if you’re like most of us, life gets busy and those projects tend to fall by the wayside. Fortunately, the New Year is a great time for a fresh start. So, if 2020 is your year to take on some much needed updates, here are just a few projects that will not only help you enjoy your home more, but may also pay off when it comes time to sell.
The kitchen is still king
In its 2019 Remodeling Impact Report, the National Association of REALTORS® (NAR) asked REALTORS® to rank interior projects in terms of their appeal to buyers and expected impact on resale value. A complete kitchen renovation took the top spot on both lists, followed by a kitchen upgrade at number two.
“Everyone wants that dream kitchen, but before starting this project, it’s important to determine your end goal,” said REALTOR® Sean Gardner with the Thornton Realty Team of Coldwell Banker Hubbell BriarWood. “Are you renovating for your own enjoyment, or are you updating for resale? Your answer plays a big role in design and budget.”
If you’ll be living in your home for several years, you may put in higher-end upgrades or make more personal design selections. And, according to NAR, if you do, you’ll likely enjoy the results. The organization’s report found that 93 percent of consumers who completed a major kitchen renovation have a greater desire to be home since completing the project, and 95 percent have an increased sense of enjoyment when they’re home. Overall, the project received a “Joy Score” of 10 out of 10.
If you’re renovating for resale, your upgrades should stay in line with the neighborhood comparables. When it comes to value, the NAR report says a complete kitchen renovation costs approximately $68,000 — according to the National Association of the Remodeling Industry (NARI) — with an estimated return of $40,000 (59 percent). A smaller kitchen upgrade runs about $38,300, with an estimated return of $20,000 (52 percent).
A small room that packs a big punch
Bathrooms are right up there with kitchens in terms of buyer importance, and while this room is smaller, it contains a lot of pricey items. When upgrading bathrooms, try to focus on timeless, neutral finishes that will last for years to come and appeal to a majority of buyers.
NAR’s Remodeling Impact Report gave a bathroom renovation project a “Joy Score” of 9.3, finding that 80 percent of homeowners feel a major sense of accomplishment when they finish the project. The report says a bathroom renovation costs about $35,000, with a return of $20,000 (57 percent).
First impressions are everything
If your kitchen and baths are in good shape, Gardner suggests turning your attention outside.
“The exterior is important from a resale perspective because curb appeal is the first thing buyers see as they drive up,” he said. “And a lot of us spend time outdoors, whether it’s grilling on the deck, watching the kids play in the yard, or simply relaxing on the patio. So, in addition to adding value, updating your exterior can also bring a lot of personal enjoyment.”
In fact, NAR’s report found that many exterior projects ranked quite high on the “Joy Scale,” with a new front door, a new roof, and new windows ranking 9.7, 9.5, and 9.6, respectively. Exterior projects also produced a higher return on investment. A new steel front door (75 percent), a new garage door (95 percent), new vinyl windows (71 percent), new fiber-cement siding (76 percent), and new roofing (107 percent) are the upgrades that came out on top.
Pay attention to big-ticket items
While we all want our home to look nice, Gardner says the mechanical systems that keep everything running are just as important, especially to future buyers.
“I would focus on the larger items — plumbing, electrical, HVAC system — before getting too caught up in cosmetic work,” he said. “Not only will buyers pay attention to these things, but they’re also important when it comes to maintaining your home’s value and protecting your investment.”
In fact, an HVAC replacement and an insulation upgrade made it on NAR’s list of projects that most appeal to buyers. And, believe it or not, these areas also turned out a decent “Joy” ranking, at 8.6 and 9.3, respectively — mostly due to their impact on energy efficiency. The return on investment isn’t too shabby either, with new insulation bringing an 83 percent return, and an HVAC upgrade providing an 85 percent return.
Other projects that made the NAR report include new hardwood flooring, a closet renovation, converting an unfinished basement into livable space, and a new master suite.
But no matter what project you take on in 2020, it’s a good idea to run your plans by an experienced, local REALTOR®.
“We get calls all the time to provide opinions on renovations and upgrades, and we’re more than happy to do it,” said Gardner. “Of course we want you to make improvements that you’ll enjoy, but as REALTORS®, we’re also looking out for your best interests and we want you to ensure that you’re making solid financial decisions.”
Source: https://bit.ly/33dMqPM
