Remodeling FAQs & Remodel ROI – Easily Find Info That Matters To You

Remodeling FAQs Of 2017 That Still Should Matter To You!

Remodeling FAQs & Remodel ROI –  Statistics can be confusing & miss leading. Here I share insider info & survey results based on over 2,031 responses.

So you can easily find, what really matters to you!

In the FAQ section our consumers can find the information that matters to them.

The National Association of the Remodeling Industry (NARI) e-mailed a remodeling project survey to a random sample of 74,357 members.

The results are based on 2,031 received responses.

The survey had an adjusted response rate of 2.7%.

Respondent’s were asked to take the following into consideration:

Based on a survey from the National Association of the Remodeling Industry, we have included the median cost of each professional remodeling project. Generally, assume a 2,450 sq. ft. home based on U.S. Census data.

This report totals include both

interior and exterior home improvement projects!

Download the PDF here

So let’s dive in …

Remodeling Q&A

Question:

How much money was spend on home remodeling during 2017 in the US?  

Answer:

  • Americans spent $340 billion on remodeling in 2017

 

Question:

Who is interested in remodeling their home?

Answers:

  • 35% of U.S. homeowners would rather move than remodel their current home.
  • 55% of owners in suburban areas would remodel their home.
  • 52% of owners in urban areas say they would be willing to remodel their home.
  • 70% of owners in rural areas are willing to remodel their home.

Question:  Why consumer remodel their homes?

Answers:

  • 35% of consumers remodel to upgrade worn-out surfaces, finishes, and materials
  • 16% of consumer want to add features and improve livability
  • 13% of consumer remodel because they feel it is time for a change

Question: How home-owner feel about their completed remodeling project?

Answers:

  • 75% of owners have a greater desire to be in their home.
  • 65% have increased enjoyment in their home.
  • 56% feel
  • 39% feel satisfied when they see their completed project.
  • 77% feel a major sense of accomplishment when they think of their completed project.
  • 36% of owners report the single most important result from remodeling is better functionality and
  • 17% report durable and long-lasting results, materials, and appliances.
  • 17% report beauty and

Question: Who completed the remodeling work?

Answers:

  • 32% of the owners did the project themselves.
  • 32% percent hired a professional for the job.
  • 21% hired the labor but purchased the materials.
  • 14% contributed some do-it-yourself (DIY) labor.

Check out my 5 step contractor hiring methode

What Are The American Top 3 Remodeling Projects In 2017?

#1 Complete Kitchen Renovation
Most completed residential remodeling project in 2017 was Full Kitchen Renovation
Most completed residential remodeling project in 2017 was Full Kitchen Renovation

Question: Why consumer doing this project?

Answers:

  • to upgrade worn-out surfaces, finishes, and materials – 31 %
  • .Second most common reason: to modernize – 23 %
  • Most important result: better functionality and livability – 44%

Question:  How home owners feel after project completion?

Answers:

  • 91%  said they have a greater desire to be home since completing the project, And they also said that their sense of enjoyment of their home got better.
  • 89 % feel a major sense of accomplishment when they think of the project.

Note:

  • 18% of REALTORS® have suggested sellers complete a complete kitchen remodel before attempting to sell,
  • and 14 %said the project most recently helped cinch a deal for them, resulting in a closed sale.

What is the Remodel ROI ?

Answers:
•NARI Remodelers’ cost estimate: $65,000.
•REALTORS®’ estimated cost recovered: $40,000.
•Percent of value recovered from the home improvement project: 62 %

#2 kitchen upgrades
2nd place on the most favorite list of 2017 goes to kitchen upgrades & updates
2nd place for most favorite home improvement projects in 2017 goes to kitchen upgrades & updates

What was the top reason for doing the project?

Answers:

  • to upgrade worn-out, surfaces, finishes, and materials – 42 percent.
  • Second most common reason: to modernize – 21 percent.
  • Most important result: better functionality and livability – 34 percent.

Question: What is the consumers’ View After Completing the Project?

Answers:

  • 62% of home owners said they have a greater desire to be home since completing the project,
  • 57 percent have an increased sense of enjoyment when they are at home,
  • and 78 percent feel a major sense of accomplishment when they think of the project.

 NOTE:

54% of REALTORS® have suggested to sellers a complete a bathroom renovation before attempting to sell,

23% said the kitchen upgrade most recently helped to seal a deal for them and resulted in a closed sale. ( that’s huge)

what was the Remodel ROI ?

Answers:
•NARI Remodelers’ cost estimate: $35,000.
•REALTORS®’ estimated cost recovered: $20,000.
•Percent of value recovered from the home improvement project: 57%

Back to the Proven Remodeling Process

#3 Complete Bathroom Remodel
second place in frequency of remodeling projects in 2017 was Full Bathroom Remodels
second place in frequency of remodeling projects in 2017 was Full Bathroom Remodels

What was the top reason for doing the project?

Answers:

  • to upgrade worn-out, surfaces, finishes, and materials – 38 percent.
  • Second most common reason: to modernize – 19 percent.
  • Most important result: better functionality and livability – 40 percent.

Consumers’ View After Completing the Project?

Answers:

  • 62% of home owners said they have a greater desire to be home since completing the project,
  • 57 percent have an increased sense of enjoyment when they are at home,
  • 78 percent feel a major sense of accomplishment when they think of the project.

 NOTE:

44% of REALTORS® have suggested to sellers a complete a bathroom renovation before attempting to sell,

Only 6% confirmed that the bathroom remodeling project most recently helped to seal a deal for them or resulted in a closed sale.

Remodel ROI :

Answers:
•NARI Remodelers’ cost estimate: $30,000.
•REALTORS®’ estimated cost recovered: $15,000.
•Percent of value recovered from the home improvement project: 50%

Note:

Interesting is, that the first 3 project types. Are also in the same order, increase the home value.

Back to the bathroom remodeling Step-by Step Guider

What Is average cost of bathroom remodel per square foot?

Answers:

According to my numbers there are 3 different bathroom upgrades.

  • Small Bathroom Update – will cost about $125 / SF
  • Medium Grade update – will cost about $200 / SF
  • High End Update – can cost $250/SF and more.

As result a small bath update (8′ x 10′) can be as low as $10,000

And if you choose the high end version the same room can cost you more than $20,000

Question: How much of the remodeling costs are for labor?

Answer:

Labor Charges ranged in 2017 from 30% to 60% depending on task.

And the Plumber and Electrician Costs are in the upper percentage range.

Question: So, What Home Improvement Are Really Worth The Cost?

To simplify things we can get a better overview of Cost vs, ROI in the following Infograph:

Answers:

Here are the remaining projects from the statistic including the possible return on investment.

Ordered by affect on your home value from big to small affect:

  • Bathroom Addition      – 50% remodel ROI
  • NEW MASTER SUITE         – 52% Remodel ROI
  • NEW WOOD FLOORING      – 91% Remodel ROI
  • HVAC UPDATE                     – 67% Remodel ROI
  • FLOOR REFINISH              – 100% Remodel ROI
  • BASEMENT CONVERSION – 63% Remodel ROI
  • ATTIC CONVERSION           – 53% Remodel ROI
  • CLOSET RENOVATION        – 53% Remodel ROI
  • INSULATION UPGRADES    – 76% Remodel ROI

Here are the Cost vs Value Numbers For 2019

Download the table Image

Before you commit to long term remodeling plans.

You need to focus on your intentions for your home.

For example do you want to stay in this home and is this your retirement home. Or do you intent to put it on the market and want to sell it fast?

If you want to stay in your current home, you should ask yourself:

  • How much time do you plan to live in your present residence?
  •  Will you reach delight in the outcomes of your remodeling job?
  •  Will the remodel fulfill a prompt however short-term requirement? Or be an investment in your way of life?
  •  How old are you? What sort of earnings do you prepare for in the years in advance?
  •  If you are close to retired life, is now the time to purchase home improvements?
  • Just how much chaos can you live with during the restoration procedure?
  •  Does your house the flooring plan, the garden, the bathrooms, and so on work for you?
  •  Will your home need a great deal of updates?
  • Will there be basic methods to upgrade points like energy savings?
  • Can you obtain your money back when you sell?

How do I know I made the right decision?

Curb-appeal the first impression matters
Curb-appeal the first impression matters

Well, you already know and it’s a fact that you unlikely won’t recoup your full investment.

Further you just learned about ways to reduce your initial costs.

To make sure that your numbers match. You should get a home appraisal.

This will give you your current home value as baseline.

Research & compare how neighbors  did after their renovation jobs.

As well as how those home values where appraised for the  marketed after the completion.

Estimate costs to improve your homes style and character. Because the wrong improvements can significantly lower your home value.

For example a ultra modern interior will make it hard to sell your Victorian home. As well as a sun room most likely will not help your bottom line in Texas

Further you should keep in mind.

That if you are planning to move in a year or two. You probably do not want to deal with the stress and inconveniences of an ongoing 6 month remodeling project.

If you wish to optimize your remodel for resale

the right remodeling choices can make you money

Your best invest in home improvements like:

  • exterior finishes,
  • more secure doors,
  • better windows,
  • and smart home features

The information from the above research concludes that those sorts of jobs can recover more than 60% of the investment.

Read this before you jump into a DIY Remodel Tips your life may depend on it!

Bonus rooms and upgraded master suits only recoup about 50%

And  your premium kitchen upgrade with custom cabinetry might not sell itself to more then 60 %.

Yet it will aid if your renovated kitchen can double it’s value compared to your grandma’s old set up.

An added bathroom is a must if your home currently just has one!

And this call is actually a good one regardless if you stay or sell.

You should also keep in mind that younger and smart buyers, will value any type of energy efficiency improvements.

Because they produce recurring monthly savings. And the beauty to you is that some of them are producing Tax Breaks as well.

Where as to a home office is further down of the needed scale since most people won’t have a need for it.

Swimming pools are everything about your satisfaction, not the asking price.

As a matter of fact in most cases they are considered a nuisance for insurance reasons.

And the pool upkeep is elaborate and expensive as well.

We back-filled plenty of those around here.

Where in other parts of the country like the West Coast a pool is just standard.

Wrapping it up in the conclusion

What brings me to the next point…

My take on those statistics –

If you ask me … I normally tell my clients that they need to look closer into those numbers. And another way of handling it is to reduce your asking price by the estimated remodeling costs.

Because:

A) that may swing a buyer to get hooked and

B) they can update as they want to

Plus it’s NOT your Headache.

Further I highly recommend to use Staging Professionals. Because they can make your home like a million bucks jackpot.

So be smart and get your home staged,

Once this is done have an open door …

most important is to collect feedback.

So ask your visitors to fill out a short to get feedback.

Then filter through the feedback improve your areas of critics and try again.

If you remodel to personalize your home. And you are planning for you to stay in it.

This would be a good time to return to our remodeling guides.

Use my 5 Step Contractor Hiring Method.

Read our Interior Designer FAQ’s

Now I like to turn it over to you …

Did you find the answers you where looking for?

Do you know other tips to save on remodeling projects?

Do you have any questions that are not answered?

If so,

Please feel free to leave a note in the comment section below.

And if you like this post comment & share this content.

Thank you for reading it.

JK 🙂