Stuck at home due to the pandemic?... Check... Watched everything on Netflix?... Check... Read all the books on the shelf?... Check ... Now what?
Many quarantined homeowners are desperate to break the monotony and find activities to occupy their time during the quarantine. Some have decided it's time to check off the home renovation to-do list. Good idea, though there are a few things to consider when performing D.I.Y. Repairs and Renovations. Here's some steps to take and things to consider.
Which Home Renovation Project to Perform
So you want to spend your quarantine renovating your home. The first step when deciding which projects to tackle is to figure out the end goal. Are you looking for a project to increase the value of your home or are you just looking to change things up a bit for improved personal enjoyment? As shown by the National Association of Realtor's (NAR) annual Remodeling Impact Report, many renovation projects successfully accomplish both tasks, yet not always... And that's ok!
“The NAR report shows us that people often remodel for resale purposes, but it also reminds us that homeowners remodel, too, with the desire to make a home their own” - Lawrence Yun, NAR chief economist
When I go in to a listing appointment the seller inevitably tells me how much they spent on so-and-so project and expect a 100% return on that investment. In these situations, I have to remind my clients the reason they completed the project to begin with. Often, they were making improvements for their own enjoyment. It's impossible to put a monetary value on personal satisfaction and the improvements you make usually fit your own personal taste, as apposed to that of the typical buyer. When deciding on a purchase/sales price, decisions should be based on comparable properties in your area. These are two separate considerations.
The report finds that homeowners remodel, redesign, and restructure their home for a variety of reasons and takes a deep dive into the success of taking on projects as well as the increased happiness found in the home once a project is completed. They explore 20 of the top remodeling and replacement projects (Interior and Exterior) to find:
• The typical cost to complete the project - according to The National Association of the Remodeling Industry (NARI) Cost Survey
• The projected appeal to potential buyers - according to The National Association of REALTORS® (NAR) Value Survey
• Estimated recovery cost when sold (cost figure & percent of value recovered from the project) - according to The National Association of REALTORS® (NAR) Value Survey
• Homeowner's Reasons for doing the project, Most important result, and Overall "Joy Score" for each project (On Scale from 1-10) - according to The Survey of Consumers Who’ve Completed Remodeling Projects
We'll explore the top five projects here. I came up with my top 5 list by combining a few similar projects from the NAR Impact Report (ie. Small Kitchen Upgrade and Full Kitchen Renovation), and taking the top 3 from each category (Joy Score and Percent of Value Recovered)
Closet Renovation
Everyone could use an increased sense of calm during these troubled times. Some use meditation to slow the mind and decrease their stress, others decide nothing will help without better organization. Homeowners encounter their disorganized closet daily and usually first thing in the morning. Science tells us that disorganization causes stress and we all know that stress is highly detrimental to our overall health and happiness. That's why closet renovations rank among the highest remodeling projects, receiving top marks for "Joy Score" with a ten out of ten.
54% of consumers decide to complete a closet redesign to improve organization and storage while 15% decided it was just time for a change. 56% said the most important result was better functionality and livability.
Upon completing the project, 68% of consumers feel an immediate sense of accomplishment when they think of the project. 59% have an increased sense of enjoyment when they are at home and nearly three-quarters (72%) say they have a greater desire to be home since completing the project. So, if you are looking to complete a project to improve your enjoyment of your home and relieve some stress as well, a closet renovation may be an excellent use of your quarantine time.
On the flip side, closet renovation has one of the lowest Recovery of Value Scores of any project covered in the NAR Report. According to the NARI you can expect to spend around $6,300 to redesign your closet. A survey of REALTORS® reveals an estimated $2,500 in returns when you go to sell your home. That's a pitiful 40% of value recovered. So, if you are hoping to sell your home for increased profits once the stay-at-home orders are lifted... maybe choose a different project from our list.
Kitchen Upgrade/Renovation
“Kitchens serve as the 'heart of the home' for many, and whether you like to entertain or cook, updating a kitchen ensures greater access and use as homeowners age, especially when the upgrades take accessibility into account... No matter the size of the kitchen, a certified professional can guide the design and build process in a way that will yield joy and happiness for the homeowner.” - Robert Kirsic, NARI 2019-2020 President of the Board, Certified Kitchen and Bath Remodeler (CKBR)
The NAR Report Divides Kitchen Projects into Kitchen Upgrade and Complete Kitchen Renovation. Both received very high "Joy Scores" with a Complete Kitchen Renovation receiving top marks of 10, with 93% of consumers saying they have a greater desire to be home since completing the project. 95% have an increased sense of enjoyment when they are at home and 87% feel a major sense of accomplishment when they think of the project. A Kitchen Upgrade had results of 85%, 74% and 78% in the same categories of enjoyment.
The most important result of any kitchen project is improved functionality and livability. The reasons for taking on kitchen projects according to consumers: 32% said they performed a Kitchen Upgrade to upgrade worn out surfaces, finishes, and materials, while 20% decided it was time for a change. 24% had a Complete Kitchen Remodel to upgrade worn out surfaces, finishes and materials and 20% just moved into the home and wanted to customize to personal taste.
“The kitchen is a space homeowners frequent regularly throughout the course of the day... So when that area is remodeled to owners’ exact preferences – as they enter and exit the room – they continually experience the satisfaction of a job well done.” - Lawrence Yun, NAR chief economist
These results clearly show that a kitchen remodel will increase your personal enjoyment. The cost recovery for a kitchen remodel project is a little less clear. The NAR Report shows you can expect to spend $38,300 on a Kitchen Upgrade and recover $20,000 when you sell for a 52% cost recovery. A Complete Kitchen Renovation will cost around $68,000 with a $40,000 estimated cost recovery (59% value recovered).
While this doesn't seem like a great investment at first glance a deeper look into the data reveals a different story. More expensive projects make it more difficult to achieve high rates of value recovered, therefore results are always going to look a little less positive when only looking at percent of recovered cost. While you may not get as much money back from your investment directly, often times your home will be the only listing with an outdated kitchen. This may cause your home to sit on the market much longer than listings with recent updates and the longer a home sits on the market the more you will need to reduce the price. Because, according to REALTORS®, a Complete Kitchen Remodel ranks highest among projects' appeal to buyers and projects' likely value to the home for resale.
Full Interior Paint Job
A Full Interior Paint Job is possibly the best way to kill two birds with one stone while you're sitting at home with nothing much to do. Ranking third on the list in "Joy Score," with a 9.8. A full interior paint job makes every room in your home a little... or A LOT... more enjoyable by making your space feel more like you.
The main reason consumers decide to re-paint is because it's time for a change (49%)... we could all use some change right now, I suspect. Another 23% completed the project to upgrade worn-out surfaces, finishes, and materials and the most important result was increased beauty and aesthetics. Upon completion, 88% have a greater desire to be home, 68% have an increased sense of enjoyment when they are home, and 86% feel a major sense of accomplishment when they think of the project. With results like these, you can count on increased enjoyment when you finish this project.
The report did not give any cost recovery results for a full interior paint job because of the wide variability in project costs and results. A home with very outdated colors and dirty, cracked walls needs a makeover more than a house with walls that are clean and in good shape, with popular colors. You will also get much greater increase from a better paint job... obviously. No one wants to pay top dollar for a home with a poor quality paint job.
The up-front cost to complete the project can also vary greatly. Whether it's nail holes from hanging all your favorite art work or larger holes from that time the kids decided to play baseball inside the bonus room, the cost to complete a paint project increases with the amount of prep work required. The more holes and irregularities the more the job will likely cost you. Also, many consumers feel comfortable enough to put on their overalls and get dirty for a DIY paint project as opposed to some of the other remodel projects on the list. If you do decide to pay a professional, you can expect to spend $1.50-$3.00 per square foot with material ranging based on brand, quality and sheen (typically, shinier = more expensive). Again, any repairs and extra prep-work will be an additional charge. Either way, new paint will typically be one of the cheaper projects on this list, so you can expect a high percent of value recovered from the project.
New Roofing
"The sky's the limit if you have a roof over your head." - Sol Hurok, 20th Century Impresario
One of the most common phrases to describe shelter and our place to call home, "a roof overhead" is really all we need in life. That's why taking care of your's is one of the most important home maintenance items to consider and why new roofing is one of only two project you can complete from this list with a Percent of Value Recovered above 100%. While you won't get a Joy Score (9.5) as high as some of the others on this list, 75% of consumers say they feel a major sense of accomplishment when they think of the project, 65% have a greater desire to be home since completing the project, and 49% have an increased sense of enjoyment when they are home. The most important result of completing the project was durable and long-lasting results, according to 50% of consumers. 61% installed new roofing to upgrade worn-out surfaces, materials, and finishes. 15% decided it was time for a change.
The best results from a new roof come in the percent of value recovered category, with a 107% return, topping NAR's list. So, if your roof is looking a bit rough, REALTORS® rank a new roof the number one exterior project for appeal to buyers.
New/Refinished Wood Flooring
Lets face it, consumers these days want durable, high quality flooring that adds warmth to the room. Nothing accomplishes all these goals like hardwood. Adding new wood flooring to your home should cost you around $4700, according to NARI Remodelers' cost estimate and REALTORS® estimate $5000 in recovered cost. This equates to 106% value recovered from the project, the second highest on our list and, along with New Roofing, the only other project to surpass 100 percent. Already have hardwoods, but maybe they're looking a little rough? Refinishing Hardwood Flooring also ranks high, with 100% of value recovered from the project, costing an estimated $2600.
After adding new wood flooring, 78% of consumers have a greater desire to be home, 67% have an increased sense of enjoyment when they are home and 78% feel a major sense of accomplishment when they think of the project. With refinished hardwoods getting marks of 68%, 65% and 78% respectively. 52% decided to install new wood flooring and 39% refinished their existing hardwoods to upgrade worn-out surfaces, finishes and materials. And the most important result from each was better functionality and livability.
All of these projects will add enjoyment to your home while you live there and increase buyer appeal and value when it's time to sell. For more project ideas and the data to support them, check out the 2019 NAR Remodeling Impact Report and get to work!
Hire a Professional or Do It Yourself
After you decide which project to take on while you're quarantined, the next step is to decide if you'll need to hire a pro or if you can handle it as a DIY project. This can be a tough decision. You'll obviously save a lot of money by doing it yourself, but on the flip side what happens if something goes wrong? Does your skill-set match your ambition? Here's some data:
The largest gap in DIYers and those who hired help was generational, with 73% Millennials choosing to tackle the project themselves and 70% of Silent Generation and Boomers hiring a pro. This is likely due to monetary considerations. Another important factor is to figure out if you have the necessary skills to complete the project safely and successfully. Check your local ordinances, to see if you'll need to pull a permit. Some areas allow a homeowner to pull their own permit, others require a licensed contractor oversee the job. Here's some more information on which projects consumers tend to hire help to complete:
