Are you excited about a kitchen or bathroom remodeling project but are unsure if they will add value to your home? In an uncertain real estate market, many homeowners are hesitant spending money improving their home. Even if the improvement is to improve function or increase our own enjoyment, we all want to ensure we are not wasting money. Let’s discover how kitchen & bathroom remodeling adds value.
During the housing boom of the early 2000s, a homeowner was almost guaranteed to get their money back. Today, the housing market is no longer a feeding frenzy. Some homeowners are not even willing to paint their house before placing it on the market. They wonder if it is worth the time and money if it doesn’t really help.
The simple fact is, home improvements do help sell your home. Real estate agents agree that anything you do to improve your home’s appearance, function, and livability attracts more buyers and increases offers. However, not all home improvements add real value at resale. Popular opinion has always stated kitchen and bathroom remodeling increase a resale price. Now there is proof.
The Remodeling Impact Report, created by the National Association of Realtors (NAR), list the following as the top 5 interior projects that add value:
- Complete Kitchen Renovation,
- Kitchen Upgrade,
- Bathroom Renovation,
- Add New Bathroom, and
- New Master Suite.
Why are kitchens and bathrooms at the top of the list for adding value? The NAR report also shows us these are the projects with the most appeal to homebuyers. It is all about buyer psychology. What sells a house is a buyer seeing them living in it. If they fall in love with the kitchen and bathrooms, the house is sold.
There is, even more, good news. Trends are showing that the value of home improvement projects is increasing. Remodeling magazine’s 2016 Cost vs Value report states there is an average of 64.4% return on all large home improvement projects. This is up from 62% from their 2015 report, the second-highest return in the past eight years.
If you would like to talk more about kitchen and bathroom remodeling adding value, or need more information, please contact us.