There was a surge in home improvements during the pandemic. Families spending more time at home, oftentimes having to reconfigure guest bedrooms into home offices, and having to stay entertained went all out. According to the Joint Center for Housing Centers of Harvard University, home improvement project spending went from $328 billion in 2019 to $472 billion in 2022. The National Association of Realtors published the Remodeling Impact Report to find out which renovation projects produced the best return on investment.
WHAT IS HOME REMODELING
Firstly, there is a difference between remodeling and renovation. While renovations are a means of bringing some aspect of a home back to its original condition, while remodeling often involves changing the essence or design of a home element. Remodeling is oftentimes more expensive, requires permits, and needs licensed contractors. Examples of remodeling projects include adding an addition to your home or turning the attic area into an office space. Examples of renovations include bringing an original fireplace back to life, restoring an old porch, and rejuvenating existing hardwood floors.
HOME INTERIOR PROJECTS WITH BEST RETURN ON INVESTMENT
According to the National Association of Realtors, the top three home projects for recovering your costs are: (1) hardwood flooring refinish with a 147 percent return on investment (ROI); (2) new Wood flooring with a 118 percent return; and (3) insulation upgrade with a 100% return.
This means, if you spent $10,000 on refinishing the floors in your home, upon sale, it is estimated you will get back $14,700 when you sell the home, leaving a $4,700 return. After these top three improvements, you should not expect to recoup the costs you put into these projects. This information is very useful for anyone thinking of selling in the near future.
OUTDOOR PROJECTS WITH THE BEST RETURN ON INVESTMENT
The top three outdoor projects that offer the highest return on your investment are: (1) standard lawn care service with a 217% return; (2) landscape maintenance with a 104% return on investment; and a tie for third place (3) landscape upgrade and an outdoor kitchen with a 100% return on investment.
EXTERIOR REPLACEMENT PRODUCTS
Other outdoor features to consider comes from the Zonda Media/ Remodeling from JLC report. It names the exterior replacement products with the most return on investment. The top three for our region are: (1) Manufactured Stone Veneer with a 109% return on investment; (2) garage door replacement with a 99% return on investment; and (3)siding replacement with a 99% return on investment.
WHY IS THIS GOOD TO KNOW
If you are thinking of selling your home, this is great information to use when deciding which home improvement projects to start with, especially if you have determined your budget. Even if you are not thinking of moving now, knowing whether or not you will likely get your investment funds back is good to be aware of.
BOTTOM LINE
Your home is your sanctuary. Now, more than ever, homeowners recognize the value of making their homes the place, which they want to spend time. It is wise and prudent to understand how your investments in your home may help (or make little difference) in its value. Regardless, in Northern Virginia, keeping your home well maintained leads to an increase in its value over time. This area remains a great place to buy and own a home.
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