Home renovations are in demand. Some homeowners are hesitant to put their homes on the market. They either don’t want to give up a lower mortgage interest rate, don’t want to leave their current neighborhood or have not been able to locate the ideal property to make a move. Other homeowners are looking to renovate before selling to increase the sale price and property desirability. Renovations are a great way to update, increase space functionality, reconfigure, or even complete unfinished space in the home.
At Coldwell Banker Realty, we offer a program called RealVitalize to assist with deferring the cost and finding the right professionals to handle renovations. Once a property is enrolled, project consultants from Angi will coordinate renovations. Sellers do not have to come out of pocket with funds before closing as our RealVitalize program takes those costs out of the proceeds of the sale of your home (without charging interest, markups, or additional fees). Turnkey properties typically sell much faster than those requiring updates.
Homeowners are also choosing to tap into their home equity. With more equity than ever before – thanks to annual appreciation values each of the last couple years as high as 20-39% in some regions of the country – this can be a viable option for those wishing to stay in their homes. One factor in home appreciation is demand and few U.S. cities are experiencing bigger demand than the Sarasota real estate market. Florida has also ranked No. 1 for relocation in the U.S. for several years.
Kitchen and bath remodels are traditionally the two most popular renovation options. Home offices, which are now more important than ever, are also being earmarked for renovation dollars.
According to new findings in the 2022 Remodeling Impact Report, a joint study from the National Association of Realtors and the National Association of the Remodeling Industry, 35% of owners said the most important result from their remodel was better functionality and livability. One surprising finding was 86% of respondents said remodeling one area of their home inspired them to remodel other areas of the house.
In 2020 alone, Americans spent an estimated $420 billion on remodeling projects. With cost of materials and labor only increasing since then, that annual number is only going higher. But which updates offer the best returns in terms of increased home value?
The Remodeling Impact Report revealed that refinishing hardwood floors was the home improvement project with the highest ROI (147%), followed by new wood flooring (118%) and insulation upgrades (100%). For exterior renovations, new roofing and new garage doors also both recovered 100% of project costs. Throughout Florida, roofing has become a hot button issue for either getting homeowner’s insurance or having a new roof to lower insurance premiums.
Updates to systems are also important, given the aging housing stock nationwide. Many parts of Florida have a high percentage of homes 30 years or older. So, while systems renovations are not done for eye appeal, they are often a necessity. Common upgrades here include electrical, plumbing, HVAC and security.
Contact an experienced real estate agent for an updated property value assessment. At that time, the agent can advise whether doing specific renovations will increase your home’s value.
Duff Rubin is president of Coldwell Banker Realty in Florida.
This article originally appeared on Sarasota Herald-Tribune: DUFF RUBIN: Remodeling? These upgrades offer the best return for value
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