Home improvement professionals have long understood, and used as a selling point, the positive impact remodeling projects have on a home's resale value, but the 2015 Remodeling Impact Report from the National Association of Realtors (NAR), suggests renovation projects also provide a more intrinsic value for homeowners who choose to stay in their homes: Joy.
The report noted that approximately 64 percent of those surveyed have experienced increased enjoyment in their home after completing a remodeling project. Additionally, 75 percent of respondents said they felt a major sense of accomplishment when thinking of their completed project. Fifty-four percent of respondents felt happy about the changes to their home, and 40 percent felt satisfied.
The Home Depot sales grew 6.4% third quarter, while its big box competitor Lowe's quarterly sales increased 5%. Both companies will expand next year as they expect the housing boom to continue.
An old adage says "money can't buy happiness" but it can buy a complete kitchen renovation, and according to the study, the completion of that type of project gave 86 percent of respondents an increased sense of enjoyment when they were at home.
"Remodeling projects can greatly improve both the value of and satisfaction with one's home, which are great things no matter the reason for a project," said Judy Mozen, president of the National Association of the Remodeling Industry (NARI).
But if selling happiness seems too intangible the study also looked at the typical cost of 20 remodeling and replacement projects, as estimated by members of the NARI, and the return on investment for each project, including kitchens, baths, closets and flooring.
According to the survey, homeowners who invested in refinishing their wood flooring were able to recoup approximately 100 percent of their costs upon resale of the home and homeowners who purchased new wood flooring recovered up to 91 percent of their investment. Kitchen upgrades and complete renovations were recovered at 67 percent, closet remodeling costs were returned at 57 percent, and bathroom renovations and the addition of a new bathroom were returned at 58 percent and 52 percent respectively.
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