Billions and billions and billions of dollars. That’s what Americans spent on home remodeling projects in 2016. More like hundreds of billions. And 2017 has certainly been following the suit so far! Major home improvements and significant additions to a home are key factors in why that figure is so astronomical! But, if we’re all honest, remodeling is the type of project we all consider doing or want to do.
According to the National Association of Remodeling Industry (NARI), around 50% of homeowners surveyed in suburban and urban areas say they are willing to remodel their living space, and over two thirds of rural home owners convey that willingness. While a third of all home owners consider it easier to just move to a new home than tackle a remodeling project.
People remodel for many reasons, and 75% of us report feeling a major sense of accomplishment as a result of a completed project. Better functionality and livability, or what we will refer to as the ‘enjoyment factor’, is generally cited as the top reason for why remodel at all. Other factors like knowing better materials are in place, appreciating the beauty of an upgrade and making changes to fit the owner’s feeling of their living space are considerable factors. But it is the joy factor that we wish to emphasize.
Above that however is the overall cost value. Also known as ROI, or return on investment, this factor is our primary consideration. Money spent for home improvement is usually seen as an investment that is recouped at the time of sale. For our purposes, it works out best to understand that as if the home is being sold within a year of a remodeling project. Yet, certain improvements have lasting value, of more than 1 year. So longevity is certainly a consideration for all home remodeling considerations.
Our top list is intended to be easy to read, simple to understand and intending to provide advice should you be considering any of these projects going forward. Or perhaps you are wondering which one(s) may be better to tackle than others. As this isn’t the only list of its kind, we chose to go about things a bit differently than others. Here is the basic scale of what into which items made our list and the order in which they appear:
Cost value (or ROI) is the most weighted factor. A few items on the list will actually return more in terms of recouped value than what you, the owner, put into it. Pretty sweet, huh? Unlike some other lists, we’d rather not overwhelm you with a long list of percentage points and so instead we go with a scale of:
- 100% or higher ROI = Supreme (cost value)
- 90% to 99% = Great
- 75% to 89% = Very Good
- 67% to 74% = Good
Anything lower than a return of two thirds the cost you put into it, was not good enough for our list.
Enjoyment Factor is second highest consideration. This is the element that makes homeowners want to be in their home environment more as a result of the completed project. NARI and other organizations will survey homeowners periodically to check on such data and ours comes from December 2015, or later. This scale is:
- 100% = Top Notch (rare, but it happens)
- 95% or higher = Great
- 90% to 94% = Very Good
- 80% to 89% = Good
Curb Appeal is what prospective buyers are going to notice about a home from the street. If the home upgrade is an item that fits into this category, we decided it deserves to be considered third highest factor in terms of overall value. This is essentially a yay or nay type notation.
Energy Efficiency is a trending item in recent years and 2017 is certainly continuing on that trajectory. Some items on our list have very little to no impact on energy savings, but most do. This is the 4th most important factor we make note of.
Cost – inexpensive (lowest) to very expensive (highest) is something we chose to make note of as a factor that at least some owners would wish to consider. As cost value is already being considered, and most weighted, we decided to keep this as the lowest factor, while still realizing for some homeowners, it may be what is most doable for them.
We’ll also make notes regarding what each project entails, the longevity you can expect from completion of the upgrade, alternatives to the entry on our list, and some advice from us in how to implement the project or weighing of pros and cons among the entry item and its alternative(s).
An added note regarding cost. The ROI is our primary focus, as this means whatever the cost you actually spend on materials and labor, is what you can hope to get back at time of sale, but this does assume the sale is done relatively soon after the job is completed (generally within a year). We also indicate a cost range and median pricing point, or national average for the remodeling project. There are many factors that go into pricing any job and so the averages are likely best taken with a grain of salt, which is why the range is meant to provide a decent estimate of what is low and high end for the costs. This assumes a professional contractor is in charge of the project, and in general it assumes the house is around 2000 square feet. Where applicable, we all add in a price per sq. ft., which ought to help with realizing the price you can expect to pay for materials/installation of the work.
For the fun of it, we’ll go in reverse order. Our highest value item will be at the end and we’ll start with an item that is actually highly coveted by many home buyers. Cue up the gong sound, the top 11 list starts…. now.
#11 = Major Kitchen Renovation
Originally, our list was going to be 10 items, but in paraphrasing the wise words of Nigel Tufnel (Spinal Tap), “this list is better than the ones by those other blokes, because this one goes to eleven.” Actually, it goes to eleven for another reason, as a complete kitchen renovation is the third highest item on our list in terms of enjoyment factor. Usually, when any homeowner considers a first project for improving their living space, the kitchen is most desired. It is also the type of remodeling that prospective owners report as top consideration for what they look for inside a home; a well designed kitchen with all the modern conveniences.
The alternative to this project is a minor kitchen upgrade. The difference between the two is the renovation will physically change the design of the room, whereas minor upgrade will not. Both will address and refinish any surface in the room that needs a makeover. And both projects will likely replace older fixtures and appliances with up to date, energy efficient products. With a room redesign comes additional energy efficiency concerns that any professional home designer is fully taking into account. The complete renovation though is overall more costly, and is tied with most expensive item on our list (see #9). A minor upgrade, if truly an upgrade and not just a superficial upgrade is going to cost about half the total price of a major renovation, or at a median price point of around $30,000 (for upgrade).
ROI = Good
Enjoyment Factor = Great
Curb Appeal = Not Applicable (N/A)
Energy Efficiency = Yes, but minor
Cost factor = Very Expensive
Cost range / median price = $50,000 to $80,000 / $60,000
Cost per sq.ft. = Not available
Longevity = 20 years or more before minor upgrade would be considered