ORLANDO, Fla. – Whether it’s a kitchen redo or a new front door, homeowners who undergo a home improvement project often find that the task was worth the investment and time, according to the latest remodeling report from the National Association of Realtors® (NAR) with insights from the National Association of the Remodeling Industry (NARI).
The 2019 Remodeling Impact Report, an examination of 20 projects, surveyed Realtors, consumers who have completed home renovation projects and members of the National Association of the Remodeling Industry.
The report examined a variety of remodeling projects and used responses to rank the appeal of a given project, the value of the project in terms of resale and its overall functionality. The study also looked into the reasons for remodeling, the success of taking on the various projects and the increased happiness reported in the home upon completion of the job.
After completing a remodeling project:
- 74% of owners have a greater desire to be in their home
- 65% experience increased enjoyment
- 77% feel a major sense of accomplishment
- 58% report a feeling of happiness seeing completed projects
- 38% say they have a feeling of satisfaction
NAR calculated a “Joy Score” for each project. The score is based on the happiness homeowners reported with their renovations – the more pleased with a given project, the better the Joy Score, with the highest possible score being 10.
Interior projects that received some of the higher Joy Scores are complete kitchen renovations, closet renovations, full interior and individual room paint jobs, kitchen upgrades and basement conversions to living areas. Exterior jobs with the highest Joy Scores were new fiberglass or steel front doors, new vinyl and wood windows and new roofing.
A complete kitchen renovation received a top Joy Score of 10. Ninety-three percent of those polled said they have a greater desire to be at home since the completion of their kitchen, and 95% said they have an increased sense of enjoyment when at home.
The most important result of a kitchen renovation is improved functionality and livability, according to 46% of those polled. As to the reasons why they decided to take on the project, 24% say they wanted to upgrade worn-out surfaces and materials. Another 20% report they had recently moved into their home and had a desire to customize the kitchen to their particular tastes.
Upgrading home closets was another task that received a 10 Joy Score. This is due in part to the inconvenience of a disorganized closet, which is something a homeowner encounters daily, often at the start of their day. When a closet renovation is finished, the sense of achievement is immediate. Thusly, 68% of those surveyed say they feel a major sense of accomplishment when they think about the completed project. Nearly three-quarters, 72%, report having a greater desire to be at home since finishing the job.
With a closet redesign, 56% say the most important result is better functionality and livability. Fifty-four percent say the top reason for doing the job was the need to improve organization and storage. Fifteen percent answered that it was time for a change.
Full interior paint job
Completing a full interior paint job in the home scored a 9.8 Joy Score. A finished paint job is usually visible in every room in a home, which speaks to how important a task this is to respondents.
A vast majority, 88%, say they have a greater desire to be home since having their home freshly painted. Eighty-six percent report feeling a major sense of accomplishment when they think of the project.
New fiberglass front door
The installation of fiberglass front doors is a highly rated exterior project, receiving a Joy Score of 9.7. Seventy-nine percent of polled homeowners say they have had a greater desire to be at home upon completion of the job. Sixty-seven percent say they have an increased sense of enjoyment when they are at home, and another 69% state that they feel a major sense of accomplishment when they think of the completed project.
New vinyl windows
New vinyl windows also received a very high Joy Score, 9.6, while 42% of those surveyed say the most important result is improved functionality and livability. As for the top reasons for doing the job, 47% say they had a desire to improve their home’s energy efficiency and 23% say they wanted to upgrade worn-out surfaces, finishes and materials.
Remodelers often take on projects with resale in mind, rather than their own home preferences. The report found the top projects for recovering cost are new roofing, hardwood floor refinishing and new hardwood floor installation. NARI remodelers estimate that new roofing costs $7,500, and Realtors estimate that new roofing helps sellers recover $8,000, on average. That equates to 107% of value recovered from the project.
Also, NARI remodelers estimate that new wood flooring costs $4,700, with Realtors estimating the project helps sellers recover $5,000, or a 106% value recovery. NARI remodelers estimate that hardwood floor refinishing costs $2,600, and Realtors estimate that the hardwood floor refinishing would help sellers recover $2,600.
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ORLANDO, Fla. – A majority of younger baby boomers and older Generation X-ers aren’t planning to downsize with their next move, according to a recent survey by MKM Partners Quantitative Survey Group, commissioned by Del Webb.
Of the 57% of survey respondents who plan to move in the future, 65% prefer their next home to be either the same size (43%) or larger (22%) than their current home.
A clear majority (71%) expects to need more space in their next home, and they prefer a single-family home; 63% say they want three or more bedrooms. For Gen X-ers, more space is not so much a luxury but a necessity: 29% of the 50-year-olds surveyed said they would design their next home to accommodate aging parents.
“Today’s 50- and 60-year-olds are active and looking ahead to their next move,” says 2019 Florida Realtors® President-Elect Barry Grooms, co-owner of Sarabay Suncoast Realty Inc. in Bradenton. “Research shows there are more than 140 million Generation X and Baby Boomers in the U.S., and many of them are planning for a future with different goals, but they still will be active in the housing market as they realize their new dreams.”
Contrary to some other forecasts, these older adults aren’t seeking urban locations. A significant percentage of those surveyed want to stay away from the city, with 87% preferring a suburban or rural setting. When asked for a preference, 60% said they wanted their next home to be a “quiet, tranquil place where they can slow down and get some peace.”
Inside the home, most respondents still prefer open floor plans, but a shift toward a more traditional layout may be brewing: 34% said they prefer more defined space to open concepts, and 60% of Gen Xers and 48% of baby boomers still want a dedicated dining room in their next home.
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ORLANDO, Fla. – It seems parenthood adds another level of chaos to the homebuying process, according to the National Association of Realtors® (NAR) 2019 report, Moving With Kids. It explores the homebuying habits and seller preferences of people with children under the age of 18 years living in the home.Read More »
ORLANDO, Fla. – Homebuyers are showing more interest in technological home features these days. For example, 46% of new and prospective homeowners say they want a security camera on the premises, according to the latest annual survey from the National Association of Home Builders’ (NAHB).Read More »
ORLANDO, Fla. – Before tackling a home improvement project, Florida Realtors® recommends that a homeowner do a little research first. For example, if a home improvement project costs $1,000, how much money will the homeowner get back if he sells the home – what is the return on investment (ROI)? For 2019, a garage door replacement offers the best return, at 97.5% of costs recouped at resale, according to Remodeling Magazine’s annual Cost vs. Value Report.
The 2019 report surveyed more than 3,200 real estate professionals about returns for 22 projects in 136 U.S. markets, an increase from 100 markets last year. It compares the cost of popular remodeling projects to how much the investment will improve a home’s resale value.
For all projects, the overall cost-to-value ratio is 66.1 percent, which is slightly ahead of last year but well below the decade-high of 71.2 percent in 2014.
As in prior years, there are significant variations in different regions. The average payback nationwide for the 22 projects in the 2019 Cost vs. Value report ranges from a high of 123.8 percent for a garage door replacement in the Pacific region, to a low of 45.0 percent for an upscale master suite addition in the mid-Atlantic region.
Due in part to sharp increases in material costs, the percentage of costs recouped at sale time is trending downward for all the replacement projects. Material costs tend to comprise a greater proportion of replacement projects compared with larger indoor remodels, however, which have a higher percentage of labor costs.
2019 top 10 projects by percentage of cost recouped
- Garage door replacement (97.5%)
- Manufactured stone veneer (94.9%)
- Mid-range minor kitchen remodel (80.5%)
- Wood deck addition (75.6%)
- Siding replacement (75.6%)
- Steel entry door replacement (74.9%)
- Vinyl window replacement (73.4%)
- Fiberglass grand entrance (71.9%)
- Wood window replacement (70.8%)
- Composite deck addition (69.1%)
Highlights from 2019 report
- Rising materials costs impact rates of return
While the overall changes are modest, the latest Cost vs. Value report reflects the robust market the remodeling industry has enjoyed over the past year. But costs have correspondingly increased, and in some cases, significantly so. These increases are likely due to the tariffs that have roiled commodity markets, which have led to a slight downturn in the percentage of costs recouped for some projects; but overall, returns are up slightly compared to last year.
- Curb appeal projects continue to provide the highest returns
Nine out of the top 10 high-return projects are exterior replacement – or high curb appeal – projects. The three exterior projects with the highest recoup on investment are garage door replacement (97.5%), manufactured stone veneer installation (94.9%), and a wood deck addition (75.6%). Siding replacement and window projects also provided high returns, with the highest recouping interior project being a minor kitchen remodel (80.5%).
- New for 2019
Two new projects were added to the 2019 Cost vs. Value Report. The first is a roofing replacement job that adds standing-seam metal roofing. Compared with asphalt shingles, metal roofing costs significantly more but brings with it much greater durability. The second project is a revamp of the universal design bathroom, which was first introduced to Cost vs. Value in 2017. While the overall dimensions and features of the current project are comparable, the finishes and mechanicals – including tiled walls and shower, humidity-controlled ventilation and radiant-heat floors – are more consistent with an upscale project than the previous specs allowed.
- Think like a broker
The reason for high returns on exterior projects, and especially façade facelifts, stems from the valuations set by the real estate community. “Curb appeal” and “first impressions” are central to a real estate professional’s estimation of resale value. Granted, a home’s exterior will only persuade potential buyers to see more, and first impressions can vary from one individual to the next. But the impact these impressions make is critical in setting the stage for what a buyer is willing to pay for a home.
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ORLANDO, Fla. – If “all the world’s a stage,” as Shakespeare said, then a home is fertile ground for staging, too – and it can help sell that home, according to a new survey from the National Association of Realtors® (NAR).
The survey, NAR’s 2019 Profile of Home Staging, found that 83 percent of buyers’ agents say staging makes it easier for buyers to visualize a property as their future home. What is staging, exactly? It’s the practice of styling and furnishing a property for sale in a way that enhances its attractiveness to potential buyers. Fans of many homebuying and selling TV shows on HGTV or DIY networks are familiar with staging, how it works and ups the home’s appeal to potential buyers.
More than half of sellers’ real estate agents said that staging a home decreases the amount of time a home spends on the market, with 25 percent saying that it greatly decreases the time and 28 percent saying it slightly decreases the time, the report said.
TV’s impact on homebuyers
The report contains a new section called “Buyer Expectations,” which focuses on how home buying television shows impact Realtors’ businesses and how they’ve changed homebuyers’ views about the home buying process.
While 38 percent of respondents say that television shows on the home buying process have had an impact on their business, 32 percent witnessed no impact and 31 percent do not know if they have an impact.
The report found that 20 percent of buyers were disappointed by how “real” homes look compared to homes they saw on television shows; 39 percent of respondents found the home buying process more difficult than they expected; and 10 percent of respondents say that buyers felt homes should look the way they do when staged on TV shows.
Only 6 percent of buyers’ agents said that staging had no impact on buyers, while 40 percent said staging has an effect and 52 percent said staging affects some buyers.
Staging’s impact on the home sale
Buyers’ agents say that the living room is the most important room to stage (47 percent). The next most important are the master bedroom (42 percent) and then the kitchen (35 percent). Sellers agents agree but in reverse order. The guest bedroom is considered least important.
Forty-four percent of buyers’ agents report that staging increased the financial offer on a home; 25 percent say it increases its dollar value by 1 to 5 percent, and 12 percent said it increases the dollar value 6 to 10 percent. But 29 percent of buyers’ agents say it has no impact on dollar value. Only 1 percent of buyers’ agents felt it has a negative impact.
Sellers’ agents report even more value added from staging: 22 percent reported an increase of 1 to 5 percent in dollar value; 17 percent reported an increase of 6 to 10 percent; 5 percent reported an increase of 11 to 15 percent; and 2 percent reported an increase of 16 to 20 percent.
No sellers’ agents reported a negative impact from home staging.
When deciding which homes to stage, 28 percent of sellers’ agents say they stage all of their clients’ homes before listing them, while 45 do not stage homes before listing them, though they do recommend that sellers declutter their homes and fix any faults within the property. Another 13 percent said they stage only difficult-to-sell homes, and 7 percent stage only homes in higher price brackets.
Who pays for the home staging? The seller pays before listing the home 18 percent of the time, while sellers’ agents personally provide funds in 26 percent of cases; 17 percent of the time, agents will offer home staging services.
In addition to staging, 95 percent of agents recommend decluttering the home, 89 percent recommend an entire home cleaning and 83 percent recommend removing pets from the home during showings. Other pre-sale projects include carpet cleaning, depersonalizing the home and making minor repairs.
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ORLANDO, Fla. – Millennials are the largest buying force in the housing industry, according to the recent 2019 “Home Buyers and Sellers Generational Report,” released by the National Association of Realtors® (NAR).
This generation of buyers, between the ages of 21 and 38, account for 37 percent of all home purchases, the report found.
Older millennials – those ages 29 to 38 – make up the largest share of married buyers, at 69 percent, and are the most likely to have children under the age of 18 living at home, at 58 percent. Their top motivating factors for buying include the desire to own their own home (42 percent), the desire for a larger home (15 percent), relocation for a job (9 percent), a change in familial status (7 percent), and the desire for a home in a better location (6 percent).
Older millennials have a median household income of $101,200, according to NAR’s report, and purchase homes with a median price of $274,000. That’s comparable to Gen Xers, who have a median income of $111,100 and purchase homes with a median price of $277,800, and younger baby boomers ($102,300 and $251,100, respectively).
Millennials are the generation most likely to make compromises on their home purchases, the report found. They also plan to stay in their homes for 10 years – a shorter time than Gen Xers, who plan to stay 16 or more years.
Millennials also rely on real estate professionals when completing a home purchase, with younger millennials between the ages of 21 and 28 being more likely than any other age group (87 percent) to use an agent’s services.
Some of the top benefits that millennials said real estate agents provide are:
- Help to understand the process (72 percent)
- Point out unnoticed features/faults with property (58 percent)
- Negotiate better sales contract terms (49 percent)
- Provide a better list of service providers, such as home inspectors (49 percent)
- Improve buyer’s knowledge of search areas (41 percent)
- Negotiate a better price (35 percent)
The report found that millennials place high value on communication with their real estate agents. They value agents who personally inform them of all activities; send updates as soon as a property is listed, price changes and a warning if one goes under contract. They also like communication via text message or email, providing they address their specific needs.
Among features on agents’ websites, millennials found these to be most important: photos, detailed listing information, floor plans, information on recently sold properties and virtual tours. They found videos (23 percent) and real estate news or articles (8 percent) the least helpful, according to the report.
Additional millennial highlights from NAR’s report
- Commutes are a major factor in millennial real estate decisions. Commuting costs were one of the top factors weighed when choosing which home to buy.
- They often have financial help. Buyers aged 38 and younger are the most likely to receive a gift from relatives or friends to help with their downpayment to purchase a home.
- One in five younger millennial buyers is unmarried, and the share of single first-time buyers is growing.
- They’re fleeing the nest. Thirty percent of younger millennials lived with their parents prior to buying their own home.
- They’re searching for affordability. One in five younger millennials purchased a home in rural areas, and 13 percent in small towns. Those figures are the same for younger baby boomers.
- They want to stay close to family. Younger millennials – just like baby boomers and those from the silent generation – are the most likely to say they want to be near friends or family when they buy a home.
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ORLANDO, Fla. — Florida remained the top destination of foreign buyers purchasing U.S. residential real estate in 2018, with 19 percent of all foreign buyers who bought residential property in the United States. Florida Realtors® latest report, the 2018 Profile of International Residential Real Estate in Florida, finds that international sales accounted for $22.9 billion this year, down slightly (5 percent) from $24.2 billion in 2017.Read More »
ORLANDO, Fla. – Want to update your home or business property and give it a new look? For value and satisfaction, think about doing an outdoor remodeling project, according to the National Association of Realtors®’ (NAR) and National Association of Landscape Professionals’(NALP) 2018 Remodeling Impact Report: Outdoor Features.
The report looks at 13 outdoor residential projects and 10 commercial property projects, highlighting the reasons why property owners complete these projects, the value – both financial and emotional – that these remodels bring, and the increased happiness the finished projects bring homeowners.
When asked which outdoor projects produce the most substantial financial payouts at resale, Realtors ranked standard lawn care service at the top, which recovers 267 percent of the project cost at resale. Next, Realtors named landscape maintenance and tree care, both recovering 100 percent of the cost at resale, and installing an irrigation system, recouping 86 percent.
When it comes to the enjoyment homeowners gain from these projects, a fire feature and irrigation system tied for first, both receiving a perfect Joy Score of 10. Joy Scores range between 1 and 10: Higher figures indicate greater joy from the project.
Eighty-three percent of homeowners who installed a fire feature said they have a greater desire to be home since completing the project, and 69 percent of homeowners who installed an irrigation system said they feel a major sense of accomplishment when they think of the project. The next most appealing projects were a new wood deck (Joy Score of 9.8), a water feature (9.8), statement landscaping (9.7) and an overall landscape upgrade (9.6).
This year, the report also covered outdoor projects for commercial properties. The report found that 43 percent of Realtors have suggested a commercial client improve the curb appeal of a property before listing it for sale. The most frequently recommended projects are standard lawn care (39 percent), completing a landscape management service (27 percent) and an overall landscape upgrade (26 percent).
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ORLANDO, Fla. – Buying a home, packing and moving into it is already hard enough. When there are children involved, too, it adds a different set of requirements and stresses, according to the 2018 Moving with Kids report from the National Association of Realtors® (NAR).
For families, moving with children often means a lot of planning and research. Finding a home with the appropriate amount of space, in your preferred school district, and convenient to a job or school location are often priorities for buyers with families.
Using information from NAR’s 2018 Profile of Home Buyers and Sellers, the report explores the unique needs of homebuyers and sellers with children under age 18.
“For about 50 percent of all buyers, finding the right property in the right location was the most difficult step in the home search process,” noted Eric Sain, Florida Realtors® 2018 president-elect and 2019 president. “Families realize that having a Realtor with local market expertise and a broad range of resources to guide them through the process makes it a lot easier to find the right place to call home. In fact, the study found that 87 percent of all buyers purchased a home through the help of a real estate professional.”
- The average buyer with children under 18 purchases a 2,100-square-foot home with 4 bedrooms and 2 bathrooms, while the average buyer with no children chooses a 1,750-square-foot home with 3 bedrooms and 2 bathrooms. Both groups prefer a single-family, detached house.
- Unsurprisingly, schools play a critical factor in the purchasing decisions of buyers with children: 50 percent with children say the quality of a neighborhood’s school district is important compared to 11 percent of buyers without children. Convenience and proximity to schools is also a crucial consideration with 45 percent saying it’s an important factor compared to just six percent of buyers without children.
- 27 percent of buyers with children said childcare expenses delayed the process of buying a home. Those expenses also had an impact on the buying process, forcing buyers with children to make compromises on the house they purchased: 30 percent compromised on the size of their home, 29 percent on the price and 22 percent on the condition.
- Buyers with and without children – 87 percent each – relied equally on the help of a real estate agent during the buying process.
- When it comes to selling a home, 24 percent of those with children chose to sell because their house was too small. Only 8 percent of people without children at home sold their house for the same reason.
- When sellers were asked what they want most from their agent, 22 percent of those with children said they wanted their agent to sell their home within a specific timeframe compared to 20 percent of sellers without children. However, sellers both with and without children expect their agents to provide a broad range of services and manage most aspects of their home sale, 80 and 79 percent respectively.
- For sellers with children, urgent is the word that most often describes their selling situation: 26 percent of sellers with children qualified their need to sell as ‘very urgent’ compared to only 14 percent of sellers without children.
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