For this year's post on remodeling, I'm using the NAR report which actually came out in April of 2025. There are other remodeling reports, which are based on national regions, however, this time I'm referring to the NAR report because it also includes what REALTORS often recommend to their sellers based on what they are seeing in the local market and the shift in home preferences. This is a 29 page report put together by the NAR Research Staff and the organization's Chief Economist and Deputy Chief Economist, Lawrence Yun and Jessica Lautz.
Four main areas of report discuss Top Joy Scores and Cost Recovery, REALTOR Perception of Demand, Consumer Approach to Remodeling and Methodology. If you'd like to see the entire document, please just ask, my contact information is below for call or text.
As many sellers in the current market are discovering, home buyers are less willing to compromise on the condition of the home. Expectations are high, and buyers attitude towards DIY projects is much lower than in years past. There can be several reasons for that, but there is a clear trend in shorter days on market for improved and well staged properties.
The three top projects that received a perfect Joy Score of 10 were an added primary bedroom suite, a kitchen upgrade, and new roofing. In addition, REALTOR estimates of likely dollar value added to the house at resale was compared to the estimated cost of each project provided by National Association of Remodeling Institute members, the highest percentage cost recovered on a project was 100% for a new steel door. Out of 12 listed projects in the report for highest to lowest cost recovery, a bathroom renovation brought 50%, while a complete kitchen renovation brought 60% of cost recovery. Why? Possibly because home buyers have come to expect these two areas to be renovated in all homes they see, whereas vinyl windows brought a 74% cost recovery. Out of the 12 projects under Joy Score, a new garage door was the lowest at 7, with a new front door at 7.5 (yet these two projects may uplift the overall exterior appeal of the home to many buyers).
REALTOR perception of demand: "REALTORS® often suggest a homeowner take on a project remodel before attempting to sell their home. The top projects REALTORS® recommended potential sellers take on are painting the entire home, painting one room, and new roofing.
Since 2020, REALTORS® have seen home preferences shift. The top remodeled areas NAR members have seen an increased demand for in the last two years have been kitchen upgrades, new roofing, and a bathroom renovation." While not everyone has a complete kitchen and bathroom renovation in their budget prior to selling, painting is one of the top recommendations to prepare a home for the market. And, new roofing in today's insurance market may be absolutely essential if it is past a certain age, in order to both make the buyer happy and not present any insurance issues before closing.
Consumers generally remodel to replace worn out surfaces and materials, and 54% used a line of credit to pay for the project. Consumers are looking for better livability and better functionality.
More in depth information is contained in the NAR report and more information on remodeling can be found at https://remodelingdoneright.nari.org .
Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996
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