2025 Remodeling Impact Report by National Associations of REALTORS

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 buyer 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 buyer 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

What Is the California Tax Withholding for Buyers and Sellers?

Kitty says "Keep your eye on your withholding tax"

Very often sellers are unaware of this California tax withholding requirement to pre-pay their tax due on the gain of their property, and may equate it with capital gains tax or property taxes.

For income property sellers, and those doing property exchanges, installment sales and other transfers, this information may be most important:

The escrow officer must notify the buyer of his/her responsibility to withhold 3 and 1/3 percent of the gross sales price of real property sale, whether by an individual or non-individual such as an LLC, corporation, trust, etc., and pay it to the Franchise Tax Board, UNLESS an exemption applies.

The exemptions include sales less than $100,000; property last used as a principal residence; sales of decedent's principal residence by the estate; sale by 1031 exchange; seller's tax liability, calculated at the maximum rate (currently 12.3%) on the taxable gain, regardless of seller's actual rate, will be less than 3 1/3% of the gross proceeds and seller certifies that fact under penalty of perjury. 

For sellers in the pre-listing stage who are wanting to calculate their ultimate seller's net after a sale should be sure to give all such information to their tax adviser, if that is who is doing their calculations. Escrow is responsible for notifying the buyer of their responsibility to withhold, and the buyer must do so when escrow closes.  If the seller's actual tax rate is different than 12.3% above, then they need to consult with their tax advisor on the status of their particular state income tax requirements. 

See more information from the Franchise Tax Board  .


Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

See Inside a Listing Styled by a Former White House Decorator

While not all property owners can afford a high-end decorator, there is no doubt that preparing properties for sale with some professional resources for advice is a benefit to the home seller.  It's not unusual for investors to redo a home for sale, and spend hundreds of, if not several thousand, dollars to make it appealing to a new buyer. Buyers have come to expect this, having been trained by television shows making it look easy to do this, even though the show(s) typically don't show the behind-the-scenes months of actual work performed to achieve the finished product.  But sellers can still go a long way, keeping expenses very reasonable, to add the selling appeal to their property.  Adding appeal to a property does not require an expensive remodel in order to sell, but it does mean looking at the property from the buyer's point of view.  If you take just some of the ideas from the following sources, you will be able to make your home stand out!

For the story of a Newport Beach property staged and decorated by the decorator who worked for President and Mrs. Obama, as well as many celebrities, please don't miss the photos at the following link.  See Inside a Listing Styled by a Former White House Decorator

To read 50 tips on boosting your property's appeal, see 50 Cheap, Easy Ways to Boost Your Listing’s Appeal

For tips on preparing your outdoor space (and some of these tips may work for indoor space too) see this article The 5 Biggest Yard and Patio Staging Mistakes

The first clue to your home's interior is your entryway, so meet the buyer's expectations from the beginning by a good door refinishing or paint job, and the buyer will have a more favorable impression from the beginning.   Top Entryway Decor Ideas for 2017

The Powerful Effect of Clutter

A search on these words pulled up pages and pages of references on Google, which claimed over 7 million results.

According to these, there are psychological results, medical effects, happiness impacts, how it decreases productivity, how it affects your brain, the list goes on and on.

You can solve your clutter problems by getting a coach, getting therapy, using feng shui, stop overeating, clean off your messy desk, even using flower essences, or learning to overcome hoarding. You can stop buying stuff you don't need--it could be that simple. But we live in a society that manufactures more and more for us to take home, just look at the cargo containers arriving at the port before Christmas, where we associate buying with bringing happiness or fulfillment.  

Really, what is clutter? Merriam-Webster dictionary says: "to fill or cover with scattered or disordered things that impede movement or reduce effectiveness, a room cluttered with toys," or according to Oprah: "Clutter is anything that stands between you and the vision you have for your best life."    It's stuff you keep accumulating, bring into your environment, and don't find a place for it where it's out of your way until you really need it.  It's stuff you really don't have a purpose for, and haven't used or no longer use. Yes, there have been studies done, article in journals, all about people with messy desks or messy lives, but how long do you need to sit around and analyze and rationalize this? Don't you  really want to be more effective, and move freely?

It's time to get on top of things, literally.  It's time to stop denying that you have too much stuff, that you have lost control of keeping order in your own home.  Admitting you have a problem is the first important step, where have you heard that before?

When does this become a problem in the real estate world?  When people decide to sell their homes.  To put off the pain of parting with objects, they tell themselves that buyers actually want to come in and view all their stuff, all the while trying to see past it with the ultimate purpose of really finding a home they can love with their stuff in it.  This is not how it really works. All that clutter (to you, precious objects, to them, clutter) is a huge distraction for them, they don't know what to focus on as they look around this house.  And all your possessions are a distraction to you, it's a big job to decide about all those things, it's stultifying, and you can get locked in a quagmire. But you can manage it.

I don't know which method of decluttering will work best for you, but choosing one and following it will eventually lead you to a less complicated existence, which  I believe is a more rewarding way of life.  Try donating, having a yard sale, or going around your house and marking things that you will allow to leave you with a sticky, and then eliminate those things. Search for recycle centers in your area, or donate your car.  Other people may be helped by what you are ready to let go of.

When you make more space in your home, you make more space in your life where new and interesting experiences are allowed to enter.

If you're thinking of selling, please contact me, we can review the entire process to make it as painless as possible.