Housing statistics all over the country show that the nation’s real estate market is cooling from being red hot over the past few years. Even before the pandemic, housing inventory was a significant issue. Now that the market has cooled, homebuyers are finding more choices than they would have a few months ago.
While buyers are enjoying the increased housing inventory, the flipside is that sellers are now looking for ways to make their property more attractive to prospects. One way to bolster a home’s appeal is to take a close look at renovations. But which renovations get the most “bang for your buck” with homebuyers?
That’s where the National Association of Realtors® (NAR) comes in. A few months back, they released their 2022 Remodeling Impact Report. In this report, researchers took a deep dive into why a homeowner remodels, the outcome of taking on projects, and the increased happiness in the home once a project is completed. The report also contains the typical cost of 19 remodeling and replacement projects, as estimated by members of the National Association of the Remodeling Industry (NARI).
So what were the main takeaways from this report? Dr. Jessica Lautz, NAR’s Vice President of Demographics and Behavioral Insights for Research, observed, “This year, the winner was hardwood flooring. Hardwood floor refinishing and putting in new wood flooring had the most significant value, and these projects also had high Joy Scores (calculated by NAR for each project based on the happiness homeowners reported with their renovations) among homeowners. Hardwood flooring looks beautiful in photos and videos, can be easier to clean for new pet owners, and adds warmth to a home that is appealing to both home buyers and homeowners.”
Interestingly, hardwood floors were more desired than kitchen-related projects. “While most of us spend a great deal of time in the kitchen—eating, cooking, working—the kitchen-related project does not bring the highest return on value or the highest Joy Score, according to this year’s report. This may already be an aspect of the home that is highly customizable with features and finishes, and we all use the kitchen differently, so there is room for interpretation of the overall return,” said Lautz.
And so, if you’re looking to sell your home in a more competitive market, the key to getting more offers might be that hardwood flooring project. But whether it’s a buyers or sellers market, utilizing the expertise of a Realtor® will help ensure that you get the most out of your most valued investment. Realtors work for their clients and communities in all kinds of markets. That’s Who We R®.