Survey finds renovation trends have shifted, but still worth the effort

Published 7:00 am Saturday, December 2, 2017

A new survey released by the National Association of Remodeling Industry shows that some of the work previously known to provide the highest return when you sell your home has declined in value.

Previously, total renovations to bathrooms and kitchens were said to provide the homeowner with the highest return on their investment.

Pearl River County Board of Realtors Association Board President Eric Bradley said that’s no longer the case. He said the change is due to the increasing popularity of home renovation television shows, which have led to increased prices being charged for those renovations, both in products and construction services.

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According to the NARI survey, some of the things that now provide the biggest return on investment include upgrading a home’s insulation and roofing. Insulation upgrades typically cost $2,100, of which the homeowner can expect to recover $1,600 in increased value when the house is sold, the survey states.

New roofing can cost an average of $7,500 but provides an increased value of $8,150 on average, the survey states.

Bradley said that many homeowners may also be enticed to upgrade countertops to granite, which can increase the value of a home, but not to the level of the expense involved in installing it.

His best advice to homeowners who intend to spend 10 years or more in their current home is to perform improvements they will enjoy most. That’s because most of the value of those improvements will be lost by the time the home is sold.

Take for instance an in-ground salt-water pool. While that addition may increase the home’s appeal to a buyer, it will only increase the value by about $10,000, which won’t be enough to recoup the costs associated with its installation.  The same is true for complete kitchen and bathroom renovations.

Bradley also advised homeowners to consider the materials they use in their upgrades. Years ago, marble countertops were popular, but the material’s propensity to crack under heat is an issue. That led to an increasing popularity in granite countertops. Today, polished concrete products are also becoming popular as countertops.

If flipping homes is the goal, the buyer will need to renovate and sell the home quickly to make a profit because the interest clock is ticking. However, Bradley said the best time for flipping homes has passed because a lot of the available homes were bought right after Hurricane Katrina, and those investors are holding onto those homes for use as rental properties.

But, Bradley said the market is due for resurgence, especially if operations at Stennis Space Center surge.