Nationally, 67 percent of consumers plan home renovations before the end of this year, according to a spring survey conducted by a REALTOR® website. The kitchen and bathroom top the list of preferred renovation projects.
The Home Improvement Survey by realtor.com found over two-thirds of more than 1,500 homeowners surveyed in May 2014 plan to renovate an area of their home within the next six months. Twenty percent of those who plan to remodel also plan to list their home for sale before the end of 2014.
Top reasons homeowners gave for remodeling are greater enjoyment of the home and improved appearance, according to the survey. Thirty-two percent of homeowners want to improve the aesthetics/enjoyment of their home, while 22 percent said they were preparing to put their house on the market. Nineteen percent of those surveyed recently purchased a home needing renovations and 11 percent wanted to improve the value of their home.
Like last year, the most common budget range for home improvements is between $2,000 and $10,000. Twenty-two percent planned to spend between $2,001 and $5,000; 19 percent between $5,001 and $10,000; 18 percent $10,000 and $20,000. Fourteen percent were willing to spend more than $20,000 for renovations.
Homeowners are most likely to spend that money remodeling kitchens (61 percent); bathrooms (59 percent); backyards or patios (33 percent); and exterior of the home (32 percent).
"The kitchen is usually where buyers put their emphasis on and decision on buying a home," said David Tonna, president of the Silicon Valley Association of REALTORS®. "The kitchen also tops the list among indoor remodeling projects because kitchen styles change more than other areas in a home."
A kitchen remodel can recoup substantial value at resale. The 2014 Remodeling Cost vs. Value Report, which compares construction costs with resale value for 35 remodeling projects in 100 markets nationwide, an attic bedroom and a minor kitchen remodel are two top interior projects expected to recoup significant value.
In the San Jose area, a minor kitchen remodel with an average cost of $23,309, is estimated to return 133.8 percent of costs and have a resale value of $29,842. The attic bedroom remodel estimating to cost $60,623, is expected to recoup 136.3 percent of cost, with a resale value of $82,611. A midrange bathroom remodel job is estimated to cost $19,889 and recoup 108.6 percent of costs, with an estimated resale value of $21,600.
"Every market is different, and the desirability and resale value of a particular remodeling project varies, even among neighborhoods," cautioned Tonna. "It's always best to ask a REALTOR® about what improvement projects provide the most value upon resale in the area where you live. You can also talk to sellers to see if they took on any remodeling projects before listing their home."
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.