The Appraisal Institute (AI) is encouraging homeowners to focus on cost-efficient improvement projects when seeking to improve their property’s value during the ongoing coronavirus pandemic, according to a release on the AI website.
“In today’s competitive real estate market, the Appraisal Institute believes home remodeling and renovation projects are important and sometimes necessary aspects of homeownership when undertaken properly,” Appraisal Institute President Rodman Schley said in the release. “However, not all home improvement projects offer a full return on investment – cost doesn't necessarily equal value.”
According to Remodeling magazine’s most recent cost vs. value report, the projects with the highest expected return on investment are garage door replacement, manufactured stone veneer, minor kitchen remodel and siding replacement. Other projects with potential payoffs, according to the report, are window replacements, deck addition and steel entry door replacement.
It’s also noted that homeowners may find it best to hold off on big renovations if they’re unsure how long they will be in their property. The longer a homeowner stays, the greater the opportunity for a potential return on investment. However, regardless of cost, some home improvement projects can be worthwhile simply because they improve the owner’s quality of life.
For example, AI points out, the pandemic has allowed many people to work from home. While the pandemic continues, now may be a great time for owners to update their home office space. It is essential the office space is organized and bright. Homeowners should consider simple updates like paint or lighting changes.
Schley encouraged owners to upgrade elements of a home that will help ensure that the property meets community standards, reflects neighborhood norms and complies with local housing codes. He also noted that undertaking home improvement projects also can stimulate the building and construction sectors of the economy, which were impacted by the recent economic downturn.
“In today’s competitive marketplace, professional appraisers provide homeowners with the confidence to make practical remodeling and renovation decisions that likely will be smart choices financially,” he said.