Complete Smart and Necessary Home Renovation Projects: Appraisal Institute
May 11, 2021 08:00 AM
CHICAGO (May 11, 2021) – The Appraisal Institute, the nation’s largest professional association of real estate appraisers, today encouraged homeowners to focus on cost-efficient improvement projects when seeking to potentially improve their property’s value during the ongoing coronavirus pandemic.
“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,” said Appraisal Institute President Rodman Schley, MAI, SRA. “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.
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, 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 that 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,” Schley said.
For an unbiased analysis of what their home would be worth both before and after an improvement project, a homeowner can work with a highly qualified real estate appraiser – such as a Designated Member of the Appraisal Institute – to conduct a feasibility study.
The Appraisal Institute is a global professional association of real estate appraisers, with nearly 17,000 professionals in almost 50 countries throughout the world. Its mission is to advance professionalism and ethics, global standards, methodologies, and practices through the professional development of property economics worldwide. Organized in 1932, the Appraisal Institute advocates equal opportunity and nondiscrimination in the appraisal profession and conducts its activities in accordance with applicable federal, state and local laws. Individuals of the Appraisal Institute benefit from an array of professional education and advocacy programs, and may hold the prestigious MAI, SRPA, SRA, AI-GRS and AI-RRS designations. Learn more at www.appraisalinstitute.org.