Get Ahead of Important Home Renovation Projects in 2022, Appraisal Institute Says
February 18, 2022 08:30 AM
CHICAGO (Feb. 18, 2022) – The Appraisal Institute, the nation’s largest professional association of real estate appraisers, today encouraged homeowners to focus on energy-efficient, safety-oriented and work-accessible improvement projects when seeking to potentially improve their property’s value.
“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 Jody Bishop, MAI, SRA, AI-GRS, “However, not all home improvement projects offer a full return on investment – cost doesn’t necessarily equal value.”
According to Architecture Digest's, "10 Renovation Trends You'll be Seeing a Lot of in 2022," digital interior design was on the rise even before social distancing and working from home became the norm after the surge of the COVID-19 pandemic in 2020. In 2022, the industry is shifting towards newer technologies such as virtual staging, furniture shopping with 3D models and implementing artificial intelligence products for school, work and to make our homes smarter.
In addition, the article notes that green homes are a trend to be on the watch for. The onset of the pandemic has made the importance of health and environmental awareness top of mind. Reusing furniture, repurposing flooring and adopting sustainable materials and lighting that consumes less energy will be popular in the upcoming year. Expect to see landscaping that is eye-catching yet protects, especially in areas prone to wildfire or flood, as well as exterior walls of brick or stone. There is an ever-increasing attention to sustainable options like bamboo or cork. Solar panels on the roof that take eco-friendliness even further may also bring added value.
The concerns from the pandemic led to realizations about safety and storage in the home, according to Bob Vila's remodeling trends for 2022 predictions. HVAC units with “whole house” air filtration systems or anti-microbial tile could also become more common. "Many households now have several generations under one roof, and that means accommodating the difficulties the elderly might have with their day-to-day lives. To that end, expect to see many people renovating their homes for aging in place, complete with roll-in showers, grab bars, and nonslip flooring."
The pandemic has allowed many people to work from home. Although normal life is slowly returning, many still have the option to work remotely. Owners interested in remodeling or selling should consider the use of multifunctional rooms and updating spaces that can serve as study halls and work zones, complete with fast Wi-Fi connections, virtual meeting setups, comfortable seating and plenty of charging stations, according to another 2022 trend prediction. It is essential that the office space is organized, functional and bright. Homeowners should consider simple updates like paint or lighting changes. Instead of using the dining room table or corner of your bedroom as a space to focus, expect the trend to move toward carving out dedicated spaces for functionality.
“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,” Bishop said.
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, Bishop added
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, celebrating its 90th anniversary in 2022, is a global professional association of real estate appraisers, with over 16,000 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.