When preparing to sell their houses, homeowners typically consult several home improvement studies to help
them choose which renovations would yield the highest return on investment (ROI). The annual Cost VS Value
renovation study from Remodeling Magazine is arguably the most well-known of these assessments. The yearly
study, which was co-written by the National Association of the Remodeling Industry (NARI) and the National
Association of REALTORS (NAR), "aims to answer a specific question: What value does a given remodeling
job contribute to the sale price of a home? ”
In earlier research, NARI supplied an estimate of the expenses of certain upgrades, and participating Realtors
responded to survey questions to ascertain the significance of particular improvements to homebuyers in
specific markets.

The methodology has evolved over the last two years to include more complex factors, such as
local gross domestic product, existing home sales, existing home values, changes in existing home sales,
existing home values, and new home housing starts, among others, all of which affect the sales price of existing
homes in particular markets. The reasons why homeowners remodel their houses, the results of the tasks they
undertook, and the "happy factor" or "Joy Score" when the project is over are now more important
considerations for realtors when giving their thoughts.
The Cost VS Value study from 2022 demonstrates how housing preferences have altered recently. The desire
for homeowners and homebuyers to live in homes with certain qualities that they previously lacked or that they
believed would make their lives and that of their families happier and more comfortable went on. As families
dealt with school closings, companies laying off employees, and many former commuting workers working
from home, the current pandemic continues to have a significant impact on how people see work-life balance.
These elements affected not just where and how individuals chose to live, but also the magnitude and extent of
remodeling projects they undertook.

More than four in five homeowners stated that they would have renovated their homes even if the pandemic
hadn't happened for a variety of reasons, including to replace outdated surfaces, finishes, and materials (30%);
to add features and improve livability (20%); and simply because it was time for a change (16 percent). The
majority of customers are happy with the overall outcome and indicated wanting to stay in their houses longer
following renovating. Money isn't everything; the Joy Score is equally important.
NAR provided an estimate of the value each interior project would add to the home at resale, and NARI
calculated a Recovered Project Cost percentage.

Several interior projects received a perfect Joy Score of 10:
paint the entire interior of the home, paint one room of the home, add a new home office, refinish hardwood
flooring, and install new wood flooring. Refinishing hardwood floors, new wood flooring, and insulation
improvement had the greatest percentage cost recoveries for interior projects, according to NARI, at 147
percent, 118 percent, and 100 percent, respectively. New roofing and a new garage door, both at 100% cost
recovery, were the outside renovations with the greatest percentage. Vinyl siding recovered 82 percent of the
expenditure, whereas fiber cement siding returned 86%.

The report's finding that, while having high Joy Scores, the two most expensive renovations—the kitchen and
bathroom—don't provide as much ROI is also intriguing. The expected ROI for a fully renovated kitchen,
which costs around $80,000, is just about $60,000, but the project has a high Joy Score of 9.8. With a Joy Score
of 9.6, a full bathroom makeover costs about $35,000 but only adds $25,000 to ROI. An approximate $45,000
partial kitchen makeover yields a ROI of just $30,000 but a Joy Score of 9.8. A new bathroom could cost
$80,000, but its ROI is just $50,000, and its Joy Score is only 8.2.
As a homeowner, you might be more concerned with bills than with how your lifestyle or home's resale value
would change.

So, how much does remodeling a home truly cost? A minor remodel, which includes painting,
minor repairs, and new landscaping, runs between $25,000 and $45,000, a moderate remodel, which includes
kitchen and bathroom renovations, is between $46,000 and $75,000, and a major remodel, which includes
foundation, roof, and sewer repairs, costs $76,000 and up, according to Time.com and NextAdvisor.com.
Depending on where you live, the size and age of your home, and the extent of the renovation, costs may be
more or cheaper than usual. The cost of supplies, rules and other laws, and labor rates can all differ
significantly.