Harvard’s Joint Center for Housing Studies announced recently that the outlook for home remodeling in 2021 is looking brighter than expected. The pandemic has provided a very unexpected 2020 with insecurities surrounding the economy, the real estate market, and the future’s overall outlook. After enduring 2020 and finding resiliency in our economy, the Remodeling Futures Program at the Joint Center for Housing Studies at Harvard anticipates a nearly 5% increase in remodeling during Q1 2021.
“Annual expenditures for renovation and repair of the owner-occupied housing stock are expected to rise from about $332 billion in Q4 2020 to around $337 billion by the second half of 2021,” says Abbe Will, Associate Project Director in the Remodeling Futures Program at the Joint Center.
If you’ve been waiting to see what everyone’s doing, now you know straight from Harvard’s projections. However, let’s not get crazy with home remodeling projects as cash flow and budgets are real. When you’re considering a remodel, you want to be sure to get the most out of your remodeling finances.
What Improvements Add the Most Value to a Home in California?
Each renovation has a contribution to your home’s value, and you want to be sure to get the most bang for your buck. While returns have been on the decline for a decade, so has the housing market availability. Therefore, many homeowners choose to reconfigure their existing home than brave the “Sold” market with bidding wars. Instead, invest and remodel in place.
While most people thinking about remodeling have a large list of what they would like to accomplish in your home, let’s review what will give you the most significant impact on home value. You’ll want to compare your list to this list and start chipping away at the highest return on investment items first. You also want to consult with a design-build firm to see if any of the items on your list can leverage value engineering and save some money and/or time.
To learn more about what Sea Pointe Design & Remodel can do to help you realize your remodeling goals, click here.
Excellent Curb Appeal
First impressions are exactly what they say and why this lands top on the list of items that retain their value. The list of home improvements for the exterior may include new windows, painting, new garage door, new exterior siding, and a new front door. Did you know that certain front door colors earn a premium? Zillow 2018 Paint Color Analysis found homes with charcoal, smoky-black, or jet-black front doors sell for a $6,271 premium. FANCY that!
Another route for curb appeal in southern California is landscaping. You may want to consider saving some monthly upkeep and selecting a beautiful desert-scape that would also be appealing to home buyers for the same money-saving purposes.
Below are the returns you can expect based on Remodeling magazine’s research.
Steel Entry Door Replacement (Big Energy Efficiency Trend)
Garage Door Replacement
Vinyl Window Replacement
Manufactured Stone Veneer
Make the Home Feel More Spacious
Another clear indicator of value is spaciousness; just like a 2,000 square foot home is more expensive than a 1,500 square foot home, so is a home that has an open feel of more space. Sometimes, knocking out the right wall and creating an open concept living area will give you more value than expected.
Harvest the Sun
If there’s one thing we have earned with our property values in Southern California, it’s the 365 days of sunlight that we enjoy; okay, maybe it’s only 350 days of sunshine, but we certainly are spoiled and have plenty of it, so let’s put it to work. Harvesting this sunshine all year round will save you plenty on your electric bill.
Be sure to consult with a solar solution expert and your tax professional as there are plenty of different solutions that also have other benefits. Look at the pros and cons of each solar energy solution available before signing an agreement with a solar panel company.
How Fire and Water Can Help
While we may not understand why man is consumed with fire and water, it’s a reality that we can leverage in home values. Gas burning fireplaces are affordable and offer intimacy and intrigue in your living space. Gas burning stovetops are as beautiful as they are functional these days. See for yourself below.
Faucets and fixtures are another affordable way to add value and intrigue to your home; consider changing out your kitchen knobs, pulls, and faucet to gold to add a whole new appearance to your space. Affordable, and it gives a significant design change to anyone that sees the space; the pop of “on-trend” will make your home show as though it is newer.
And while interior design provides three different lighting types, our favorite kind is the 4th type, sunshine. You hear it frequently in home design, more natural light. While we cannot live in glass houses (nor do we want to), we can increase our windows’ size to let more light in or remove soffits that block light. You may also consider adding additional windows to your home or a skylight.
Adding a Smart System
Another valuable home renovation is investing in smart home technology. These days you can have a smart doorbell, smart thermostat, smart bed, smart fridge, smart toilet, and much more. One proven smart system that increases value is a home alarm system. Be sure to look for multi-function smart systems as some smart systems can support multiple functions you want to automate in your home.
How We Can Help
When you’re ready to remodel your home, contact Sea Pointe Design & Remodel and we’ll share with you why design-build is the best way to save money, time, and headaches on your next remodeling project. We have had a reliable system since 1986 that enables us to continue to deliver stunning designs with quality craftsmanship.
Sea Pointe Design & Remodel is ready to help you with your remodeling dreams. Learn more here.
Over 50% of our business comes from repeat customers or customer referrals, which is an excellent testament to our work’s quality and value. You can also check our thoughtful reviews from our satisfied clients here.
When considering remodeling one of your largest investments, there is a lot of homework to ensure you have made the right decisions. You have financial options you will want to discuss with your tax professional. You will want to discuss your current home floorplan with a designer to see if your remodeling punch list has any efficiencies within it. Once you have done your research and ready to remodel, you’ll feel more confident and excited about the process, knowing you’re making good financial choices, beautifully functional design choices, and are ready to enjoy your new space.