This project details removing an oil or gas furnace and replacing it with an electric heat pump that is appropriate for the climate zone. New for 2023 is the HVAC conversion project. Once the investment has been established, remodelers report having an easier time talking about other values a proposed project might have for clients. It can be reassuring to many prospective clients to know what a project might return if they must sell their property. Remodelers often describe using the CVV report to open a discussion about budget for proposed projects. This underscores an important point: The CVV report is specifically about establishing just one type of value-the dollar value at the time of sale. These discretionary projects do have great value for the owners who make the selections, reflecting a different kind of value-the satisfaction in living in their dream home.
There are vast differences in aesthetic tastes one person’s elegant new kitchen or bath will not be viewed by all prospective buyers equally. That’s because a “dream kitchen” or “luxury bath” conceived by a former owner may not include the finishes and selections that all buyers will value highly. Larger discretionary projects, such as upscale kitchen, bath, and master-suite remodels, don’t influence the value of the home nearly as much. They want workable kitchens and baths and don’t necessarily want to take on an interior remodel before they move in. Buyers are hyperfocused on hanging onto extra cash right now, especially if buying a house has put a big dent in their savings. Here, too, the rationale stems from how buyers are likely to feel, especially in today’s tight economy. The report suggests the average seller can expect an 86% return on a light touch to the kitchen and 67% on a modest bathroom reno. This year, there are two exceptions to the rule that exterior projects rate higher: a minor kitchen remodel and a midrange bath remodel. If, on the other hand, the home looks well taken care of, they enter with a more positive view from the outset. The reason for high returns on exterior projects stems from what real estate professionals regularly witness from buyers: If their first impression is a run-down exterior, they tend to enter the property wary and reluctant to spend large on the property. The survey supplies them with project specifications and cost estimates, along with photos and illustrations describing the projects, and asks for each remodeling project: “What value does this project add to the sale price of a home?” The value figures are derived from a survey of more than 6,000 Realtors. True to form, this year’s report confirms a consistent truth that has been revealed on every report for the last 30 years: Exterior replacement projects typically provide a higher return on investment than interior discretionary remodels at the time of house sale. Value (CVV) report detailing the home renovations that deliver the best return on investment. Zonda Media recently released the 36th annual Cost vs.
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