EDMOND — Have you ever heard of refinancer’s remorse or home remodeler’s remorse?
Buyer’s remorse is real, and it certainly affects homebuyers caught in multiple-offer situations who ended up paying more for a house than the sellers themselves asked for.
Maybe not, but probably, with buzz that housing bubbles are starting to buzz again. A burst bubble in a local market, which is the only kind of housing market, makes per definition damage to the prevailing market prices.
We will see what damage foreign investors do here if they find they have overplayed this local market and paid too much and decide to cut their losses.
Refinancer’s Regret? My wife and I just did a cash-out refi and I’ve had a twinge or two: Oh, Lord, what have we done to our equity?!
Lost it, it was, and for something that’s a great antidote to refinance man’s remorse: remodeling this old house we’ve lived in for almost 23 years, or at least doing some upgrades and repairs.
Just in time, some remodeling ideas came from a survey by the National Association of Real Estate Agents and the National Association of the Renovation Industry.
Repainting the interior, adding a home office, installing hardwood floors and renovating cabinets all earned a perfect “Joy Score” of 10, according to the study, 2022 Remodeling Impact Report.
Cool. Repairs are on our list, and new light fixtures, a little landscaping, some long-delayed plumbing repairs, and a bathroom remodel, so involved, will be more of a rescue.
Our interior paint is OK and a spare bedroom has been my home office since 1999 and is fine as is.
Maybe we should pivot and go for fresh paint and new flooring instead. We could use more joy in life. Who couldn’t?
No, getting our second bath back in service alone will make us jump for joy. But it might inspire us to do more. We didn’t want to be alone. In the survey, 86% of respondents said that remodeling one area of their home then inspired them to remodel other areas.
Rather, it inspired most of them to hire a remodeler, at least for some of the work.
More than a third of homeowners who responded, 35%, hired a professional for their entire project, while 28% said they hired someone for the job but bought the materials themselves, and 22% did the entire project themselves from start to finish.
We get someone in for the plumbing work because it will probably require tearing up the floor and we are not plumbers or floor blasters. Someone will be brought in to take care of the new lights because we are not electricians either.
Bad knees and feet—requiring surgery, postponed again and again because of our worries about COVID—keep us from doing some things ourselves. I like to work in the garden but just can’t right now. I’m pretty sure I can redo the closet.
Kitchen upgrades were also popular with respondents, earning a satisfaction score of 9.8. Almost a third, 32%, said they would overhaul the kitchen to upgrade worn surfaces, finishes or materials. The second most important reason, 20%, was to add features and enjoyment.
The average kitchen remodel costs about $45,000, according to the remodeling association. The real estate agents estimated that $30,000 of this could be recovered when the home is sold, a recovery rate of 67%.
The estimated cost recovery for refinishing wooden floors was the highest at 147%. New wooden floor was at 118%. An insulation upgrade was 100%, as was new roofing and a new garage door.
Of course, the reasons why people remodel vary, according to the survey.
For some people, it started when they were stuck at home in 2020 and early 2021 due to the coronavirus, although 83% said they would have remodeled with or without the pandemic.
Homeowners spent about $420 billion on remodeling in 2020 alone, the survey found.
More than a third of respondents, 35%, said “the most important outcome from their remodel was improved functionality and livability,” the survey said, and 14% “reported beauty and aesthetics as a result of their remodel.”
So the desire for better function trumped the desire for better form.
“Our research revealed that homeowners tend to take on a remodeling project for a number of reasons,” said Jessica Lautz, vice president of demographics and behavioral insights at the National Association of Realtors.
In some cases, she said in a report on the research, “Homeowners were content to spruce up a room with a simple coat of paint, while in other cases families decided to take on the task of renovating an entire attic or basement to add additional living space to Their home.
“The pandemic has changed the way we use our homes, and many of these changes are here to stay. As a result, homeowners have had to reconfigure or remodel how they use their homes and maximize space.”
Another big reason for remodeling is the hope of an increase in home value by those who are considering selling, Lautz said, which is a big reason why a lot of the things that need to be done on our house haven’t been done.
We are not looking to sell, much to the dismay of the investor types who call and text every day and even mail to get us.
Nix. This has been home for over 20 years and almost will be until and unless we decide to move closer to the best granddaughter in the known universe and her mom and dad, down around Houston, but if that is the case, don’t Anytime. soon.
No, we fix the place, mainly because it’s tired and we’re tired of looking at it – and having to wait or rush with only one bathroom.
Senior business writer Richard Mize has covered housing, construction, commercial real estate and related topics for the newspaper and Oklahoman.com since 1999. Contact him at [email protected]