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By Dennis R. Riccio
President, Central Arizona Association of REALTORS®
With average days on market exceeding 100 in many parts of Rim Country, condition and presentation increasingly influence how quickly a home sells and how offers come in. In this environment, many homeowners are asking the same question: Is it better to remodel before listing, or sell as is?
Homeowners across the country continue to make significant investments in their properties. According to the National Association of REALTORS® 2025 Remodeling Impact Report, Americans spent an estimated $603 billion in 2024 on remodeling their homes.
The report, authored by Lawrence Yun, Ph.D., Chief Economist and Senior Vice President, and Jessica Lautz, Dr. of Real Estate, Deputy Chief Economist and Vice President of Research, offers a detailed look at homeowner motivations, buyer expectations, cost recovery at resale, and the emotional impact of home improvement projects.
While the data is national in scope, its implications are highly relevant to homeowners and REALTORS® here in Gila County.
The Joy Factor: Remodeling and Emotional Return
One of the most compelling elements of the report is the “Joy Score,” a metric that measures homeowner satisfaction after completing a remodeling project. The typical Joy Score across projects was 8.2 out of 10.
Three projects received a perfect Joy Score of 10: an added primary bedroom suite, a kitchen upgrade, and new roofing.
Beyond satisfaction scores, the emotional impact is significant:
These findings reinforce what we observe locally. Improvements that enhance core living spaces or address structural integrity often deliver both emotional and practical value.
Cost Recovery: Which Projects Protect Value
The report also analyzed likely resale value added by various remodeling projects. Using cost estimates from the National Association of the Remodeling Industry and value estimates from REALTORS®, NAR calculated cost recovery percentages .
Top cost recovery projects include:
Top Remodeling Projects by Estimated Cost Recovery at Resale.
Source: NAR 2025 Remodeling Impact Report.
While not every project returns dollar-for-dollar value, maintenance-oriented and entry-level upgrades often preserve equity and improve buyer perception. For example, if a $6,000 exterior paint project improves buyer perception and prevents a $15,000 price reduction, the improvement may strengthen both negotiating position and time on market
Buyer Expectations and REALTOR® Recommendations
The report also highlights changing buyer behavior. Forty-six percent of buyers are now less willing to compromise on a home’s condition.
REALTORS® most frequently recommend sellers complete the following projects before listing:
Additionally, REALTORS® have seen increased demand in the last two years for:
These trends align with what many CAAR members are seeing throughout Payson, Pine, Star Valley, and surrounding communities. Buyers are carefully evaluating condition, especially in a market where many purchasers are retirees or second-home buyers seeking move-in-ready properties.
Why Homeowners Remodel
Understanding motivation also matters. According to the report, the primary reasons homeowners remodel include:
Interestingly, housing affordability was not a primary driver for most homeowners. Eighty-nine percent reported affordability was not the deciding factor in remodeling.
To fund remodeling projects:
This suggests many homeowners are leveraging built equity rather than relocating.
Professional vs. DIY Remodeling
The report also sheds light on how projects are completed:
Quality of execution matters, particularly when preparing a home for sale. Professionally completed, well-documented improvements typically inspire greater buyer confidence.
Remodel Before Listing or Sell As Is?
When advising sellers, one of the most important questions is whether to upgrade before listing or sell the home in its current condition.
There is no universal formula. The decision should be strategic.
Upgrading often makes sense when:
High-Impact, Lower-Risk Pre-Listing Improvements • Interior paint 🎨 • Exterior paint 🎨 • Roofing replacement 🏠 • Flooring refresh 🪵 • Entry improvements 🚪 |
Deferred maintenance can invite aggressive buyer discounts that exceed actual repair costs. Addressing obvious concerns may strengthen negotiating position and shorten days on market.
However, selling as is may be more appropriate when:
Luxury upgrades or highly customized design choices rarely return full value and may not reflect buyer preferences. Remodeling is not about maximizing design trends. It is about meeting market expectations within the competitive landscape.
Higher-Risk Improvements Before Listing • Full kitchen redesign 🛠 • Room additions ➕ • Highly customized finishes 🎭 • Luxury upgrades exceeding neighborhood standard |
“Remodeling is not about maximizing design trends. It is about meeting market expectations within the competitive landscape.”
A useful decision framework includes four key questions:
If the answer to most of these is yes, targeted upgrades may be justified.
Rim Country Market Considerations
National research provides the framework, but strategy must reflect local market realities. Current CAAR MLS data offers important context for how remodeling decisions intersect with pricing and market time in Rim Country.
CAAR Market Snapshot – Gila County Residential (Past 12 Months) Source: CAAR MLS Statistics Closed Sales: 863 Median Days on Market: 110 Median Sold-to-List Ratio: 96.97% Average Price Adjustment Prior to Sale: -$44,044 Market Time Impact: |
Market Time and Buyer Leverage
Over the past 12 months, 863 residential properties have closed in the CAAR MLS service area, with a median days on market of 110 days and an average of 137 days. Nearly 19 percent of listings have remained on the market longer than 121 days.
As market time increases, the average sold-to-original list price ratio declines, dropping from 97.20 percent for homes selling in the first 30 days to 86.55 percent for properties exceeding 121 days on market.
For members advising sellers, this underscores a key point: prolonged market exposure often correlates with deeper price adjustments. Condition, presentation, and perceived maintenance directly influence early buyer response.
Pricing and Negotiation Pressure
The median sold price across the CAAR footprint is $425,000, compared to a median original list price of $475,450. The median sold-to-list ratio stands at 96.97 percent, while the median sold-to-original list ratio is 94.27 percent.
On average, properties have experienced a price change of approximately $44,044 prior to sale. These figures reinforce the importance of strategic positioning. When buyers perceive deferred maintenance or outdated systems, price adjustments often follow. In this environment, modest pre-listing improvements that strengthen first impressions may help mitigate cumulative reductions.
Inventory and Competitive Positioning
Current MLS status data shows 342 active listings compared to 72 pending and 863 closed properties over the past year . With meaningful active inventory across Payson, Pine, Star Valley, and surrounding communities, buyers have options.
In markets where inventory provides choice, condition becomes a differentiator. Listings that present as well-maintained and competitively updated are more likely to secure early showings and stronger offers.
Aging Housing Stock and Structural Considerations
The median home size in recent sales is approximately 1,596 square feet, with an average of 1,768 square feet. Many of these homes were constructed decades ago and are entering prime remodeling age. Roofing systems, flooring, windows, and HVAC components often reflect original installations or prior-generation materials.
Given Rim Country’s seasonal weather exposure, snow load, and elevation-driven temperature variation, roofing and building envelope integrity carry added importance. Energy efficiency improvements may not always produce headline premiums, but they can strengthen buyer confidence and reduce objections during inspection and underwriting.
Key Takeaways for CAAR Members • Market time is materially affecting price outcomes |
A Balanced and Informed Approach
The 2025 Remodeling Impact Report confirms that remodeling decisions involve both emotional and financial considerations.
For homeowners planning to remain in their property, enjoyment and livability may drive decisions. For sellers, the objective shifts toward positioning, competitiveness, and value preservation.
Strategic, modest improvements often deliver stronger outcomes than large-scale renovations. The key is aligning investment with market expectations.
As REALTORS®, our value lies in translating remodeling decisions into market strategy. Recommendations should be grounded in neighborhood-specific analysis, including comparable sales, active competition, buyer expectations, and condition standards across Gila County.
In every market cycle, preparation and positioning matter. Remodeling decisions should be guided not by trend, but by strategy rooted in local data and competitive analysis.
Preparation + Positioning + Local Analysis = Strategic Advantage
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