Your Biggest Gustomers: Recent Home Buyers

Proving for the first time what conventional wisdom has long held, a new study finds that a majority of homeowners make improvements to their homes within the first year of purchase. Many consumers also make improvements to their previous homes to prepare them for sale.

Kitchens, bathrooms and living rooms are the most likely interior spaces to be improved in both newlybuilt and existing homes. Owners of newly-built homes are also likely to do landscaping projects.

The Home Improvement Research Institute study found that 52Vo of recent home buyers completed one or more home improvements within the first year of purchase, and half were planning at least one more project within the next year. The most frequently purchased products include paints and sundries, lumber and building materials. and floor coverings.

Overall, recent home buyers spent more than $4,900 during the first year. Buyers of older homes spent an average of $3,600, while those who bought new homes spent an average of $7.000. Owners of older homes most frequently cited a desire or need to replace worn-out or old materials, while owners of new construction were most often seeking to beautify the house. Purchasers of both types of homes reported that they did improvements to support new features and change the decor.

About 40Vo of respondents who sold a home prior to this purchase made improvements to their previous home to get it ready to sell. The most common improvements prior to sale are interior painting, exterior structural improvements, new flooring, interior structural improvements and replacing cabinetry and countertops. The most frequently improved rooms are kitchens, bathrooms, and living rooms.

"The vast majority of homeowners said they believed that the money spent on improvements to their previous home was compensated by the increased value," said HIRI's Fred Miller, noting on average $4,800 was spent to improve homes before sale.

Purchasers of existing homes are more likely to paint interior spaces. replace or repair flooring, do electrical wiring, and install new lights and