Kitchen remodeling is a tried-and-true way to increase the value of your home. By detecting the most critical problems and taking the correct course of action you can make the most of your kitchen remodeling. Then selling your home with the kitchen remodel value added is a no-brainer. The big bonus is you will enjoy your home more than ever after a proper remodeling.
According to the Houzz study, a considerable number of people (43%) want to remodel their kitchens because they can’t bear being in a tired, old kitchen. In fact, merely improving the resale value motivates only a small number of people (8%). Therefore, things can get complicated when remodeling since the motivation will affect the transformation. If increasing the resale value is your primary motive then you should pay close attention to the costs and benefits of each upgrade.
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In this article, we will focus on the financial aspects of kitchen remodeling. If you are having problems with your existing kitchen and often find yourself wondering, “How much does a kitchen remodel increase home value?” then you are in the right place.
What is Kitchen Remodeling?
Kitchen remodeling is the procedure of making relatively significant changes in the kitchen to turn the space into a more pleasant living area. The changes aim to improve the function or aesthetic beauty, typically done by changing the kitchen layout through demolishing and rebuilding. In most kitchen remodels the cabinetry and appliances are replaced with new ones.
Remodeling a kitchen makes a big difference, especially if your kitchen is a hub of activity or the heart of the home. Though it requires a certain amount of money and a few days of inconvenience for those in the house, a decent kitchen remodel regularly results in smiling faces. This makes your kitchen more functional and beautiful while improving your return on investment (ROI).
How Much Does A Kitchen Remodel Cost?
As mentioned above, a well-thought-out kitchen design can greatly impact your quality of life, and in addition, boost the sale price of your home if you ever consider selling. However, it is very important that you decide on your primary reason for the remodeling project. To this end, getting a few quotes for a kitchen remodel could be very useful.
An average kitchen remodel cost in 2023 is $26,256 or roughly $150 per square foot according to HomeAdvisor and could go all the way up to $64,000. These figures only show the range of possible costs. It should be noted that each home and each project is unique. The cost can vary depending on many factors, such as the extent of the remodel, materials used, workmanship, last-minute changes…etc.
What Percentage of Your Home Value Should You Spend on A Kitchen?
According to HomeAdvisor, in order to get a solid return on investment (ROI), homeowners should follow the 5 to 15% rule. The rule simply states that a full kitchen remodeling should cost more than 5% of your home’s value to make an impact but less than 15% so as to not break the bank.
Spending too much on remodeling might get you in trouble. Statistics show that nearly 1/3 of homeowners have trouble staying within their budget while doing home improvements. Spending too little on remodeling is another issue. Maya Kachroo-Levine, the luxury and experiences editor at Travel + Leisure Digital, says that you shouldn’t risk the value of your home by spending too much or too little.
According to HomeAdvisor, in order to get a solid return on investment (ROI), homeowners should follow the 5 to 15% rule. The rule simply states that a full kitchen remodeling should cost more than 5% of your home’s value to make an impact but less than 15% so as to not break the bank.
Is A Kitchen Remodel Worth It?
Depending on the scope of the project and where you live, kitchen remodeling can make as much as 31.7% – 85.7% for an ROI as indicated by Remodeling’s 2023 Cost vs Value Report. Remodeling the kitchen is one of the highest ROI estimates of all other potential renovations such as HVAC conversion or garage door replacement. So, yes, in most cases, kitchen remodeling is worth every penny. Here are 5 reasons why a kitchen remodel is worth it:
1. Making The Kitchen Safer
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Cracked kitchen walls, dripping faucets, broken cabinets, and various other issues may endanger you and your family. You can eliminate such problems through kitchen remodeling.
2. Improving The Kitchen Layout
Regardless of how old your kitchen is if the layout is not practical, cooking and other kitchen tasks can turn into a real challenge for you. A new and practical layout will definitely make things easier for you. You can make potential buyers feel there is more space through a new layout plan.
3. Correcting Kitchen Functionality
Overextending appliances, inaccessible cabinets, poor air conditioning or ventilating, insufficient lighting…etc. are just a few issues out of a larger list of functionality problems in a poorly planned kitchen. You can tackle all these problems at once by having your kitchen remodeled.
4. Lowering Maintenance
Kitchens tend to require more maintenance as they get older. You can replace all the high-maintenance materials with new low-maintenance ones like quartz countertops, vinyl or tile flooring, hardwood cabinets…etc.
5. Making The Kitchen More Attractive
Your kitchen may not look as beautiful as it used to years ago. Everything changes, and so do our aesthetic tastes. Accentuating the understated beauty or completely overhauling your kitchen is possible through remodeling. You can try bold colors, natural wood, or anything you wish to bring out the innate charm of your kitchen.
Does Kitchen Remodel Add Value to Home?
It is widely known that a beautiful kitchen attracts potential buyers more than any other place in a home. So, the kitchen is the best place to spice things up to maximize the profits to be made from your home.
We can’t deny that kitchen remodeling cost can be exorbitant for some homeowners in certain locations. However, if you plan your remodeling wisely, it can turn into your best investment ever. Therefore, how you deal with budgeting is of critical importance.
As mentioned above, an average kitchen remodeling should cost somewhere between $10,000 and $50,000. As you can already tell, the price range is extremely varied. Then, how can you reach a sensible budget? Here are a few tips that can help you stay on track while making a budget:
Tip 1: Set Your Priorities
Try to spend more money on things you hardly ever change, e.g: cabinets, layout, or flooring. Those are usually considered good investments.
Tip 2: Avoid Over-Improving
Learn about the typical home prices and spend your money on remodeling accordingly. Even if your home becomes perfect after remodeling, you may not be able to recover the expenses due to the lower housing prices in your neighborhood.
Tip 3: Be Cautious
As you may already know, renovations never cost less than expected. Thus, setting aside 10-15% of the total budget is a good idea to cover last-minute expenses.
If you have a reasonable budget following the tips above and work with a good contractor, you can plan for a better kitchen space to get more people interested in your home. It’s not surprising that a kitchen renovation will add value to your home. Remember that potential buyers are willing to pay extra for high-end materials and smart upgrades.
What Is The Average ROI Of A Kitchen Remodel?
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The magazine Remodeling lists the national averages for various renovations you may consider for your home in its 2022 Cost and Value Report. Accordingly:
- A minor kitchen remodeling at midrange standards costs $28,279. The homeowner gets a resale value of $20,125 out of this remodeling, which makes a recoup of 71.2%.
- On the other hand, a major kitchen remodeling with similar standards should cost $80,809 with a resale value of $45,370. Then, the homeowner can recoup only 56.1% of the expense.
The figures are the national averages, you should consult a professional to get a better estimate of your project and potential ROI. Though it is hard to calculate the exact costs and sale values, you can still understand from the quotes of different options that numerous factors will affect the costs, resale values, and ROIs.
Factors that Influence Kitchen Remodel ROI
All homeowners tend to spend money on renovations that will bring them the best ROI. Yet, only some of them can make a good profit after a kitchen remodel. Apparently, there are some aspects they ignore or fail to hit the mark. Here is a short yet practical checklist that you can consider before planning your kitchen renovation.
- Consider the costs and potential ROI.
- Learn about the local real estate market.
- Consider what to replace and what to repair.
- Don’t overdo it.
- Check if there are DIY projects.
- Get professional help.
And finally, know that a proper kitchen remodeling project at the right time will make your life easier and add a remarkable amount of resale value to your home.
What Are The Important Kitchen Upgrades That Add Home Value?
When you put your property on the market you may notice that the kitchen is not only the focal point of your home but also makes a huge impact on the sale price. Moreover, certain renovations can make bigger impacts than others. Here are some of the most effective kitchen upgrades for higher resale value:
Adding A Kitchen Island
When embarking on a kitchen remodeling project you should definitely consider adding a beautiful and functional kitchen island. Kitchen islands add beauty and functionality at the same time. Buyers want more storage and seating areas, which a kitchen island offers. If you have enough space, you shouldn’t miss this opportunity.
Dealing With Cabinets
Cabinets usually take up the biggest part of the kitchen. Thus, good-looking and functional cabinets are always important for the greatest impact on potential buyers. Actually, you don’t necessarily have to replace kitchen cabinets. Why not consider refacing or painting the existing cabinets and stretching your budget.
Upgrading Appliances
Upgrading the appliances is another critical issue before selling a house. Yes, you are the one selling it, but your property is meant to be the buyer’s dream home. Anyone who is looking for a new house expects to do cooking, baking, or washing safely and comfortably in the kitchen. Therefore, upgrading to the latest technology and smart appliances will motivate buyers to buy your home over other houses.
Replacing Countertops
Some years ago, natural stones like granite and marble were all the rage in moderate to luxurious kitchens. For smaller budgets, laminate or concrete materials were widely used. But now, there are various countertop materials like quartz or quartzite that offer a wide range of options for different budgets, while requiring little to no maintenance. Replacing your old countertops with a new one will instantly add value to your home.
Adding A Multipurpose Area
Since the outbreak of the COVID-19 virus, more people have switched to working from home. On the other hand, most people don’t have a spare room to work efficiently all day long. Therefore, adding a workspace will add great functionality to a larger kitchen. You can count on making a good resale profit when adding a functional work corner in today’s modern homes.
These are the kitchen upgrades making the biggest impact on the sale price. However, there are many other kitchen remodeling ideas that can affect the price or motivate buyers to pay top dollar for your home. If you are interested in other inspiring ideas, you can find them in this additional article ”21 Top Kitchen Upgrades for a Higher Resale Value”.
Increase Home Resale Value With KBR!
KBR, a class A contractor, offers one of the best kitchen remodeling services in Northern Virginia, Maryland, and Washington, DC. Our company only employs highly qualified designers, managers, and in-house professionals to guarantee you are in good hands. KBR is a licensed and insured company with many awards and positive customer reviews. Each job is finished on time with satisfaction guaranteed. Regardless of the scope of your project, you can count on us to help you with anything regarding kitchen remodeling. If you want to significantly increase your home resale value without breaking the bank, you can contact KBR now.
Source: https://gardencourte.com
Categories: Kitchens
