Whether you’re planning to add onto your kitchen or a complete overhaul with a new kitchen design & layout, kitchen remodels are an investment in your home. So how do you know if a kitchen remodel addition will affect your homes value in a way that will make it worth it?
How Will a Kitchen Remodel Addition Affect Your Home Value?
According to a recent Houzz & Home study, homebuyers placed the kitchen in their list of top three most important spaces. That same study shows that buyers are willing to pay more for high-end finishes, appliance and countertop upgrades.
What Is the Average ROI of a Kitchen Remodel?
How much you can typically recoup on a kitchen remodel addition has a lot to do with how much you spend and the size of the remodel. For example, the national average ROI for a major upscale kitchen remodel is almost 54%. That means you recoup about $68,000 after spending around $126,000.
What about a smaller renovation project? The average cost of a minor kitchen remodel is about $21,000, and the average amount recouped is $17,000. That’s an ROI of 81%.
There’s no one-size-fits-all ROI for kitchen remodeling. Your ROI depends on the specifics of your local market, which is why we always recommend Hanley Wood’s Cost vs. Value report for solid numbers on kitchen renovations, costs and ROI.
How Much Does a Kitchen Remodel Cost?
The 2018 Cost vs. Value Report says the average cost to renovate a 200-square-foot kitchen with wood cabinets, an island, low-grade countertops and a standard sink and faucet is just under $64,000. That price also includes new low-grade appliances, lighting and flooring.
But it’s also possible to spend much more or much less than that. For example, a gourmet kitchen with high-end countertops, custom cabinets, tile backsplash and commercial-grade appliances could cost close to $126,000.
A simpler remodel that consists of making a home “move-in” ready consists of replacing appliances, updating cabinet fronts and hardware, choosing new laminate counters, and installing budget friendly flooring options costs an average of just over $21,000.
How to Budget for Renovations
You want a solid remodeling budget, detailing what materials you want and how much you want to spend. That will help you stay on track throughout the remodel.
Three Budgeting Tips:
- Tip #1: Commit to spending the bulk of your money on things you don’t want to replace often—such as appliances and cabinetry.
- Tip #2: Make sure you’re not over-improving your kitchen. You won’t be able to recover the costs of your updates—no matter how nice they are—if they make your home the most expensive on the block.
- Tip #3: Set aside 10–15% of your budget for unexpected expenses. Renovations never cost less than expected.
An updated kitchen can help your house stand out for prospective buyers, which can help you sell faster and for more money. If you’re ready to take your project to the next step, contact us for a free consultation.