How Much Does A Kitchen Remodel Increase The Value Of Your Home?
The old adage is true: Kitchens sell houses.
A kitchen remodel increases your chances of selling your home faster and for more money. Keeping your kitchen up to date also increases your home value.
People always ask if they should invest in a kitchen remodel before selling?
Zillow says, “In short, yes. But that’s if you’re doing a kitchen remodel that’s in line with what other homeowners in your area are doing and what buyers are looking for. While you probably won’t see a 100 percent return on money spent, you might shorten the length of time it takes to sell”.
So let’s look at the dollars and “sense”.
The average kitchen upgrade costs an estimated $35,000 and can go upwards of $75,000. In this range, you can expect to recover about 57% of the upgrade cost according to NAR’s Remodeling Impact Report. In addition, 23% of Realtors surveyed in the report said that such a project recently helped result in a closed sale.
So what kind of kitchen remodel should you consider to balance out the remodeling cost and the actual dollar amount recouped from the sale of your home? Below are some points to consider and remodeling guidelines to get the best kitchen remodel return on investment:
What are your goals with your remodel? Are you looking to sell for top dollar or looking to sell quickly (or maybe both)? For top dollar, the more generic the renovation, the more it will appeal to a greater number of people. No crazy colors, specialized backsplashes or outlandish appliances. A highly personalized kitchen you love may be beautiful, but a buyer won’t want to spend top dollar for a home they will want to remodel in their style anyway! If a quick sale is your main goal, the kitchen should be fresh and clean – a kitchen people can move right into.
Consider how long will you live in your home enjoying the remodel before selling. Is your time frame 1-3 years or 3-5 years? Your remodel may look different if you’re going to enjoy it yourself versus bringing it up to speed for sale.
Your kitchen remodel should reflect the price point of your home and neighborhood. Does it make sense to install professional-grade appliances in a $200,000 home? Are buyers in your area looking for brand-new kitchens, or would your home be the only one? The key is to predict what buyers want for your type of house – a turnkey home or a project. Young couples tend to want to remodel themselves. Is your home price range and location geared towards young couples or empty nesters?
How much do you have to invest in your kitchen remodel without dipping too much into your home equity? People pay more for things in the kitchen that aren’t replaced often, like cabinets, appliances, and natural stone countertops. A common kitchen remodel mistake is over-improving your kitchen, as you won’t be able to recover the costs of your updates—no matter how spectacular they are.
The 5 areas that give you the most bang for your buck in renovations:
Landscape and curb appeal –Will elaborate
Kitchen cabinets – decide whether your kitchen cabinets need re-facing, painting, or a complete overhaul to achieve that clean, fresh look without overspending or upgrading too much. Across every region in the report, a minor kitchen remodel offers the best return on investment of any kitchen remodel type. Leicht is a great brand as there are eight price groups to choose from depending on the level of remodel you deem best for your home, including thousands of colors and finishes to choose from!
Efficient appliances – Energy efficient, smart appliances – will elaborate
Paint – Nothing cleans up a tired home faster than new clean, fresh paint throughout the home. 2020 paint color trends are white and light grey. They not only make your home bright and light but also make your home look and feel larger!
Bathrooms – If your bathrooms have seen better days, a full bathroom remodel may be needed. But you may be able to salvage a tired bathroom easily as bathrooms can be quickly brought up to speed with new caulking around the tub, replacing an old vanity, upgrading lighting, and replacing shower heads and faucets.
Just Look At The Numbers
Remodeling magazine’s Cost vs. Value Report 2021 breaks down the average home sale return by region and scope of project. Consider remodeling your kitchen if it’s in line with other homeowners in your area. Kitchen upgrades appeal to home buyers which may shorten the length of time it takes to sell.
Here's how San Diego Stacks up against regional and national values: