Committing to a kitchen remodel is a large undertaking, and, unfortunately, there isn’t really a way around that. However, a carefully planned kitchen remodel can actually add value to your home. This is because the kitchen is one of the central spaces for everyday life, and so many homebuyers put a lot of weight on the kitchen. If you are planning to sell your home, this can be a great benefit of a kitchen renovation.
According to HGTV, depending on how much you spend and the upgrades you select, your kitchen remodel could see as much as a 70% return on investment (or ROI). However, this doesn’t mean that you should spend as much as possible on your remodel, as you typically see the best return when you spend around 5-10% of your home value.
If you are just starting to plan your remodeling project, you may be wondering how to allocate your budget to get the best return. While it can be tempting to go for flashy, high-end appliances, but putting a brand new stove in a kitchen without upgrading the surrounding will create an unfinished look. In this article, we are going to take a look at strategies for planning the most effective kitchen remodel.
Before we get started, you should know that no matter how much you spend on your kitchen, a buyer mostly likely won’t be impressed if there is a basement leak, roof damage, or other structural issues. Before committing time and resources to luxury upgrades, ensure that your house doesn’t have construction issues, so that you can get the most out of your remodeling efforts.
roi for a kitchen remodel
Now that you have ensured your that house is structurally sound, you can get started planning your kitchen remodel. If you are anything like me, my first question when starting a new home project is “Can I really afford this?” The total amount you spend on your kitchen remodel will vary depending on what you want, whether or not you plan to sell, and, if you are selling, the value of homes in your area.
To get a rough estimate of the costs, it can be helpful to look at national averages and trends in the current housing market. Here is a breakdown of the national averages reported by Zillow:
- Smaller kitchen remodeling projects should focus on amplifying the existing layout, if possible, rather than knocking down walls or attempting new construction. New paint, upgrading the flooring, replacing your cabinets, and small convenience items will go a long way for some buyers.
- The budget for this size renovation leaves room for you to make upgrades that help attract buyers and make your space more enjoyable. In a medium kitchen remodel, you might be replacing your cabinets and countertops, installing a tile backsplash, or moving to appliances and features that are focused on energy efficiency. You may also be working with an interior designer about changing your kitchen layout to be more functional during a project like this.
- The Dream Kitchen: You are likely only taking on a Dream Kitchen project if you are planning to stay in the home for a while before you sell. The Dream Kitchen remodel sees the lowest ROI. On average, homeowners who spend around $125k only see about a 50% return.
- If you have the budget for this project, it is important to remember that not all buyers value upgrades in the same way. For example, a $10,000 oven would not be as attractive to someone who typically eats out. So, if you are interested in a dream kitchen, then why not make it your dream? In a project like this, you may be looking into custom kitchen cabinets, high-end countertop materials like marble, or maybe even ripping it all out and starting from scratch with a new kitchen design!
external factors
While thinking about all the upgrades and the end result can get us carried away, it is important to remember the external factors that influence your ROI. These range from your neighborhood, what homes around you sell for, and the age of your home. It could be helpful to speak with a local real estate agent before you get started so that you have an idea if this remodel will be worth the time and money.
The Other “External” Factor
Don’t forget to spend some time and effort on the outside of your house. You could have the most beautiful kitchen, but if the house has a low curb appeal, you may not even show it off. This is why updating the siding on a house has one of the biggest ROIs.
small kitchen projects to add value
Even if you don’t plan to sell your home for many years, there are small projects that you can do to gradually raise your home’s value. Some of these projects are DIY-friendly, while others may require professional help and permits.
- Fresh Coat of Paint: Surprising, a fresh coat of paint on your cabinets can make a huge difference. We recommend neutral tones and bright whites. Cabinets that are painted white help to reflect both artificial and natural light throughout the space.
- Kitchen Island: This project may require hiring professionals, but a kitchen island is a great upgrade for the functionality and aesthetic of your kitchen. Many newer kitchen islands offer integrated storage for smaller appliances like a microwave. If you have a small kitchen, rolling bar carts can effectively be repurposed into an island.
- Upgraded Lighting: Not being able to see what you are doing in the kitchen is not only frustrating, it can also be dangerous. Adding recessed lighting and other lighting options will make your kitchen brighter, which actually helps to make it feel larger.
- Stainless Steel Sink: Stainless Steel can be a great investment in your kitchen, as it is a material known for its strength and durability. For a sink, this is good news, because your sink will be able to handle anything you throw at, or into, it.
- Modern Convenience: Buyers shopping for a new home will notice time-saving modern conveniences. Whether it is outlets with USB ports or a pot filler faucet, these items help save time and reduce friction using the kitchen.
- Creative Backsplash: A great backsplash can be a stylistic statement piece in the kitchen. Homeowners are moving away from the standard subway tiles favoring more creative choices in both shape and color.
- Upgrade Your Fixtures: Many newer faucets have desirable features such as touchless controls, magnetic sprayer heads, and even voice commands.
- Coordinate Your Appliances: It might seem ridiculous to swap out a perfectly fine oven for a new one just because it does not match. However, it may be worth it, as having matching or coordinating appliances creates a sense of unity in your space that potential buyers might find attractive.
wrapping up your kitchen remodel
If you are feeling overwhelmed at how large the project of remodeling your kitchen is, take a deep breath. A lot of these decisions will be made for you by your budget and the advice from your realtor. It is important to remember to be patient and reasonable with yourself. Selling a home and remodeling a kitchen can be huge undertakings.
At CabinetHub, we would love to help take some of the remodeling stress off your shoulders. We offer virtual one-on-one consultations with our cabinetry designers for free. This way, you can make the most of your valuable time. In addition, your cabinets will be shipped directly to your door fully finished. This means you don’t have to worry about painting or staining them. Plus, if you are really pressed for time, we can assemble the cabinets before they ship.
If you are ready to get started, you can give us a call at 1-855-6609, an email at info@cabinethub.com, or fill out our design request form. Our seasoned designers are ready to work hard for you. 9