The kitchen is known as the heart of the home. When it comes to resale value, it's one of the best areas of your home to remodel. The one thing stopping homeowners from remodeling the kitchen is the cost. However, the cost you spend will help to increase the value of your home.
According to the Remodeling Magazine's 2018 Cost vs. Value Report, the average cost for a 200-square-foot kitchen to be remodeled with wood cabinets, laminate countertops, a standard sink and faucet, and an island is nearly $64k. That also includes new lighting, flooring, and appliances. While that may seem high, the price to remodel your kitchen can range anywhere from $10k to more than $120k, depending on the size and what you plan to do to the kitchen.
It's important to look at how much you will spend compared to how remodeling your kitchen will boost the value of your home. Here's a look at how much you may get in return when it's time to sell.
How Kitchen Remodeling Affects your Home Value
Before we get into the actual return on investment, there are a few things to consider. First, remodeling the kitchen will make your home more appealing, even if the appeal factor doesn't show up in the value. It could be the reason someone chooses to make an offer on your home compared to walking away without making an offer.
Second, the kitchen has been listed as one of the top three important spaces in a house by 80% of home buyer in a survey done by Realtor.com.
Finally, the materials you choose could have an even bigger impact on the value of your home from a kitchen remodel. More than half the home buyers surveyed stated they would have paid more for both new appliances and granite counter tops.
Actual ROI of Remodeling your Kitchen
Almost every kitchen remodel will boost the value of your home. Buyers are willing to pay more for high-end finishes and other upgrades. What you will actually recoup depends on how much you spend, however.
The report cited earlier from Remodeling Magazine shows the following:
Those spending $126k to remodel will recoup 54% or $68k when selling
Those spending $21k will recoup 81% or $17k when selling
This percentage also depends on where you live. It's not a one-size-fits-all situation when it comes to the ROI of a kitchen remodel.
Is it Worth it to Remodel the Kitchen?
Remodeling the kitchen shouldn't just be about increasing the value of your home. It should also be about improving your lifestyle. If you plan to sell your home in the next few months, it may not be a good idea to spend a large amount of cash on a kitchen remodel. However, you can still invest a few thousand dollars to make your home easier to sell and more attractive.
Those not planning to sell in the next few years may prefer a full kitchen remodel. Not only will you boost the value of your home, but you will also get to enjoy the upgrades until it's time to sell. Contact Powell Custom Homes today and see how we can help with your next remodeling project!