Is Remodeling a Kitchen a Good Investment?
If you’ve been thinking about selling your home, you’re probably wondering if it’s a good idea to invest in renovating the kitchen first. Without a doubt, remodeling the kitchen is quite rewarding considering that the visual appearance and quality of life in the home will improve.
But whether you recoup the costs of renovations or not depends on what the buyer is willing to pay. However, Remodeling Magazine’s latest cost vs. value report indicates that small kitchen renovations can earn you an ROI (Return on Investment) of over 83%, meaning that for every $100 spent on kitchen upgrades, your home’s value rises by $83 on average.
Major vs. minor kitchen renovations
Take note that major kitchen renovations don’t offer the same ROI as minor ones. In fact, major updates like replacing all appliances, countertops, and the sink increase a home’s value, but to a figure that may not surpass the total amount put into the renovation. This is especially true when other houses in your area lack a similarly updated kitchen.
Studies show that a major kitchen investment costs about $38769 on average, with a $31344 resale value. This translates to an 80% ROI. While it’s not bad, it isn’t as good as the ROI of small kitchen renovations.
Small renovations cost approximately $14,773 with a $13039 resale value. That’s 87% ROI. As such, it’s best to go for small kitchen upgrades like:
Any potential buyer who steps into your kitchen will first notice the cabinets so they’re one of the most important renovations to make. However, this doesn’t mean that you tear all your cabinets out and start afresh. Having them stained or painted is a simple yet effective way to update them without exhausting your budget.
Small changes such as upgrading the switches, outlet plates, and even the lights improve your home’s appearance and make it look more put together. Even so, it’s important to go for only those fixtures that make daily kitchen life more manageable. For instance, consider installing non-touch fixtures as they have become quite popular.
Know your neighborhood
Ensure you talk to a real estate expert before settling on a kitchen update design. This will help you realize how and to what extent a kitchen renovation will affect your home. It’s best to upgrade your kitchen to the community standards but not to a level that will price it out of range.