How Kitchen Remodels Add to Home Value

Whether you’re a new homeowner or have been living in your home for years now, one thing you must do is to keep your home updated, especially in important rooms like the kitchen. After all, the kitchen is one of the most important and high-traffic areas in the house. It’s also a priority for homeowners to have a well-designed and functional kitchen to cook all their meals in.

Kitchen remodeling is important not only for you to have a fantastic space for cooking, but to help with your home value. That’s right, kitchen remodels add to home value immensely, as long as you do it right.

Wait, how? 

Read on as we share how kitchen remodels add to home value.

 

How Kitchen Remodels Add to Home Value

Think of your kitchen as the heart of your home. It’s what everyone looks at as they search for prospective homes to purchase. Sure, it may seem pricey to remodel your kitchen, but it actually pays off in the long run, in terms of functionality and home value. 

According to the National Association of Realtors Remodeling Impact Report in 2019, kitchen renovations are the third most popular type of home improvement. General kitchen upgrades are the second most popular.

Moreover, Better Homes and Gardens reports that homeowners can expect a return of around 52% on their investment after they remodeled their kitchen if they plan to sell their homes.

So, yes, kitchen remodels add to home value. However, it will depend on the type of remodeling done. You won’t necessarily see your home value skyrocket immediately, because based on your project, you may end up either having recouped expenses or not.

Here are the things you can do for kitchen remodels to add to home value:

 

The Cabinets

Cabinets are one of the priciest parts when remodeling the kitchen, equating to about 30% of your total expenses. 

To save on those expenses while getting good results, you can work with the existing kitchen cabinets. It can take around $300 to repaint and $200 for the hardware of your cabinets. This will give your cabinets a whole new look on a budget.

 

Countertops

The kitchen countertops are a focal point of your space. It can make or break your kitchen’s appearance! That’s why it’s important to design it for aesthetics and functionality. You can get a great ROI when updating the countertops.

 

Upgrading Appliances

It would be easier for homebuyers to envision making their own kitchen remodeling if you already put in upgraded appliances. Understandably, upgrading your appliances is a huge expense. But when you focus on upgrading appliances like the fridge, range, and double oven, the space becomes more functional. Moreover, it’s a quick upgrade.

You can save a bit by waiting for sales to get a great deal on quality appliances.

 

New Light Fixtures

Light fixtures are a crucial feature in any part of the house, including the kitchen. When you have a clean, modern light fixture, it creates a great impression on homebuyers and visitors. It will also set the tone for the look and feel of the entire kitchen.

 

Your Kitchen Sink

Lastly, a new kitchen sink is a wise upgrade that can give you more than your money’s worth. Homeowners will spend most of their time using the sink, and if it lacks in style and utility, it can leave a bad impression on buyers. It can take about $400 for a new sink and its installation costs, making it a worthy investment.

 

How Much Does a Kitchen Remodel Add to Home Value?

There is no exact percentage or price we can say for you. There are many different factors to consider, but we can discuss the average numbers based on surveys.

One of the major factors to consider is how much is spent on the kitchen remodeling project.

Moving.com states that a major upscale kitchen remodel can return about 53.9% of the money invested. Those with mid-range fixtures may have a 58.6% return on investment. For minor kitchen upgrades with mid-range fixtures, the ROI can be up to 77.6%.

It sounds counterintuitive that minor kitchen renovations offer a higher ROI compared to major ones. However, take into account that you will spend less money on minor renovations while still getting a great result. That’s why it makes sense to expect a higher ROI.

Another factor to consider is how long you plan to live in the house after the kitchen remodel. If you will be moving after remodeling, the percentage of RIO will be a big factor. But if you will still live at home for another few years, it’s best to focus on making appropriate upgrades for your family rather than focus on your home value and appeal to potential buyers.

It’s recommended to spend about 6-10% of your home value on kitchen remodeling. Any more than that and you may not have the best ROI. This means you must analyze the money you’ll spend compared to the potential home value added.

For instance, if your house is worth $500,000 and will spend around $100,000 (20% of the value) on major kitchen remodeling, the ROI will likely be 53.9%, which equated to an added $53,900 boost to the home value.

If you spend around $50,000 (10%) on a smaller renovation, the ROI can be up to 77.6%, which equates to a $38,800 increase.

 

Wrapping It Up

Planning to spice things up in your home? The kitchen is where to start, especially if you want to also increase your home value. You’ll find a ton of evidence that shows how kitchen remodels add to home value. Once you see the reasons why, it all makes sense.

So, if you want to do something to spruce up your kitchen, now is the time to start. For those still searching for a good contractor to help you with the entire process, contact us now! We can discuss our services and rates to achieve your dream kitchen.