How Will Your Home's Value Be Affected By a Kitchen Remodel?
If you want to spice things up with a show stopper in your home, the kitchen is the hottest place to do it! It's no surprise that the kitchen is one of the more important to potential home buyers. No matter if you are thinking of selling your home in the next 12 months, do it for yourself and enjoy the space.
The price tag of doing any major renovation can stop people from doing it. The fact of the matter is that kitchen remodels don't come cheap. So how do you know if it's the right investment for you and your home? Is it really worth it?
Let us walk you through the list of questions and help you design the smart way!
How Much Does a Kitchen Remodel Cost?
Renovating your kitchen can get very expensive very fast, especially if your dream kitchen has high end appliances, custom cabinets, and spacious islands.
Remodeling Magazine's 2018 Cost. v. Value Report says that the average cost to renovate a 200 s.f. kitchen with an island, wood cabinets, laminate counter tops, and a standard sink and faucet is just under $64,000. That price includes lighting, flooring, and new appliances.
It's possible to spend a lot more if you want to go with a gourmet kitchen with granite counter tops, custom cabinets, tile back splash, and built-in and commercial-grade appliances, which will cost close to $126,000.
If you are doing to remodeling to prepare your home for sale, a less expensive remodel could consist of replacing appliances, updating only cabinet fronts and hardware, choosing new laminate counters, and installing new flooring for just over $21,000.
The total cost really depends on your budget and that's totally up to you!
How to Budget for Renovations the Right Way?
Commit to spending the bulk of your money on things that you don't want to replace often, such as cabinetry and appliances. Make sure that you're not over-improving your kitchen, because you won't be able to recover the costs of your updates. Plan on the remodel costing you 10-15% more that you budgeted for to cover any unexpected issues that come up. In addition to the general cost associated with any remodel, be sure to apply for a permit with the city or have your contractor apply for one if you're doing any plumbing or electrical updates. If you're unsure of what's typical and what style to choose, let us help you make some choices and guide you through the process. We've handled many remodels for our clients over the years.
How to Save Money on Kitchen Remodeling?
Start with a plan and have a designer help you if at all possible. The last thing you want to do is install beautiful new counters and then realize that you have to remove them in order to install that farmhouse sink you've always wanted. Everything has to happen in order. Do your research and find the deals where you can. Instead of using custom cabinets, consider IKEA for example. They have several really great options for a fraction of the price and their styles are current. There isn't anything wrong with doing the project one step at a time and doing some of it yourself, Please be sure you know what you're doing, because it can end up costing you more to fix things that were done incorrectly.
Consider All of Your Flooring Options. Vinyl flooring has come a long way and is less expensive than installing real hardwood or slate floors. You can find styles that mimic high-end finishes for a modern look. On trend right now, are the wide plant nature wood flooring. They don't show the dust and crumbs like a darker wood or vinyl flooring wood and they are easy to keep clean and maintain.
Make Sure Your Appliances Are Consistent. It's typical in the Los Angeles area to sale a home with all the appliances included. If you have a white dishwasher and all the other appliances are stainless steel, then consider buying a stainless steel dishwasher to match. If you know there is an issue with the oven door that doesn't close properly, then either have it serviced or replace it. These things will come up during the home inspection and buyers will ask for credits or for you to replace things that aren't working properly. Consider buying your appliances online to save sales tax or shopping deals during key sale periods. Every little bit helps!
Don't Underestimate the Power of Back Splash. A new tile back splash can really bring the kitchen color palette and design together, and it usually only costs a few hundred dollars in materials. Paying for a tile expert to install is reasonable as well. You could do it yourself, but if you want it straight, hire the expert! Lowe's and Home Depot both have clearance end caps that you put bulk tile out and if you can find enough of it to cover the space you need it can really save you money. Also, there are a couple of great discount tile places we can recommend that have a vast array of options.
How Will a Kitchen Remodel Affect Your Home Value?
In most cases, you can count on your updated kitchen to boost the value of your home. Buyers are willing to pay more for high-end finishes and thoughtful upgrades. Everyone is so busy these days, that the kitchen remodel is the most daunting task buyers dread, due to the time they will be without a kitchen. According to a recent survey, 80% of home buyers placed the kitchen in their list of top three most important spaces. An updated kitchen can help your house stand out for prospective buyers, which will help you sell faster and for more money. Remember just because your home value goes up, it doesn't necessarily mean that you will recoup the total cost of the remodel when you sell.
What Is the Average ROI of a Kitchen Remodel?
The national average ROI for a major upscale kitchen remodel is almost 54%. That means you recoup about $68,000 after spending around $126,000. For a smaller renovation project that cost you around $21,000, the average recouped is $17,000. That's an ROI of 81%.
Your ROI can be influenced by where you live. For example, while the national average for a minor remodel is 81%, the percentage increases to 93% in you live in the Pacific area of the country.
The ROI also depends on the specifics of your local market and neighborhood, which we can help you assess of your real estate experts. We will provide sound advice about which kitchen renovations offer the best returns for you and your situation.
Is it Worth It?
The answer to this question ultimately depend of you and your goals. If you are planning to sell your house in the next two to three months, it my not be wise to put $60,000 into a new kitchen. It might make more sense to do a few minor renovations that may only cost you $5,000 - $8,000 and you can recoup that when it sells.
If you are looking to do the remodel for you and your family to enjoy and don't plan on selling anytime soon, studies have shown that by doing so you lead a healthier lifestyle. You end up cooking more, because you want to spend more time in your beautiful new kitchen. Family time also increases, which is a good thing in this busy world we all live in. You can't really put a price on those things!
If you really don't know where to begin give us a call and we can talk you through what needs to be done. We have a team of people that can do all the work for you at reasonable prices and they've done work for us and many of our clients over the years. Finding the right people to do the work is always the most challenging, so let us make your life easier!