When planning a custom kitchen remodel, the first thing you may wonder is whether you are going to recoup the cost of your project. The good news is a kitchen remodel is very rewarding, as you are going to have the kitchen of your dreams. Imagine upgrading an older kitchen with sleek, modern amenities.
There is more to a kitchen remodel than just improving your quality of life. It also improves your resale value if you ever decide to put your home on the market. Most homeowners are looking for a kitchen with modern appliances, sparkling counters, and new cabinetry. Before you jump into your project, it is best to learn the value of your kitchen remodel.
How A Kitchen Remodel Affects Your Home Value
According to Dave Ramsey, about 80 percent of buyers placed a modern kitchen at the top of their wish list. They would pay more for features such as granite counters and newer appliances.
A custom kitchen remodel also adds value to your home because your house may stand out to your potential buyers. However, keep in mind that increased value does not always mean you are going to recoup the total cost of your remodel if you decide to sell your home.
Average ROI of A Kitchen Remodel
The amount you can usually recoup depends on which upgrades you choose and how much you spend on them. Once again, Dave Ramsey states the average ROI for a major remodel is about 54 percent, and the average ROI for a minor remodel is 81 percent. Of course, your ROI is based on your location as well. If you reside in the Pacific region, a minor remodel may have an ROI of 93 percent, while the ROI of a minor remodel in the Midwestern region is only 68 percent.
If you are looking for a straight answer on the ROI of your remodel, it is best to talk to a real estate agent, especially since your ROI is going to depend on several factors.
In the meantime, here are a few upgrades that can make a difference in the ROI of your remodel.
Value of Cabinets
If you are like other homeowners, your cabinets are at the top of your list of upgrades. Now, you do not have to tear them out and redo them completely if you do not have the funds. There are affordable upgrades that make your cabinets look more modern, such as having them stained, painted, or springing for new hardware. What seems like a minor change may increase your home value.
Remember, you need to upgrade worn out or outdated cabinets if you are planning to sell your home. You can invest in stock cabinets for anywhere from $60 to $200 dollars per linear foot. You can also opt for custom kitchen cabinets for high quality, one of a kind design and style.
Value of Fixtures
Your fixtures are another minor upgrade that can make a difference in your ROI. It is amazing how much a change such as updated lights or outlet plates can impact your kitchen. There are a few things you need to determine when upgrading your fixtures. This includes how every fixture in your home works, and how well they function. You also need to determine how well your current updates work with modern technology. Remember, there is rising popularity of smart fixtures among homeowners.
Value of Appliances
A quick way to upgrade your kitchen is to replace your outdated appliances. This is considered a major remodel, and there are several choices that can help increase your value without going over your budget. Start by upgrading to appliances that add both aesthetics and function to your kitchen. You can never go wrong with stainless steel appliances, as long as they work well. There are many people who are switching to an eco-friendly lifestyle as a way to save money, so energy-efficient appliances can add value to your home.
Value of Layout
Another major remodel is your kitchen layout, but it is worth the investment if your budget allows for it. One concept that has been gaining popularity is an open kitchen, as it creates more space for cooking and entertaining. Your buyers may appreciate the flow of an L-shape kitchen, which seems to be making a comeback in many homes. It is best to work with a professional to design a layout that is functional for you, but raises your value if you ever decide to resell your home.
Average Return on Investment
According to Zillow, here is the national average ROI for different kitchen remodels:
Minor Remodel: 81 percent
Midrange Major Remodel: 59 percent
Upscale Major Remodel: 53.5 percent
Remember, even if the ROI of your custom kitchen remodel is not where you are hoping, upgrading to a modern kitchen is worth it for you and your family.
Considering making an investment in your kitchen and home? Contact RM Kitchen for a free consultation, and start maximizing your ROI today!