How Does Kitchen Renovation Affect Property Value?
The kitchen is an important part of any home. Kitchen appearance and functionality are particularly two important aspects that homeowners should focus on. This explains why the kitchen is important for most potential homebuyers. If your kitchen appearance isn’t pleasing, you should consider scheduling kitchen renovation for various reasons.An estimated 43% of homeowners remodel their kitchens because they can’t stand the old appearance, while 40% prefer updating their kitchen but cannot due to financial constraints. If you want to list your home for sale sooner, kitchen renovation should be among the many upgrades to consider.
Other home upgrades to conduct before selling your home include bathroom remodel, HVAC service, improving curb appeal, and landscaping, among others. Read on to understand how kitchen renovation affects your property value.
How Much Does a Kitchen Remodel Cost?
Like most home renovation projects, there is no universal budget or cost for kitchen remodeling. However, the cost of remodeling your kitchen can quickly increase if you dream of expensive installations, such as quartz countertops, custom cabinets, and a spacious kitchen island.
According to the 2018 cost vs. value report, the average remodeling cost for a 200 square foot kitchen with an island, wood cabinets, laminate counters, and standard faucets and sinks is slightly below $64,000. This price includes modern lighting, new flooring, and kitchen appliances.
However, you can spend more or a fraction of this to renovate your kitchen. For instance, upgrading your kitchen with granite countertops, tile backsplash, custom cabinets, and high-end appliances costs more than $126,000. Similarly, a simple renovation that involves replacing appliances and updating kitchen hardware and cabinets cost approximately $21,000.
According to the report, 70% of homeowners who conducted kitchen renovations spent between $5000 and $50,000. Only 1% spent more than $100,000. How much you will spend on kitchen renovation solely depends on your budget and expected outcome.
How Will Kitchen Renovation Affect Property Value?
If done correctly, kitchen renovations mostly increase your property value. Most potential homebuyers can pay more for thoughtful kitchen upgrades and high-end finishes. A recent survey found that 80% of property buyers consider the kitchen their top three important spaces when searching for new homes.
The survey also found that 69% of home buyers who bought homes lacking some kitchen features were willing to pay more if the home had new appliances. 55% of the respondents would have paid more for kitchens with granite countertops.
Renovating your kitchen makes your home attractive to homebuyers. Kitchen upgrades increase property value and help close the sale faster. This is important for homeowners who intend to sell their homes in the future. However, just because kitchen upgrades increase property value doesn’t mean you’ll recoup the remodeling costs in full.
Important Kitchen Updates to Increase Home Value
Knowing the most important renovation projects for your kitchen is important. Below are priority budget-friendly kitchen upgrades that increase your home value:
1. Cabinet Refacing
While you can spend a significant amount on an entirely new kitchen cabinet, cabinet refacing and refinishing is a budget-friendly upgrade that can increase property value. Instead of spending heavily to install new base cabinets, simply resurface and update the cabinet hardware and final finish. Pushing through new cabinet installations takes up 30% of your remodeling budget. However, refilling and refinishing kitchen cabinets can cost 10% and 15% of the total budget.
2. Invest in New Appliances
69% of homebuyers will likely spend more on a kitchen with new appliances. Installing new four-burner cookers, double ovens, and other kitchen appliances improves your kitchen’s functionality. Potential buyers also easily visualize their future kitchens. Fortunately, you can search for stores that sell these appliances at discounted prices to save on cost.
3. New Kitchen Sink and Faucet
The kitchen sink and faucet are important installations as they are visible to potential buyers. The sink and faucet also experience high traffic in the kitchen, making it important to upgrade these installations. The average cost (purchasing and labor) of installing a new kitchen sink and faucet is between $390 and $2,000.
4. Upgrade Kitchen Countertops
While installing quartz or granite kitchen countertops is tempting, they are very expensive. Consider affordable yet good-looking materials, such as granite remnants, tiles, and laminates. You can also use low-quality porcelain or stone slabs for a better appeal.
5. Modern Tile Backsplash
Modern tile backsplash with exciting color palettes and geometric designs complements your new cabinets and counters. While inexpensive, a tile backsplash has a very convincing visual weight that improves your kitchen’s functionality and appeal. Choosing a backsplash that aligns with cabinets and countertops is a receipt for better ROI.
Upgrading the existing wooden flooring can give you a very rare 100% ROI. Replacing the existing floor with wood floors has an average ROI of 91%. Hardwood floors are very attractive to potential buyers because of their durability, good appeal, and easy maintenance.
Most potential homebuyers are willing to spend more on homes with hardwood kitchen floors. However, you should choose the quality and cost of hardwood floors depending on your targeted real-estate market.
7. Light Fixtures
Like the backsplash, you shouldn’t underestimate the importance of lighting in a kitchen. Good lighting brings out the texture and color of various kitchen fixtures. Hanging ceiling lights, task lights, recessed lighting, and other modern installations can improve your kitchens’ appearance and ROI.
What Is the ROI for a Kitchen Remodel?
The ROI on kitchen upgrades highly depends on your budget and preferred kitchen renovation projects. However, the average ROI for major kitchen upgrades is 54%. This means homeowners can recoup $68,000 after spending $126,000 on their remodels. On the other hand, the national average ROI for minor renovations is 81%.
The ROI for kitchen upgrades is also affected by the location of your house. For instance, while minor upgrades can fetch 81% generally, those living in the pacific area can enjoy up to 93% ROI. Generally, there is no specific ROI value for kitchen remodeling. The only guarantee is an increase in property value.
Kitchen renovation is an excellent option for homeowners looking to improve their property value and functionality. However, you should evaluate the estimated ROI before undertaking the renovation project. Investing $60,000 on a renovation project that will recoup $40,000 isn’t prudent. If you want to sell your home, opt for a few budget-friendly renovations to boost your home and attract more buyers. Post Source