It’s evident that homeowners trying to sell their house do renovations to increase its value. If you have lived in your home for the past 25 years, there is a good chance your kitchen is outdated. While there are various factors that can increase your home's resale value, your kitchen is one of the main considerations.
A kitchen is the heart of any home, so it's clear that potential homebuyers look for a modern, pleasurable space that they can envision themselves living and cooking in. Therefore, many homeowners opt to do a kitchen remodel to up the value of their homes. But, what is the return on investment of going through the process of a kitchen renovation? Most importantly, what are your options without breaking the bank?
Why Is Home Resale Value Important?
Whether you're house hunting or in the process of selling, there are a few factors that will influence the resale value of your home such as how much the house is worth today, comparison to other homes in the area, and a potential buyer’s needs.
But the one thing that both house hunters and homeowners often do not consider is the resale value. A home's resale value is the amount of money it is expected to sell for in the future. A home's current value may not be the same as the resale value. Various aspects can impact the increase (or decrease) of the house, including property improvements, age of the home, and condition.
As a homeowner, the only way you can increase your home's resale value is by making home improvements. By adding features and amenities that potential homebuyers look for will instantly increase the value of your home. Start with the focus of your home: your kitchen.
How To Increase Market Value Of Home With A Kitchen Remodel
Potential homebuyers are willing to pay more for premium finishes and modern upgrades in the kitchen because it stands out. If you have the budget to do a bit of remodeling before you sell your home, opt to give your kitchen a makeover. Even though it can be costly, in almost all cases, you can count on your kitchen remodel to boost your home's value which increases how quickly and the amount of money a house buyer will purchase your home.
80% of homebuyers view the kitchen as their top three most essential spaces, so investing in this space is worth the money. Additionally, homebuyers will pay more for certain features, including custom cabinetry.
A kitchen remodel is an investment in your money and time. Before you start knocking down walls, you'll need to explore options and consult with a contractor. Then, you can begin detailing finances. Here are a few budgeting tips:
- Spend On Things You Won't Need To Replace: Do not spend your money on things you'll need to replace in a few years. Rather, spend the bulk of your money on things like cabinetry, countertops, and appliances that will last for ten years or more.
- Don't Do Too Much: Remember, you are selling your house, so don't do too much. Talk to your real estate agent to find out what the majority of potential buyers are looking for in a kitchen.
- Unexpected Expenses: Set aside 15% of your budget for unforeseen expenses.
Save Money By Exploring Options
Without cutting too many corners, you can save money on your kitchen remodel. If your kitchen already has a durable structure, there are ways to refresh elements of your kitchen without a full construction. Here are a few ways to give your kitchen a makeover without breaking the bank:
- Paint Your Cabinets: If your cabinets are in excellent condition, but the color or finish is outdated, you can simply paint it with a timeless color such as white or light gray.
- Reface Your Cabinets: A step up from painting your cabinets is refacing it. If your cabinet boxes are still in great shape, but your cabinet doors and drawer fronts are outdated, you can reface it. Refacing your cabinets is simply replacing your cabinet doors and drawer fronts. It is half the cost of a full remodel.
Other possibilities include updating your hardware, changing out light fixtures, adding glass panels, changing your backsplash, upgrading appliances, renovating flooring, extending your cabinet boxes to your ceiling, or adding crown molding to your cabinets for a timeless touch.
If you are in need of a full kitchen remodel, CabinetNow can quote you and discuss cost-saving options!
What Will Your ROI On A Kitchen Remodel?
Now that you've decided to remodel your kitchen before selling your home, you're probably wondering what your return on investment is. Here is a breakdown of the average ROI for high-end to budget-conscious remodels:
- Premium Kitchen Remodel: The national average ROI for a major upscale kitchen remodel is around 54%. This means if you spend approximately $126,000, you'll profit about $68,000.
- Cost-Friendly Kitchen Remodel: The average cost of a small kitchen remodel is around 80%. If you spend approximately $21,000, you'll most likely profit about $17,000.
Kitchen Remodel Wrap-Up
There are endless possibilities for a kitchen remodel as there are various factors that can influence the amount of money you can profit. Your ROI depends largely on your home's location and other specifics of your local market. If you plan to do a kitchen remodel, we highly recommend talking to experts such as contractors, your real estate agent, and retailers like us to get you the best ROI. Contact us for a free estimate!