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What is the Return on a Kitchen Remodel?

What is the Return on a Kitchen Remodel?

It is no secret that homeowners trying to sell their house do renovations to increase its value. Various factors can increase your home's resale value, with one of them being your kitchen's state. A kitchen is the heart of any home, so it's obvious that potential homebuyers look for a modern, welcoming space that they can see 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 ROI on a kitchen remodel? Here’s a breakdown of what increases your home’s resale value.

What Is Home Resale Value?

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:

  • The Worth Of A House Now: With a home evaluator, you can easily find out the worth of a house.
  • Comparison To Other Homes In The Neighbourhood: One of the easiest ways to find out what a home's value is to look at what similar homes in the area are going for.
  • A Potential Buyer's Needs: From the number of bedrooms to having a pool, a homebuyer looks for specifics when house hunting.

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 the following:

  • Property Improvements: Remodelling a kitchen or bathroom, landscaping a garden, or adding a home office can increase the resale value.
  • Age Of The Home: The age of a house could mean that it has outdated plumbing, cabinetry, or electrical wiring. These factors could decrease the resale value of a home. On the flip side, older homes have more character, larger rooms, and are made to last, which will increase the resale value.
  • Condition Of The Home: Like most things in life, appearance is everything, even for a house. If a home is liveable and in good condition, the resale value will increase, compared to a home that needs a lot of work done to it.

As a homeowner, the only way you can increase your home's resale value is by making improvements. By adding features and amenities that potential homebuyers look for will instantly increase the value of your home. But not all changes may have universal appeal, so consult your real estate agent for advice.

Does A Kitchen Remodel Increase Resale Value?

The simple answer is yes, but a kitchen remodel needs to be done correctly to get a return on your investment. 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 expensive, in most cases, you can count on your kitchen remodel to boost your home's value. Potential homebuyers are willing to pay more for high-end finishes and thoughtful upgrades.

An upgraded kitchen can help your house truly stand out amongst potential homebuyers. This means that your home will potentially sell faster and for more money. 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 specialty cabinetry, granite countertops, and high-end appliances.


From replacing your cabinets to adding new lighting, a kitchen remodel is not easy and can come with a hefty price tag. Before you start knocking down walls, you'll need a solid plan that details what each contractor should do. Additionally, it would help if you also outlined how much everything will cost. Take your time to nail down every detail of your budget to ensure that you cover all areas. To help you get the most for your money, 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. Renovations never cost what you've budgeted for, so by setting aside some additional funds, you'll deal with unexpected issues with ease.

Can You Save Money On A Kitchen Remodel?

Without cutting too many corners, you can save money on your kitchen remodel. If your kitchen already has excellent bones, there are ways to refresh elements of your kitchen without replacing them. 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. This easy DIY project will save you thousands of dollars and can refresh the look or feel of your kitchen. Go with a simple white or light grey to add a lightness and comfort to you space.
  • 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 means that you change the cabinet doors and drawer fronts to give it a more modern look.
  • Get A Tiled Backsplash: Only costing a few hundred dollars, a new tile backsplash can pull together a kitchen palette. A backsplash allows you to experiment with different tile materials, eye-catching patterns, and beautiful colors. If you plan on selling your home, go with more neutral tones and simple designs.
  • Get Creative With Your Flooring: Vinyl flooring has come a long way and proven to be the option for most modern homeowners. You can find styles that mimic high-end finishes but cost a fraction of the price. Opt for imitation real wood or slate vinyl flooring. Alternatively, you could paint your kitchen floor in a neutral color.

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 (ROI) is. How much you recoup on a kitchen remodel usually depends on how much you've spent and what kind of renovations you choose to do. Here is a breakdown of the average ROI for high-end to budget-conscious remodels:

  • High-End 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 recoup about $68,000.
  • Budget-Conscious Kitchen Remodel: The average cost of a minor kitchen remodel is around 80%. If you spend approximately $21,000, you'll most likely recoup about $17,000.

Kitchen Remodel Wrap-up

There's no one-size-fits-all return for a kitchen remodel as there are various factors that can influence the amount of money your recoup. Your ROI depends 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 an expert real estate agent. A real estate agent should give you the best advice about your kitchen remodel and what will get you the best ROI.