How much will a kitchen remodel add to the value of my home?
September 28, 2017
For homeowners looking to update and add value to their home, the kitchen remodel is a perennially popular choice. That’s because life happens in the kitchen. It’s where people naturally gather, create meals together, and break bread together. Today’s new homes are built with the kitchen as gathering place in mind, incorporating the kitchen and living space with one as an extension of the other. The modern-day kitchen is designed to bring the cook back to the party, and provide the space that the party never has to leave. So owners of existing homes want to capitalize on that trend by creating a similar space in their older houses
But, like any remodeling project, this always brings up the question of return on investment. Is this remodel going to increase the value of the
home, and by how much?
The answer depends on a number of variables, including the current real estate market, local property values, and the extent of the remodel. But no matter where you live, on a list of remodeling projects that bring a high return on investment, kitchens come in near the top. And while the cost to renovate the kitchen is higher than some other rooms in the house, the potential to recover it when the home is sold is high too.
In the mountain region, according to Remodeling Magazine, a minor kitchen remodel—which may include new cabinets or cabinet faces, knobs and pulls, countertops, appliances and sink—will return an average of 83% of its cost. That means for every $100 spent on the upgrade, a home’s value increases by $83. To look at it another way, a $12,000 investment in a new kitchen will add, on average, $10,000 to the value of your home. A major remodel, which involves tearing out walls, reconfiguring the plumbing, adding an island, etc.—will provide an average 65% return on investment.
Like any home improvement project, your first consideration when it comes to a kitchen remodel is how it will enhance your lifestyle. In other words, remodel your kitchen with you and your family in mind and create the space that is pleasing to you. But as you’re creating that perfect space, keep in mind how much of your investment you may recoup on resale.
A good resource for cost vs. value on a variety of home improvement projects can be found at the Remodeling website.