You can’t bear your old kitchen any longer, but is it worth the time and money to remodel it? Perhaps you’re considering if moving is a better option to be more cost efficient. This article will help you determine when to remodel your kitchen, and how much to spend whether you’re considering to either stay or sell.
Return on Investment of a Kitchen Remodel
Many homeowners want to see what their return on investment would be before investing in a kitchen remodel. Kitchen remodels can get extremely pricey depending on the amount of remodeling done. This can, at times, deter people away from focusing on only the kitchen, and moving houses all together. The response will vary depending on a variety of factors, including the home’s location and where, or whether, it will be listed for sale.
Having a 100 percent return on investment is impossible for most home remodeling schemes. The easiest way to value any home renovation project is to think about how it will serve you when you live there, and how potential customers will respond to the changes.
A mid-range kitchen remodel recouped 57.4 percent of the job cost, according to Remodeling’s 2021 Cost vs. Value report. A high-end kitchen remodel recouped 53.9 percent of the costs. Kitchen upgrades, in general, have the greatest interest to consumers of all home designs.
Is It Time to Remodel My Kitchen?
If you’re satisfied with your current kitchen and don’t intend to sell your home anytime soon, you might be wondering if it’s even worth it to invest in a kitchen remodel. According to NARI, the National Association of the Remodeling Industry, 74 percent of homeowners who remodel their kitchen want to spend more time at home, and 65 percent appreciate their home more. The average homeowner spends hundreds of hours a year in their kitchen. Remodeling allows them to make the most of that period.
If you’re considering whether to renovate or relocate, remodeling an existing kitchen will be more cost-efficient and will give you a fresh look at your current home. NARI researched with REALTORS® to determine which home improvements resulted in the highest Joy Score for homeowners. “The Joy Score was calculated by combining the share who were happy and those who were satisfied when seeing their completed project and dividing the share by 10 to create a ranking between 1 and 10. Higher Joy Scores indicate greater joy from the project.” based on NARI’s Remodeling Impact Report.
Should Sellers Upgrade Their Kitchen?
The most appealing renovation to consumers, according to REALTORS®, is a kitchen remodel. Fifty-four percent of REALTORS® recommended buyers to redesign their kitchen before placing their home on the market, and twenty-three percent said a new kitchen aided a recent home sale.
However, since the return on investment is not as big, most REALTORS® do not prescribe a big kitchen renovation right before the sale. In most cases, if a homeowner intends to sell their house prematurely, they can spend less money on repairs.
Soon-to-be-sellers can “spend on functional features like pantry drawers, soft close cabinet drawers and doors, waste-recycling cabinetry,” according to HGTV. However, don’t over-personalize the space.
When remodeling a kitchen for resale, remember what features consumers would want to see and choose a universally appealing theme. Over-customization can negatively affect rather than improve a home’s resale value.
What Do Prospective Homebuyers Like to See?
According to Kiplinger, the following features are must-haves for homebuyers of all ages. Keeping these features in mind when you remodel your kitchen will mean that your home stands out when it comes to trading.
- Laundry Room
- Energy Efficiencies (Appliances and Windows)
- Ceiling Fan
- Garage Storage Space
- Exterior Lighting
- Walk-In Pantry
- Walk-In-Closet (Master Bedroom)
- Eat-In Kitchen
- Dining Room
Although these features are appealing to homebuyers of all ages, recognizing the desires and expectations of millennial consumers can aid in maximizing potential resale value. Millennials are now the largest single age demographic of homebuyers, accounting for 34% of all homebuyers. Sixty-six percent of all millennials want to purchase a home over the next three to five years. This demographic seeks move-in ready homes with spacious floor plans, remodeled kitchens and bathrooms and newer appliances.
Home Value vs. Kitchen Remodeling Cost
It is probably wise that you spend between 5% and 15% of the cost of your home on a kitchen remodel. Similarly sized kitchens in different cities, on the other hand, can have the same remodeling costs but a different return on investment. It is critical to obtain estimates for goods and services in your region to establish a fair remodeling budget for your home.
It is particularly vital for those planning to sell soon to consult with a realtor and assess the housing market in their area. Touring open houses in your area will allow you to see what other kitchens in your area look like, which can help you decide which upgrades to make on your own. A realtor will also educate you about how long homes last on the market and whether a remodeled kitchen can make your home sell faster. Contact a remodeling company to get direction if choosing to remodel your kitchen.
If homeowners want to remain in their home for several years or sell it quickly, remodeled kitchens are an investment that pays off in terms of both satisfaction and resale value.