Kitchen Remodeling | Getting the Best Return on Your Remodel
Kitchen Remodeling | Remodeling your home is one of the best ways to increase its value, while simultaneously improving your own quality of life. And the kitchen is a great place to start— for future prospective buyers, a great kitchen can make or break the sale. A well-planned kitchen remodel should earn back about 70 percent of your investment once you decide to sell your home.
Planning Your Kitchen Remodel for Resale
How much your remodel will earn you in the future will depend on a lot of different factors. The amount you spend and the appliances you choose will both affect your future sale price. Potential remodelers must ask themselves: “Am I building my dream kitchen, or am I optimizing the remodel for maximum return?” The answer to this question will have the greatest impact on your return. There’s nothing wrong with building your dream kitchen, but bear in mind that future buyers have their own “dream kitchen” in their heads.
So if you are designing your kitchen primarily to increase the value of your home, you will want to choose appliances and other assets with a greater mass appeal. For example, spending a large portion of your remodeling budget on genuine, vintage knobs for kitchen drawers and cabinets may be your idea of an upgrade, but there’s no guarantee future buyers will place any value on the same feature.
Beyond these kinds of specific changes, there are certain renovations with a much higher return on investment (ROI) than others. Replacing every cabinet in your kitchen, for example, will be costly—yet unlikely to increase the value of your home in any significant way.
Tips for Choosing Renovations with Highest ROI
- Budget According to Your Home Value. One of the biggest mistakes homeowners can make when remodeling is not taking into account the value of their home. Remodels will only return up to a certain point—your amazing kitchen will not change the price of homes in your location, the number of bedrooms or bathrooms, or other factors that influence the sales price. For fair returns, you should spend somewhere between 6 to 10 percent of the total home value.
- Don’t Undercut the Architecture. Another big mistake homeowners make is to try to take on a project that doesn’t match the “feel” of their home. If you’ve ever attended an open house inside a rustic-style home and you were greeted by a modern, minimalist kitchen, you know exactly what this means. The exterior of your home is what engages buyers in the first place—don’t compromise your sale by surprising them with a completely different theme in the kitchen.
- Talk to a Real Estate Professional. If you’d like to know what buyers are looking for in your neighborhood, go to the experts. A real estate agent can inform you exactly what buyers want—and what turns them away.
- Keep it Simple. If you’re building for maximum ROI, now is not the time to go out on a limb with color patterns, appliances, floors, and backsplashes. Choose neutral color schemes and subdued hues. Surfaces and fixtures should blend easily with many different styles.
- Open up Your Space. Buyers are very fond of open spaces and floor plans, and the kitchen is no exception. If you have the budget and ability, knocking down walls may yield a high ROI.
- Add Some Wow Factor. Again, consulting with a real estate professional can illuminate which kitchen amenities have helped sales in your area in the past. Certain upgrades have the potential to surpass the value of your initial investment if they can charm the buyer. For example, granite countertops are a universally loved feature. Lighting upgrades can also make your kitchen features “pop” when carefully planned. – Cole Builders
Interested in kitchen remodeling? Contact Medina Exteriors today, (330)591-4040Share