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Thursday, 21 November 2019
Agent Resource Center
Agent Resource Center

How Does a Kitchen Remodel Affect Home Value?

Written by Posted On Tuesday, 29 October 2019 01:29

Did you know that home improvements can increase your home's value? Here's how a kitchen model can help your home value rise.

Did you know that it takes an average of $20,000 for American property owners to renovate their kitchens? If you go for high-end appliances and you need to reroute pipes then you should expect to pay more for your remodeling project.

But at the end of the day, is a kitchen remodel project worth it? Do you get some of the money invested back when you sell the house? This is a good question and you should keep reading to find out a few interesting answers!

1. Both Small and Large Kitchen Remodel Projects Raise Home Value

You might be happy to find out that most kitchen renovation projects add to home value, even slightly. For example, replacing the kitchen countertops, getting kitchen cabinets cheap or adding a new flooring option will add to the total value of the kitchen. This minor renovation might cost around $20,000 and studies show that you can get back almost 80% of your initial investment.

This is great for you as a property owner because it means that most of your investment is protected. Not only that you will enjoy the new improvements for a couple of years, but when you decide to sell, you can get almost four-fifths of your initial budget back. But what if you decide to spend more on your kitchen renovation?

Again, studies show that if you decide to spend more than $100,000 remodeling your kitchen, you might get back only half of it. That's because remodeling projects reach a point of diminishing returns and investing more doesn't necessarily mean that you will get everything back when you decide to sell. Still, it's a great idea if you want to enjoy an ultra-modern kitchen equipped with state-of-the-art appliances and custom cabinetry.

2. Renovated Kitchens Attract More Buyers

Remodeling your kitchen doesn't only increase the value of your house, but it also makes your property more enticing. When selling a home, it's important to also complete the sale quickly, not only to make a lot of money out of it. In other words, would you take $50,000 today or $55,000 in a couple of months?

The reason why a renovated kitchen attracts more buyers is because nearly 80% of potential customers put the kitchen as one of the most important spaces in the house. If you renovate your kitchen and mention that when selling your property, you will receive more buying offers. As a result, you'll end up selling the house quicker and make profits faster.

3. Houses with Remodeled Kitchens Might Improve the Quality of Life

Having a remodeled kitchen is ideal for potential home buyers. That's because this room can impact so many aspects of their lives. For example, wives who cook really love a spacious and modern kitchen, so they will spend more time here every day. They might cook more often at home and this saves money in the long run.

Property owners who recently acquired houses with remodeled kitchens also mention that they now have a healthier lifestyle. It really pays off to have a brand new juicer and a fridge with multiple crispers for storing fruit and vegetables. Lastly, a plethora of clients say that they are willing to pay more for a kitchen with beautiful granite countertops, so keep that in mind when renovating your kitchen.

4. Timing Is Also Important when Making Kitchen Renovations

If you're looking to make more money out of your property, timing your kitchen renovations is essential to get the best return of investment. Let's say that your house will go on sale in a few months. A major kitchen remodel project might take weeks and cost you close to $50,000. Such expensive renovations might have a ROI of just over 50%, so it's probably not the best deal.

On the other hand, if you make minor renovations here and there in just one week and spend more time promoting your house, you can save a lot of money. Spending $5,000 on minor renovations will eventually attract more potential buyers and help close the deal quicker. Therefore, time your renovations properly and consult with your real estate agent often to get the most out of your property.

5. Nearly 70% of Home Buyers Look for New Appliances

There is something deliciously enticing about new appliances that attracts buyers almost instantly. You need to take this into account when making kitchen updates because it can help you sell the kitchen faster. At the same time, you can factor in the price of a brand new fridge and freezer in the total resale value of the house as well.

One study shows that nearly 70% of home buyers would go for a house with new kitchen appliances in a heartbeat. This makes sense since a lot of property buyers would like to have a microwave oven or a large refrigerator which hasn't been used before. When making kitchen renovations, focus on getting brand new appliances to get the best return of investment.

6. Making Kitchen Renovations Shows That You're A Caring Property Owner

You can probably tell a lot about the driver depending on how his car looks like. The same story is true for houses. Making renovations, especially kitchen updates, shows that you care about the space you live in and you want your house to be in great condition. This is something that most home buyers look for and appreciate in property owners when buying new houses.

Start Planning Your New Kitchen Remodeling Project Today!

As you can see, there are a lot of benefits to reap if you decide to engage in a kitchen remodel project in the near future. Not only that you can sell your house quicker, but you can also get most of your money back if you make smart renovations. The next step would be to plan out your kitchen remodeling plan today and get to the action!

For more useful pieces of advice on how to renovate your house before selling, make sure that you check out our other articles and learn more about selling your home!

Listing Additional Info

  • State: Ohio
  • Address: 1376 Davis Place
  • City: Maumee
  • Zipcode: 43537
  • SOLD: no
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knorr kendra

Knorr Kendra is a senior editor at the dailyupdates.com. A long-time columnist, her work has looked in the thebaynet, medium and many other publications. She would like to write related to health, real state, and other general topics.

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