Will a kitchen or bath remodel increase the value and appeal of your home?
I cannot tell you the number of clients I meet with who say they are remodeling their kitchen to put the house on the market. Kitchens sell homes. Carpets and paints can easily be changed but undertaking a major remodel can be a monumental task.
The question is just how much can you recoup on a remodel? Will remodeling a kitchen or bath increase the appeal of your home? Will remodeling increase the visual appeal? I decided to do a little internet snooping and here is what I found on the subject of ‘Do kitchens and bathrooms really sell houses?’.
According to USA Today April 13 2018
“Investing in the kitchen makes a lot of sense, as studies have shown as many as 80% of home buyers list the kitchen as their favorite room. When your kitchen is updated, buyers may also be more forgiving of other outdated areas. “I’ve found that my clients are more likely to tolerate an outdated bathroom than an outdated kitchen,” Maria Tabakova, an agent with Triplemint said.”
“Most experts agree a kitchen is key to improving a home’s value and Kevin Deselms, a realtor with RE/MAX Alliance in Golden, CO, advised that if a seller has only enough money to renovate one room, the kitchen is the room to pick. “Kitchens are the focal point of almost every home showing and an impressive kitchen will almost always make the difference between an average offer and the maximum,” Deselms said.”
‘Studies have shown a minor bathroom remodel can provide a 102% return on investment, and you don’t have to spend a fortune to make big upgrades.’
How Do Kitchens and Bathrooms Sell Houses?
The Numbers Game
According to Remodel Works “It is no surprise that a major kitchen remodel comes with a higher price tag, but it is definitely worth it. Major kitchen remodels are one of the best ways to improve the feel of your home because it is arguably one of the most used rooms in the house, and therefore the quickest to become run down. That being said, the return on your investment is not as high as a smaller kitchen remodel. The average cost of a major remodel is approximately $38,769, with a resale value of around $31,344. This means that you will be bringing home an average of 80% return on investment.”
“If you are interested in the numbers behind a minor kitchen renovation, you will be pleased to know that recouping most of your cost is not hard to do. According to This Old House, an average minor kitchen remodel can cost around $14,773 and resell one year later for $13,039. This means that the average return on investment is 87%. So, If you have a tight budget on time and money spent on your kitchen project, consider a minor remodel.”
Simple changes that have a big impact
Are your cabinets in great shape or just looking a little outdated? Paint them. A bright warm white hue will change the whole look of your kitchen. Another easy change is the hardware. Updated knobs or pulls are like the frosting on a cake. A new sink and faucet will bring sparkle to the space. A counter top upgrade to Quartz or Stone provides a big bang for the buck. Replace the appliances for a quick pick me up. These simple remodels can help you sell your home. Need some update ideas, check out our blog 5 Top Kitchen Trends for 2019
How to get the best ROI
Always consult a real estate professional for their view on the condition of your home. Compare homes on the market or recently sold ones and then decide what improvements you might consider making. Obviously if the house needs a new roof or the siding is on its last legs, the kitchen might not be the best first investment. Spending 6%-10% of the value of the home is a good rule of thumb for your remodel. This article from Realtor.com lists the value of some common home renovations.. You should also stick with neutral finishes and remain true to the style of the home. Everything doesn’t have to be white, but light airy kitchens go with every style.
Have you had any experiences with remodeling to sell your home? Let us know.