Homeowners may choose to remodel their kitchen for various reasons, but one of the main objectives is to increase their home's resale value. According to Better Homes and Gardens, a properly executed kitchen remodel can result in a 52% return on investment. That is one of the highest ROIs in remodeling!
While kitchen remodels can boost home value, the extent of the increase will vary based on the type and quality of the renovation. DIY remodels can sometimes result in a reduced value instead of adding to it. Additionally, it's important to consider the permitting costs involved, which can range from $350 to $1,800, as unpermitted work may lead to costly repairs and lower offers from potential buyers.
A minor kitchen remodel typically costs $20,000 when done by professionals. It is a remodel that generally doesn’t change the footprint of the kitchen, and the goal is to refinish rather than replace, where possible. It can include updates such as:
cabinet refacing or painting
countertop replacement or resurfacing
flooring replacement or refinishing
A mid-range, major kitchen remodel, which costs an average of $66,000, includes reconfiguring the kitchen's layout, and instead of refinishing and resurfacing existing items, the focus is on new materials, and more customization. Some updates in a major kitchen remodel include:
new high-end countertops
recessed and pendant lighting
layout and wall reconfigurations
plumbing and electrical updates
ductwork and ventilation updates
The cost increases with the amount of customizations and the type of materials used, and high-end kitchen remodels easily top $100,000.
While a kitchen remodel can increase home value, it's essential to consider all the factors involved and understand that the investment may not result in a 100% return. Additionally, if you remodel the kitchen, you’re probably going to want to remodel the bathrooms as well ($12,000 - $30,000). After all, an updated kitchen in a house with outdated bathrooms will make potential buyers see the bathrooms as a major detractor, and that could cost you more in lost offers than the updated kitchen could ever recoup.
If you're weighing the pros and cons of a kitchen remodel before selling, consider contacting us! We buy houses in any condition, even those with outdated kitchens.
Click here to arrange a free, no obligation consultation for an as is cash offer on your home today!