Why the Kitchen?
Most buyers in the market for a new home state that the kitchen and bathroom are the two most important parts of a home. When people make an offer, these two areas are what potential buyers tend to remember and consider most.
Bedrooms and the living room can easily be changed later by the new homeowner for a fairly low cost. A fresh coat of paint or new flooring can make updating other rooms easy, but the kitchen is where most peoples’ remodeling budget goes.
When you remodel your kitchen, it makes the entire home much more enticing to buyers. If everything is fresh and new, buyers also know that they shouldn’t need to pay for upgrades for at least several years into the future.
Aside from the living room, most families spend a bulk of their time in the kitchen, which is why they want this space to be modern and fresh. High-end finishes and new appliances are key to ensuring you get a decent return on investment.
Even if you think your current kitchen is fine as-is, buyers may see it differently. Over the years, it’s easy to get used to an outdated kitchen and overlook current trends that can turn your hard work into a solid sale.
Major vs Minor Upgrades
Remodeling your kitchen is a big undertaking, but it can have a massive impact when your home goes on the market. Consider the types of upgrades you want to do and get estimates for every component to help you compare.
A simple fresh coat of paint and new appliances are both easier than a total countertop and cabinet replacement. However, if your old laminate counters are worn or your cabinets are from the last century, a remodel is worth considering.
Compare other homes in your area that are for sale, and take a closer look at their kitchen. If your neighbor’s home has stone countertops and stainless steel appliances, you may need to do something similar in order to stay competitive.
Today’s buyers want to see their kitchens look beautiful, but they also want them to be functional for a modern lifestyle. Replace a small double sink with a large farmhouse sink, or install a pot filler over your stove to make cooking more convenient. Consider the ways you can remodel your kitchen to make things easier for the next homeowner.
Aside from functionality, aesthetics are important, too. Old laminate flooring should be replaced with tile or even luxury plank vinyl. Solid surface countertops are extremely popular and certainly worth the investment to get your home sold.
Calculating Return on Investment
All sellers want to get the absolute maximum asking price for their home. Putting money into your home doesn’t always mean that you’ll get it back, or that you’ll make a profit.
It’s important to calculate the return on investment so you know you’re making a sound decision. Ask your real estate agent to give you a list of comparable sales to serve as a starting point. If homes in your neighborhood are selling for around $180,000, it might not make sense to go all out and upgrade to a full luxury kitchen.
Anything new is better than an old, outdated kitchen, but that doesn’t always mean you need to shell out a ton of cash. Resale prices vary widely from market to market, so always keep your local market at the top of your mind.
Try to stick to minor to mid-grade remodeling projects in order to get the best amount of return for your investment. A luxury upgrade will likely help your home sell faster, but it doesn’t mean it will sell for more money if the market can’t support it.
Average ROI Rates
According to Zillow, the national average for a minor kitchen remodel’s return on investment is approximately 81.1 percent. For a mid-range major remodel, the ROI is closer to 59 percent.
Most of the time, you can expect to get anywhere from 50 to 90 percent back on your investment when you remodel your kitchen. It’s important to choose a reliable construction company that’s familiar with your specific market and one that knows what buyers want.
Compared to other parts of your home, remodeling your kitchen is still a smart choice. A new deck or a remodeled bathroom are other smart options if you’re looking to get a decent asking price. Get several estimates to make sure your remodel is within your budget and worth the cost.
Get More with a Kitchen Remodel
When it comes to the value of your home and getting a great return on investment, a kitchen remodel is one of the smartest things you can do when you’re ready to sell your home. Remember to weigh the cost and effort of a minor change versus something major, and always consider your local market.
Explore the current trends in kitchens to make sure you’re giving the buyers what they want so you can clinch the sale.
For more information about our home remodeling services, visit our website, or contact us today.