How Much Does a Kitchen Renovation Add to Home Value?

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Your home is your refuge. It is the place where you relax, recharge and raise your family. For many families, the kitchen is the heart of the home. It’s the place where everyone gathers during parties, homework gets done and memory-making meals are created together. If your kitchen is outdated or doesn’t function comfortably, you may be considering home remodeling contractors who specialize in kitchen design for an update or plumbing service. While you will have many considerations when thinking about a kitchen remodel, perhaps the most prominent is ‘how much does a kitchen renovation add to home value?’. Even if you are not currently considering selling your home, understanding how renovations can increase home value is important to make the decision to hire kitchen remodel contractors.

Investing in Your Home

The amount that homeowners have invested in remodeling or upgrading their homes has increased by 7.5% according to the Joint Center for Housing Studies at Harvard University. This may seem to correlate with the question of ‘how much does a kitchen renovation add to home value?’ but this is not necessarily true. Considering each element of a kitchen renovation, such as cabinet refinishing and refrigerator repair or replacement, can help you understand the areas where your money will have the biggest impact. Thinking through each element and considering options will highlight the improvements that will answer the question, ‘how much does a kitchen renovation add to home value?’.

Consider Future Value

When you are asking, “how much does a kitchen renovation add to home value?” one thing to think about is not necessarily how you view the project but to consider what a future homebuyer may be looking for. This is true even if you are not currently considering your home. It’s helpful to look into the future when making decisions about remodeling. Most buyers will not be searching for a home in perfect, new condition. If they were, they would consider hiring a custom home builder instead of shopping through existing houses. With this in mind, homeowners considering remodeling have to take on the mindset of a realtor. What features would make a great impression on future potential buyers? This helps answer the question, “how much does a kitchen renovation add to home value?” The basic idea is to consider what things can be fixed or upgraded. This helps you identify critical areas that the remodeling project needs to focus on.

How Much Does a Kitchen Renovation Add to Home Value?

The first tasks on any remodeling project need to address any safety or health risks. This can include hiring an electrician or retaining plumbing services. Once those issues are taken care of, you can turn to the many cosmetic improvements you have in mind. Asking, “how much does a kitchen renovation add to home value?” can lead you to discover that, like many other homeowners, you simply feel that your kitchen needs a facelift. This is perfectly fine and can help you focus your hard earned dollars in the areas that will have the most impact. Realtors often note that homeowners who invest in a major kitchen remodel often see the return of 80.9% of every dollar they put into it should they sell the home later.

Finding Information to Answer the Question, “How much does a kitchen renovation add to home value?”

There is a lot of information freely available that can help you decide, “how much does a kitchen renovation add to home value?’ One place to start is with the National Association of Realtors (NAR). They produce an annual report that provides information on national and regional statistics. They highlight information about which types of remodeling projects provide homeowners with the best returns. While this may not provide you with the ultimate decision that you should make about your kitchen renovation, it does offer valuable information that may help you select where you want to invest your monies. If you have a local real estate agent, they can also be valuable sources of information about the types of remodeling projects in the area that have produced the best returns for homeowners.

“How Much Does a Kitchen Renovation Add to Home Value?”: Renovate or Upgrade

From a real estate standpoint, it’s often the kitchen that motivates buyers. Even if you are not currently intending to sell your home, it’s helpful to keep this in mind. Many realtors will also tell you that, if you are considering a renovation or upgrade, the kitchen is where you find the most return on investment. Deciding whether to do a full kitchen renovation or simply upgrade some features is a personal decision that you will need to make. Most kitchen upgrade projects will average about $35,000. However, they only add approximately $20,000 to the home’s value. A full renovation comes with a higher price tag, around $65,000. If the home sells, about $40,000 of that will be returned. When you compare the costs and returns of remodeling and renovation projects, it may cause you to pause and consider the extent of the project that you are considering. If cosmetic fixes will improve the overall appearance and functionality of the kitchen, that may be the smarter move.

Considering Remodeling Options

In some cases, the appearance of the kitchen can be improved simply to painting and deep cleaning. Small touches, such as new drawer pulls or a new kitchen faucet can completely change the overall impression of your kitchen. These are things to consider before investing in new high-end countertops and other big changes. If you are indeed planning a kitchen remodeling project to increase the home value for sale, you need to look at several variables. If a home is valued at $425,000 without the remodel but you want to sell for $450,000, you may see that investing $40,000 in a kitchen remodel may not be worth it. You may find other areas of the home where investment will provide a larger return.

Finding the Center Point

When you are considering a kitchen remodel, things can get confusing. ‘Do I call the plumbers, or do I have an energy audit done?’ ‘Should we simply repaint?’ These are all questions that homeowners have. Sometimes, the only thing that you need to have done is to repaint the kitchen for a fresh new look.

Repainting the Kitchen and Updating Cabinets

The kitchen is the heart of the home. It is the one space that where everyone gathers. Repainting can be a minor remodel that can bring new life into the kitchen. The kitchen paint, including the walls and cabinets, takes a lot of wear and tear. In fact, over time you may not notice fading or dingy paint. Your guests may begin to notice it before you do. An out-of-date kitchen decreases the home value. So, take care of these projects will increase the value of your home.

When considering updating your kitchen and your kitchen design, keep in mind that past trends in the kitchen are most likely out of date. There are two choices for updating the cabinets in the kitchen: refacing and refinishing. Refacing means putting on new cabinet doors. This can be the more expensive proposition. On the other hand, with refinishing a professional sands then paints or stain the existing cabinet doors. This can give you a more durable and even a custom finish for the cabinets. This gives them an entirely new look. Clearcoat finishes can protect them from everyday wear and tear. When choosing the colors that you want, consider the other elements in the room such as the flooring and the countertops. A good rule of thumb is to contrast the colors in the space. With light flooring, considering using dark cabinets. This gives the kitchen a fresh look without a complete renovation.

New Flooring

Another area that you can focus on in the kitchen to increase home value is the flooring. If you are staying in your home, focus on flooring that fits your lifestyle. If you are considering selling your home, you’ll want to think about what potential buyers will be looking for. There are several options when it comes to upgrading your kitchen’s flooring. Each comes with a different price point and aesthetic options.

Vinyl Flooring

Vinyl flooring is an affordable option. Today, many colors and designs are available. Another benefit is that it is easy to install.

Tile

For a polished kitchen look, tile is a popular option in kitchens. If you currently have tile in your kitchen and love it, look at the grout and see if it needs to be attended to. Dirty, grungy grout can make the kitchen look old and not cared for. This can decrease the home’s value. Porcelain tiles are preferred over ceramic ones as they can chip over time. Also, look into colored grout. This can keep the kitchen looking cleaner and fresher longer.

Laminate

For the kitchen environment, laminate is a popular option. You will have the appearance of wood flooring, but it will be easier to clean. If you are intending to sell your home, be aware that some potential buyers don’t like laminates so this may not enhance your home’s value.

Stone

If you are looking for a complete lift in the kitchen, consider stones such as limestone, marble, or granite in the kitchen. Stone has a long lifespan. It will also increase your home’s value.

Consider Adding Wood Flooring for Additional Value

Adding new or refinished wood flooring could be the answer to your question of how much does a kitchen renovation add to home value? New flooring or refinished wood flooring can actually add a lot to your home’s revalue. Most homeowners see a $3,000 investment but fully recover the costs according to NAR 2017 Remodeling Impact Report. Replacing flooring with wood actually provides most homeowners with a 91% return. As a lower cost home renovation project at about $5,000, this renovation can add about %5,000 to your home’s value. This can be a more valuable choice to raise the value of a home when you are considering a kitchen remodel project. There is a question that you have to ask yourself when you decide, how much does a kitchen renovation add to home value? One thing that makes the most sense is to replace carpet and vinyl with wood. Now whether you choose hardwood or laminate is up to you. Most home buyers are looking for hardwood floors because they are easier to clean. Although, many homebuyers do look for laminate floors because they last longer. Another area of thought is that scratches on laminate floors are not easily removed so they seem permanent. With hardwood floors, they can be sanded on a seasonal basis and look like new. The choice is yours based on your preference and style.

Upgrading to Hardwood or Laminate

If you decide that upgrading your flooring is the best investment for your kitchen remodel, you’ll have to determine what the best material will be. Hardwood has the best lifespan but can be expensive at $15 a square foot. However, Laminate is available for about $2-8 per foot. The additional benefit of laminate is that it is easier to install. Most units simply snap together. This can make them easier for homeowners to install themselves. If you are intending to sell the home, choosing between laminate and hardwood can make all the difference. For a luxury home, if you invest $20,000 for hardwood flooring, you’re likely to see a 90% return on your investment. For most homeowners, though, the investment of that amount of money could see a much lower return. Considering these factors can help you decide which kitchen remodeling projects make the most sense for you financially.

Adding Additional Square Footage

While adding additional square footage to the kitchen will definitely increase the home value, it will require a major renovation. Home values are determined by a price by square foot to set the base value. Adding a kitchen nook or expanding the kitchen work area will add to the increase in square footage and home value.

When you are considering a kitchen renovation and are asking, “how much does a kitchen renovation add to home value?” there are a lot of things to think through. Some renovations add value, while others may simply be nice upgrades to have. It can seem confusing when you are asking, “how much does a kitchen renovation add to home value? Ask questions. Do your research and select the elements that will have the most impact. This will help you create the kitchen you love.

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