How Much Value Does a Kitchen Remodel Add to Your Home?

So you’re trying to decide if you should put a new kitchen in your home. The estimates are in, and they’re all far higher than you expected. You may be having doubts and wondering if you should really go ahead with the project. Is a brand-new kitchen really worth the cost?

If you’re smart, you’ll think long-term. The money you spend on your kitchen now could pay you back handily when you put your home on the market. So, how much does a kitchen remodel increase home value? The answer may help you decide if you really want to go through with the project.

How Much Does a Kitchen Remodel Increase Home Value?

A new kitchen can increase home value. In general, the value is expressed as the percentage of money spent on the remodel the homeowner recovers after the sale of the home. Better Homes and Gardens says homeowners can expect a return of about 52% on their investment in a new kitchen if they sell their home. The exact amount you’ll recoup depends on a few factors, such as your house value, the value of houses in your neighborhood and the quality of the project.

How much your home value increases is also dependent on how much you spend on the project. According to Moving.com, a major upscale kitchen remodel returns 53.9% of the money invested. Remodeling your kitchen with mid-range fixtures has a 58.6% return on investment. If you do a minor kitchen upgrade with mid-range fixtures, you’ll see a 77.6% ROI.

It may seem counterintuitive that a minor kitchen renovation, such as replacing cabinets, offers a higher ROI than a major renovation, such as changing the structure and layout of your kitchen. You would think that the more money you invest, the more you’ll get back. But, if you take into account that you are spending far less money on a minor renovation while still getting the desired result, it makes sense that the return is higher.

Looking only at the numbers does not show you the full return value. Think about how long you intend to live in the house after you remodel the kitchen. If you plan on moving quickly after the remodel, the percentage of return is the biggest factor. But if you plan on staying in the home for a number of years after the remodel, you should make upgrades that make sense for your family.

What Percentage of Your House Value Should You Spend on a Kitchen?

Experts suggest that homeowners should spend 6 to 10% of the home’s value on a kitchen renovation. Spending more than that might not give you a good return on your investment. You have to analyze the money you’re spending compared to the potential value you are adding.

For example, if your house is worth $500,000 and you spend $100,000 (20%) of the home’s value on a major kitchen renovation, you’ll get see about a 53.9% ROI — or a $53,900 boost to your home’s value.

In contrast, if you spend $50,000 (10%) of your home’s value on a smaller-scale kitchen upgrade, you can expect an ROI of 77.6% — or a $38,800 home value increase.

In the first example, minus the boost to home value, you’ve spent almost $50,000 on a new kitchen. But in the second, you’re only out about $11,000. Don’t just jump into a major renovation thinking it will give you the best return; often, the opposite is true.

Also, take into account the time you plan to spend in your home after the kitchen is remodeled. If you are moving right away, the 6-to-10% rule makes sense. However, if you plan to stay in your home for years to come, you might want to spend more because the investment also becomes about your personal enjoyment of the space.

Does a Kitchen Add Value to a House?

A new kitchen does add value to a house. It’s one of the most popular rooms in the house, and it’s the room where you and your family spend the most time. It’s no wonder kitchens are one of the first rooms that homeowners look at when they’re considering renovating their homes. It’s so popular that real estate experts have listed kitchen upgrades and full kitchen renovations as second and third in a list of home renovations that add value to your home.

But homeowners should consider more than just money when judging the value of their house. There’s also something called the joy score, which measures the satisfaction a homeowner gets from living in a pleasing and functional space. The National Association of Realtors lists a kitchen renovation as having a joy score of 10 out of 10, no matter if the work was done by a professional or by the homeowner.

With this in mind, you can’t judge your home in terms of money only. So, before you start adding up the monetary value a kitchen adds to your home, be sure to consider the emotional and aesthetic value as well.

Backyard kitchen trends provide budget-friendly options

You might think a decked-out backyard kitchen in Pennsylvania defies logic, but thanks to new technological advancements, year-round patio dinner parties are now well within reach — no matter the climate where you live.

“It used to be just the purview of the Sun Belt, but it has spread because of the improvement of materials and design of the components,” says Russ Faulk, chief designer and head of product for Kalamazoo Outdoor Gourmet, an outdoor kitchen equipment manufacturer based in Chicago and Galesburg, Mich. “In a very high-end home, you might have radiant heating under the bathroom floor, and people will do that for their countertop. Flip a switch, melt the snow and use the outdoor kitchen.”

Of course, someone willing to install a counter-warming snow-buster would be on the “pointy end of the budget stick,” as Faulk puts it. The reality is that not everyone can afford all the bells and whistles, such as a cocktail station, a countertop fire feature, custom granite or a grill burner for cooking sauces.

Go for the grill

David Bond, president of Florida-based U.S. Brick & Block Systems, which installs pavers, pools, outdoor kitchens and more, says the grill is the cornerstone for your budget. To stay within your price range, you might have to pass on luxuries, such as a sear zone, a griddle or infrared rotisserie. “That can bring the cost down,” he says, adding that size is less important than quality. “It’s always best to get a good grill brand than to have a big grill that’s not going to last.”

Faulk, who also authored the recently released cookbook Food + Fire: Cooking Outside with Kalamazoo Outdoor Grillmaster Russ Faulk, agrees that the grill is the most important feature of any outdoor ooking space.

“Where I tell people not to scrimp is the grill, especially if it’s being built into masonry,” he says. “If you hate your grill, you’re probably not going to love your outdoor kitchen. And they’re tough to swap out because they don’t come in standardized sizes.”

Faulk adds that opting for movable components like tables and countertops rather than large stone kitchens with built-in grills is an increasing trend, somewhat driven by budget-minded homeowners who like the idea of growing their outdoor kitchens gradually.

“Instead of making your design decisions permanent and literally set in stone, there are a lot of other options to change and evolve your kitchen over time.”

Exceptional extras

When it comes to design, the next thing to consider with built-in kitchen spaces is what type of accent  materials you’re interested in for countertops and cabinets, which often feature some type of masonry. “Typically, the thing with the most impact is the type of stone used on the cabinet,” says Bond. “Most everything else is just stainless steel appliances, so your stone and countertop will make the most difference.”

Despite efforts to rein in the spending, the urge to splurge on alfresco cooking and dining isn’t going anywhere.

“People are using the outdoor of their homes more than ever,” says Bond. “There are certainly instances of people spending more time and money on their outdoor kitchens than they are on their indoor kitchen.”

For those who really want to go all out, popular add-ons include entertainment zones like bars, dedicated cleanup areas and specialty refrigeration like wine coolers, freezers and under-counter refrigerator drawers to keep meat and produce separate. Faulk says smokers and wood-fired grills are especially hot right now, following the cooking trends popping up in restaurants across the country.

“What’s great about the outdoor kitchen, especially how it relates to the enthusiast, is it’s really difficult to implement this specialty equipment in an inside kitchen,” he says of restaurant trends influencing home trends.

He points to the rise in home pizza ovens after chefs across America fell in love with Neapolitan pies.

“You have to be cooking those pizzas at 800 degrees, and that was really hard to implement in your home, so it went outdoors, naturally,” says Faulk, who adds that he expects Argentinian-style grills, which are equipped with an adjustable height and a sloped V-shaped grate surface to allow more precise temperature control and uniform cooking, to gain in popularity this year.

Perhaps the best splurges, however, are those that make your outdoor kitchen available whenever the mood strikes, such as weather-proof cabinetry so you can keep everything you need stocked and handy — or maybe even that fancy countertop warmer.

“If you feel like you have to spend three to four hours to get your outdoor kitchen ready just to use it, you’re not going to be excited about using it,” says Faulk. “It should be always ready to go, always easy.”

 

 

 

5 home remodeling trends to watch for in 2021

After a year of spending more time at home due to the COVID-19 pandemic, many homeowners are looking for ways to make their homes fit their new realities. Open floor plans are out; dedicated spaces for remote work and learning are in. Yards are being transformed into entertainment spaces and walls are being repainted. At the same time, increased demand and safety concerns can make the remodeling process much longer than before.

Here are five trends to watch for this 2021 home-remodeling season.

1. A focus on dedicated spaces

At the start of 2020, “the most requested design concept was open space,” says Jimmy Dollman, principal of Dollman Construction in Roanoke, Virginia. “But now, we face a different set of design implications because everyone’s living conditions have changed.”

Dollman notes that remote workers and learners need privacy and quiet. “A year ago, it was rare for one family member to work from home,” he says. “Now, [parents] and kids find it difficult to get work done because of the noise in the open design.”

This year, expect to see homeowners spending less time knocking down walls to open up shared areas, and more time transforming spare rooms or nooks into dedicated spaces. That might mean adding a home office or home theater, for instance, or transforming a nook into a space for distance-learning.

2. Making room for home offices

To add home offices to residences, “homeowners aren’t adding square footage,” says Doug King, owner of King Contracting, a design-build firm in St. Petersburg, Florida, and president of the National Association of the Remodeling Industry. “Rather, they’re taking out rarely used closets, like in the hallway, and moving interior walls to make space.”

The home office trend isn’t going away anytime soon, he notes.

“Even when the pandemic is over,” King says, “there’ll be a lot of people still working from home.” He notes that because of this trend, use of home technology is also increasing as households install items such as ethernet cables for computer networks and Bluetooth speakers.

3. More outdoor living

One cure for that cooped-up feeling is outdoor living areas.

“People want their backyards to be their oasis,” King says. In his area, he says pools are the No. 1 thing being added to backyards. Outdoor kitchens and fire pits are the next most popular.

Homeowners spending more time at home may also start to seek out remodeling projects that bring beautiful outdoor views inside — for instance, by installing larger windows or glass doors that let in more natural light.

4. Longer wait times

Besides shifts in design trends, homeowners can expect a continued slow-down in the industry. In some cases, safety concerns have changed how contractors and workers approach projects. For example, Dollman has suspended all work in occupied residences to avoid exposure to COVID-19 “to protect the homeowners and our crews,” he says.

Getting permits can also take much longer than usual as demand increases and those who approve the permits adapt to new working conditions — for instance, working at home rather than in the office, or working with a limited staff.

5. Bold colors

For homebound do-it-yourselfers looking for affordable ways to make rooms more welcoming this year, adding a colorful fresh coat of paint will likely be high on their list.

A sign that bold colors and color combinations could be gaining favor: They featured prominently among Color of the Year winners for 2021 announced by brands including Sherwin Williams, Pantone and Benjamin Moore. Sherwin Williams selected Urbane Bronze (a dark brownish-gray), for instance; Benjamin Moore selected an Aegean Teal (a blue-green color); Pantone selected a color duo: Ultimate Gray and Illuminating (a gray tone alongside a bright yellow color).

For homeowners, striking paint colors like these could be an appealing low-cost way to add depth, excitement and personality to a room without overwhelming it.

How to make your next home improvement project a success

Whether you are remodeling your home, making needed repairs, or sprucing things up to put your house on the market, the following tips will help make your next home improvement project a success.

  • Come up with a budget and stick to it. Home improvement projects can get expensive, fast. If you don’t want to break the bank, create a realistic budget to figure out how much you can spend ahead of time. Be upfront with contractors you hire about how much you can spend on a project as well.
  • Think about the pros and cons of DIY projects. If time and motivation is no problem for you, you may be able to tackle some basic home improvement projects on your own, but other projects may require further expertise. If you don’t have a background in construction, it’s usually best to hire a contractor to help with larger projects, such as plumbing, tiling, tree removal, exterior painting, and general remodels.
  • Give high priority to projects that keep your home clean and safe. If your home is in need of repairs, take care of those projects first. For example, fix that leaky roof before you give your home’s walls a fresh coat of paint. In addition, don’t forget to stay on top of regular home maintenance tasks to maximize the cleanliness and safety of your home.
  • Up the value of your home with a bathroom or kitchen remodel. Remodeling your bathroom or kitchen can completely change the look and feel of your home, creating a space you enjoy being in – not to mention it can add quite a bit of value to your home. For large scale remodels, hire a contractor that specializes in construction and remodeling services.
  • Improve energy efficiency. Save money (and the environment) by improving the energy efficiency of your home. Energy saving projects that are worth taking on include checking and replacing the seals on all windows and ducts in you home, installing new windows, and looking into green energy options like solar panels.
  • Get multiple quotes from contractors. When you are ready to start your home improvement project, be sure to get multiple quotes from several different companies. Never be pressured into hiring the first person you speak with. Comparing pricing and services is a critical step in choosing a skilled contractor you can trust.
  • Properly vet contractors before you hire. Even if the price is right, don’t hire a contractor before doing some research. Ask the contractor to provide references. Look up their name or company name online and pay close attention to any reviews or complaints from previous customers. Verify that the contractor is licensed and insured and get an estimate and contract in writing. Read contracts carefully before you sign them.
  • Think about permits. For larger projects, you may need to pay for building permits. Do you research ahead of time and understand that even if you hire a contractor, you may still be responsible for the cost of the permits.
  • Don’t get scammed. Stay alert to any suspicious behavior on the part of “home improvement specialists.” Red flags include not putting things into writing, demanding upfront payment, unexpected price changes, high-pressure sales tactics, unsolicited free inspections (that usually reveal the need for an urgent repair), and cash-only deals.
1 2 3 6