What Type of ROI Does a Kitchen Remodel Provide?
The decision to remodel a kitchen is a huge undertaking. Not only is a kitchen redesign a disruption to daily life in your home that can last weeks, but it’s also a financial investment that should be weighed carefully before any work is started.
While it is true that there are a great many moving pieces when it comes to planning and executing a kitchen renovation, homeowners should not just contemplate the interruptions and financial cost, but rather what they will gain in the process. Not only will a brand-new, functional and aesthetically pleasing kitchen result from all the hard work, but a distinct return on investment (ROI) is sure to please your wallet.
Real Estate Experts Weigh In
According to Fortune Builders, a premier real estate education company, there are two types of rooms that tend to sell houses: kitchens and bathrooms. Therefore, it’s not a surprise that when it comes to home improvements, the kitchen tends to be the hottest place for home improvement!
Real estate experts explain that whether you have plans to sell your home now or sometime in the future, a kitchen remodel will have a high return on investment, so you might as well get started on your new kitchen and enjoy it during your years in the home.
If you are planning to move in the next 5-10 years, your kitchen’s functionality and aesthetics should be something you should seriously consider. According to a Zillow Group Consumer Housing Trends Report, 58% of buyers who purchased in the last 12 months said having their preferred style of kitchen was extremely or very important to their home-buying decision.
Reasons For a Kitchen Remodel
Homeowners choose a kitchen renovation project for any number of reasons. Some find that their cooking area is dated and dysfunctional for their family’s needs, while others want something fresh and new to be the focal point of their family gatherings.
No matter what reason you have for renovating your kitchen, the return on investment is sure to build your confidence when making the move toward this project.
Average Kitchen Remodel ROI
Determining the return you will get on your kitchen renovation investment depends on a number of factors including whether you have decided to partake in a major or minor remodeling project.
Minor kitchen remodels often take the form of replacing cabinets, appliances, wall colors, countertops, and hardware. Major kitchen renovations may mean overhauling the entire kitchen, moving walls, redesigning the layout, and upgrading everything from the appliances and countertops to the cabinets and lighting.
The most savvy kind of remodel is one that you can enjoy for years as a family before you plan to recoup the cost during a sale, according to Zillow, the online real estate marketplace company.
While there are many components that can determine your ROI for your specific kitchen, real estate experts have been studying this phenomenon for years and can make some ballpark figures on what percent of your investment you will recoup after a kitchen renovation.
A 2020 Cost Vs Value Report shows that depending upon the extent of a remodel job, homeowners who complete minor kitchen remodel tend to have an ROI between 70-80% while larger kitchen renovations tend to gain a 50-60% ROI.
Is It Worth It?
In a word…yes. Kitchen remodels can not only be a good idea for people who plan to sell their homes in the future, but also for those who want to enjoy the kitchen for the years that they are living in the residence. Having the right layout, functionality, and the aesthetics that match their lifestyle is well worth the time and effort you and your contractor will put into your new kitchen remodel.
