How to Maximize ROI from Your Kitchen Remodel
What is a kitchen remodel return on investment? Before investing thousands of dollars into a kitchen remodel, this is a valid question to seek an answer to. Keep reading to learn more about the average return on investment for a kitchen remodel.
What is the ROI on a kitchen remodel?
You may choose to invest in a minor, midrange, or major upscale kitchen remodel.
Before deciding how much money to invest, you may be wondering what kind of ROI you can expect. If you plan to remodel a kitchen before selling a home, you should consider how much faster the home will sell with a remodeled kitchen, on top of the ROI.
According to Zillow, 58% of buyers who have purchased a home within the last year report that a preferred kitchen style was important to their home-buying decision.
As a homeowner, you may believe that you can’t afford a kitchen remodel. You may quickly change this belief when you find out the minor kitchen remodels have some of the best ROIs.
If you need new appliances, new cabinetry, and a whole new layout, a minor kitchen remodel might not be an option; however, if you can get away with a minor kitchen remodel, you should consider it seriously.
Regardless of the extent of a kitchen remodel, you should visit Skipp to create the kitchen of your dreams for a fraction of the price of the competition out there.
If you are considering remodeling your kitchen before you sell, it may be a smart idea to renovate, even though you may not see 100% ROI or more. A home with a remodeled kitchen will likely sell faster.
While ROI of a renovation can vary, below are some averages.
Minor kitchen remodel ROI: 81.19% average (average cost of $21,198)
Midrange kitchen remodel ROI: 59% average (average cost $63,829)
Upscale major kitchen remodel ROI: 53.5% average (average cost $125,721)
How much should you invest in a kitchen remodel?
If we use the data above, we can see that a minor kitchen remodel tends to retrieve the best ROI. In addition, it requires the least investment. This can be a win-win situation.
There is a rule known as the 5% to 15% rule. If you follow this rule, then you will spend no less than 5% of your home's value and no more than 15% on a remodel.
If you are setting a budget based on the expected ROI, you should also note that homeowners on the West Coast are likely to see a higher ROI on minor kitchen remodels. Homeowners on the West Coast report an average ROI of 92.9% for minor kitchen remodels, with an average remodel cost of $23,587. Homeowners in the Midwest report a lower average ROI of 67.6%, with an average remodel cost of $21,455.
To determine what your kitchen remodel vision will cost, you can take some measurements and start bringing your plan to life at Skipp. In working with a professional designer, you can create 3D kitchen design plans and start to understand what your kitchen remodel will cost.
Will a kitchen remodel add value to my home?
A kitchen remodel can make your home more desirable while increasing its value.
As an added benefit, you may even enjoy the remodel process. Even if you do not enjoy the process, you are likely to enjoy the end result, which will be a gorgeous and new kitchen designed to your preferences. Ensuring that your kitchen remodel is done right, with quality materials, can impact just how much the value of your home will increase.
How much value does a new kitchen add?
Some may assume that the more extensive the remodel, the more a home will be worth; however, the truth is that you may find a better ROI on minor kitchen remodels.
The value added from a kitchen remodel can also depend on market conditions. If there is a limited supply of homes on the market, you may find that you are able to get top-dollar and have more competition for a home with a remodeled kitchen. In general, you can expect to get about 50% to 60% ROI on a midrange kitchen remodel.
Is a kitchen remodel a good investment?
Kitchen remodels are a good investment whether you plan to sell soon or stay in the home a while.
However, before you go for a major kitchen remodel, you may want to do some research on kitchen remodel return on investment.
Small kitchen remodels typically yield a higher ROI than major kitchen remodels. The key to a small kitchen remodel is making upgrades that matter, like appliances, cabinetry and finishes.
You may also want to mix in some creativity and work with existing cabinets and backsplashes rather than replacing. This can save you time and money while still yielding a high ROI. If you are considering a small or major kitchen remodel, visit Skipp to save money on your renovation, and create the kitchen of your dreams.
Which types of renovations add the most value?
Most of us will have a budget for remodel projects. Alternatively, you may have an ROI goal if you remodel with the intention of selling.
Either way, you will want to make your money go as far as you can. Some of the most simple improvements can add some of the most value.
Replacing garage doors can yield a very high investment of about 93.8%. Below new garage doors, you can consider a minor kitchen remodel. Following a minor kitchen remodel, fiber-cement siding can have an average ROI of 69.4% and vinyl windows can have an average ROI of 68.6%.
Homeowners can also add value to their home by building outdoor structures such as decks or patios, remodeling bathrooms, installing solar panels, and painting the interior and exterior of the home. You will need to assess the current condition of your home to determine which kinds of renovations could add the most value.
Do you get money back on renovations?
In most cases, you will get some of your money back on renovations. In some cases, you may exceed 100% ROI on renovations, but not always.
If you are considering certain renovations you should look up what the average ROI is, if the data is available.
This can help you determine how much you should spend. If you can make renovations that add more usable square footage on your home, you can expect some of the best returns on investment.
For example, if you can finish a basement, you can bump your home sale price into another bracket.
Home renovations can also help your home sell faster, which may or may not matter at the time when you do the renovations.
How much does a kitchen remodel increase home value in 2021?
Among the top 10 best ROI home improvements for 2021, you will find a minor kitchen remodel.
Home renovations are booming in most markets right now, and the trend doesn’t seem to be stopping any time soon.
During the global pandemic, homeowners are finding themselves spending more time at home, which has encouraged more renovation projects. In addition, interest rates are at an all-time low, which is sending buyers into markets with limited properties. This is one of the reasons we are seeing record-high home prices in many areas.
Do kitchen remodels pay off?
Kitchen and bathroom remodels are considered two of the best investments you can make in your home.
Whether you plan to sell or stay in your home, kitchen remodels can pay off pretty well. You can create a more functional and more enjoyable space that you can enjoy for years to come, just by remodeling some crucial aspects of a kitchen.
If you don’t spend a lot of time in the kitchen, you may not find as much value in a kitchen remodel. You may want to consider a few simple improvements such as refacing cabinets, painting a backsplash, or updating hardware, as opposed to a full remodel.