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Planning on increasing your home's value with one investment?
Kitchen and bathroom remodeling projects are one of the best ways to increase the value of your home. Here's the problem though…
While some homeowners break the bank for their renovations and still only see a meager increase in value, other smart remodels are completely self-funding.
The problem is most homeowners don't know which kitchen improvements add value and which are complete waste of money.
Which Kitchen Upgrades Actually Increase Home Value?
The Smart Way to Budget Your Kitchen Remodel
Avoid the Biggest Kitchen Remodeling Mistakes
Small Changes With Major Impact
Current industry reports state that minor kitchen remodels offer up to a 96% return on investment which is incredibly high for home improvements.
But… When you take the investment even higher with major kitchen remodels your return rate drops drastically down to between 50% and 65%.
What gives?
The answer is in the choices. Minor kitchen remodeling projects take more of a wide-net approach, opting to upgrade everything that buyers notice. This gives a kitchen the updated, modern look they're expecting without breaking the bank.
Major remodels, however, start getting into the realm of personal choices and luxury amenities which are more subjective, and less likely to be appreciated by the next homeowner.
Insightful, right?
The most value-conscious homeowners know where to place their remodeling budgets for the best bang for their buck. Here are some of the areas that see the highest returns:
Updated Appliances – Energy-efficient new appliances are a huge bonus for buyers, and stainless steel always looks great and is classic.
Quality Countertops – Granite and quartz remain king in the kitchen due to their timeless, elegant looks and durability. Skip super trendy materials.
Cabinet Refacing – You don't always have to replace cabinets, sometimes all it takes is a fresh coat of paint, some new doors, and updated hardware.
Improved Lighting – Under-cabinet lighting and pendant lights make your kitchen pop and give it that finishing touch buyers love.
Smart Storage Solutions – Pull-out drawers, lazy Susans, and pantry organizers show buyers that your kitchen is both functional and beautiful.
One of the most common questions from homeowners is:
“How much should I spend on a kitchen remodel?”
The Answer: Never spend more than 15% of your home's value on a kitchen remodel.
Your home is worth $300,000? Make sure your kitchen budget stays at $45,000 or less. There's no point in over-improving for your neighborhood.
This is where most homeowners go wrong… They think by spending more they're increasing the value of the space more. In reality, smart choices will beat big spending any day.
Let's break down this smart budget further:
In order to achieve the best ROI, divide your remodel budget by this percentage:
40-50% – Labor and installation
20-25% – Cabinets and hardware
15-20% – Appliances
10-15% – Countertops and backsplash
5-10% – Flooring and finishing touches
Breaking down your kitchen remodeling costs into these categories is a great way to ensure you're putting money into the areas that truly add value, while also avoiding pouring too much money into finishes and details that won't give you a great return.
For those of you planning on a remodel for both your kitchen and bathroom spaces, combining a bathroom remodel in New Britain with your kitchen improvements is an excellent way to tie two rooms together and give your home an overall cohesive and modern feel that buyers are sure to appreciate.
When it comes to remolding your kitchen, the biggest thing to keep in mind isdon't over-personalize your space.
Some have everything from custom pizza ovens to wine fridges in every corner to ultra-specific tile patterns that scream out the word "unique" in 5 foot letters. These are things that look amazing when you like that style but turn off buyers when you're ready to move.
Buyers want to be able to see themselves living in your house, not your personal design statement.
Here are the biggest mistakes homeowners make when it comes to a kitchen remodel:
Buying Too Trendy – That bright orange backsplash or neon green countertop might be all the rage now but will you feel good about it in 5 years? Stick to classic, timeless upgrades.
Ignoring the Triangle – Inefficiencies in the kitchen triangle (sink, stove, refrigerator) is a costly layout issue. Buyers are turned off by bad work triangles.
DIY Installation – The urge to DIY everything is understandable, but if installation looks like it was done by a hack you'll lose money on resale. Buyers see crooked cabinets.
Over-Improving for Your Neighborhood – If your home is in a $200,000 neighborhood don't spend $100,000 on your kitchen remodel. Adjust your spending to your neighborhood value.
Neglecting Storage – Buyers might be wowed by those shiny new countertops, but if there's nowhere to put their things they'll quickly stop loving your kitchen.
Big changes aren't always necessary to create a high-impact kitchen remodel. In fact sometimes the smallest changes make the biggest difference.
Here are the quick fixes that catch the eyes of buyers:
Fresh Paint – Neutral paint colors make your kitchen look brighter, cleaner, and newer than ever. Stick to warm whites and soft grays.
New Hardware – Updating your old pulls and handles to modern styles will give your kitchen the updated look they're looking for. Plus it's super inexpensive.
Fresh Faucet – A new, modern faucet is both a functional upgrade and a style choice buyers notice.
LED Lighting – Put those LED strip lights under your cabinets and make your countertops look like they're made from higher end materials.
Add a Backsplash – Retain those old countertops? A backsplash can change the entire mood of your kitchen and is an easy DIY project.
For a mere $5,000 or less, these small kitchen remodel ideas can give your home the finished feel that is enough to wow any buyer.
Remember, how you present your new kitchen to buyers matters. Keep countertops clear and uncluttered, and open cabinets to show off their organization.
One study shows homes with kitchen remodeling sell 10% faster than those with outdated kitchens. When you want to sell quickly and increase your home value, a smart kitchen remodel is one of the most powerful investments you can make.
Kitchen remodeling is still one of the smartest investments you can make in your home but results come down to making strategic choices versus expensive choices.
If you want your kitchen remodel to completely fund itself, remember to spend smart, stay within budget, and opt for high-return updates first. Also remember that the remodel doesn't have to be for you, it's for the next homeowners to love as well!
Kitchen and bathroom remodeling projects are two of the best investment to increase your home value. But you have to do them in a smart way.
Here's the key points to remember:
Minor kitchen remodels can give you 96% ROI
Spend less than 15% of home's value for remodel
Classic and timeless upgrades give best returns
Simple, high-impact changes can be just as effective
Professional installation is important for resale value
Smart kitchen remodeling isn't about spending the most money, it's about spending your money in the right places.
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