If you want to spice things up with a stylish showpiece in your home, the kitchen is the hottest place to be. It’s no surprise that the kitchen space is one of the most important to potential home buyers. And if you’ve got the budget, why not enjoy those bonuses in your own home right now?
People choose kitchen remodelling for a variety of reasons. According to a study, 43% of respondents remodelled because they could “no longer stand the old kitchen.” Following closely behind, 40% said they wanted to update their kitchen all along but just became financially ready.
It makes sense that the price tag can stop some people from a renovation project. Whether you’re planning for just a few well-chosen updates or a complete overhaul of your current space, kitchen remodels don’t come cheap. So how do you know if it’s the right investment for you and your home? Is it really worth it?
Looking for kitchen renovation Melbourne? Look no further? Hitch Property Constructions has you covered.
Does a Kitchen Renovation Increase Home Value?
In a word: yes. Most realtors will tell you that kitchens sell houses, but increasing home value and getting a big return on your spend isn’t the same thing. As you make a home renovation budget and determine which efforts are worth the cost, you’ll need to evaluate whether the expense of a major kitchen remodel is efficiently offset by the increase in home value that if affords.
Turning back to Remodeling magazine’s Cost vs. Value report, here’s how various degrees of a kitchen renovation increase home value:
- Minor Kitchen Remodel – Midrange
Average cost: $23,452
Average resale value: $18,206
Recouped expenses: 77.6%
- Major Kitchen Remodel – Midrange
Average cost: $68,490
Average resale value: $40,127
Recouped expenses: 58.6%
- Major Kitchen Remodel – Upscale
Average cost: $135,547
Average resale value: $72,993
Recouped expenses: 53.9%
Data was not provided for midrange major kitchen remodels.
You’re rarely—if ever—going to get a 100% return on a home improvement investment. For that reason, it’s important to do a careful cost-benefit analysis and determine whether it’s worth spending tens of thousands of dollars (the average cost of all kitchen renovations is $25,093, or $150 a square foot, according to HomeAdvisor) to increase your home’s value.
Key to keep in mind here is that just as a stunning, updated kitchen can sell a home, an outdated kitchen can stand in the way of a sale. So even if you can’t do a complete kitchen renovation, you’ll still have something to gain from making targeted improvements (more on those later).
How Will a Kitchen Renovation Affect Your Home Value?
In most cases, you can count on your updated kitchen to boost the value of your home. It’s no shock that buyers are willing to pay more for high-end finishes and thoughtful upgrades.
According to a recent survey, 80% of homebuyers placed the kitchen in their list of the top three most important spaces.
And of buyers who bought homes without certain features, 69% of those surveyed said they would have paid more for new appliances and 55% said they would have paid more for granite counters. An updated kitchen can help your house stand out for prospective buyers, which can help you sell faster and for more money. That’s great news if you’re thinking about selling in the future. But just because your home value goes up doesn’t necessarily mean that you will recoup the total cost of remodelling when you sell. Hitch Property Constructions has an extensive range of kitchen renovation Melbourne to take the hassle out of deciding the right furniture that matches.
What Is the Average ROI of a Kitchen Remodel?
How much you can typically recoup on a renovation has a lot to do with how much you spend and what kind of renovations you choose. For example, the national average ROI for a major upscale kitchen remodel is almost 54%. That means you recoup about $68,000 after spending around $126,000.
What about a smaller renovation project? The average cost of a minor kitchen remodel is about $21,000, and the average amount of recouped is $17,000. That’s an ROI of 81%.
Your ROI can also be influenced by where you live. For example, while the national average ROI for a minor remodel is 81%, the percentage increases to 93% if you live in the Pacific area of the country. Do you live in North Dakota or Iowa? You can only expect to recoup 68% of the cost based on national averages.
There’s no one-size-fits-all ROI for kitchen remodelling. Your ROI depends on the specifics of your local market, which is why we always recommend talking to an expert real estate agent. They’ll be able to give you solid advice about which kitchen renovations offer the best returns.
Kitchen Updates That Add a Lot of Value
For many homeowners, a $20,000+ renovation cost isn’t quite in the budget. For that reason, it can often be a good idea to break up a renovation into its component parts and pick and choose the upgrades that make the most sense for your wallet and your objectives. These five kitchen updates will increase your home’s value without requiring a major renovation and are a good place to start if you want to stretch your dollar as far as it will go.
Repainting Cabinets and Adding in New Hardware
Cabinets are one of the most expensive parts of a kitchen renovation, clocking in at 30% of your total spend. You can spend about a tenth of that however by opting to work with your existing cabinets instead. For about $300 in paint costs and $200 in hardware costs, you can give your cabinets a completely new look—no costly installation required. For a little more money, you can buy trim to give the appearance of shorter cabinets reaching to the ceiling, or take on another DIY project that will add height without requiring a complete redo.
Swap Out Your Countertops
Your kitchen’s countertops are a focal point of the space and can stand out in all the right ways—or all the wrong ways. As such, you can achieve a lot by putting your money into a countertop update. Look for materials that are less costly but can still provide a clean and modern look, such as laminate and Formica. Modern manufacturing techniques have made these materials look and feel a lot more expensive than they used to, making them a great solution to reviving a dated kitchen.
Update Your Appliances
It’s a lot easier for buyers to envision making their own updates to a kitchen if the basics like upgraded appliances are already there. While it will still cost you a decent amount, centring your kitchen renovation budget on appliances—such as a new fridge, updated range, or double oven—adds increased functionality to space and is one of the fastest upgrades that you can make. And since appliances often go on sale, you’ll probably be able to get a great deal if you time your purchase right.
Put In New Light Fixtures
Light fixtures serve as prominent features in any room, including your kitchen. A show-stopping fixture then (or at least a clean, modern one) will make a good impression when it draws the eye, and will set the tone for the look and feel of the rest of the space. Suppose you’re not sure where to start. In that case, it’s worth bringing in an electrician to tell you what’s possible or to rewire existing electrical work so you can add in a different type of fixture—for example, swapping out a dated flush mount light with a more stylish pendant light.
Add in a New Kitchen Sink
Putting in a new kitchen sink is another one of those updates that give you more bang than you would expect for your buck. Homeowners spend a lot of time at the kitchen sink, and they’ll notice right away if it lacks in style or utility. For about $400 total for the price of a new sink and installation, you can add in a quick and thoughtful touch that buyers will definitely appreciate.
Is a Kitchen Renovation Worth It?
The answer depends on you and your goals. A kitchen renovation will increase your home value, even if you don’t totally recoup your costs.
Let’s look at it this way: If you are planning to sell your house in two months, it may not be smart to put $60,000 into a new kitchen if your real estate agent only thinks you’ll recoup $40,000. That’s $20,000 down the drain! In that case, it makes more sense to do a few smart renovations that may only cost $5,000. The right updates can give your home value a boost before hitting the market—and help you attract as many buyers as possible!
What if you plan to enjoy the kitchen yourself? Having a kitchen that you love can impact your day-to-day life in positive ways. Of those who remodelled in 2017, 33% said they have a healthier lifestyle after renovating their kitchen. Nearly 50% said they have more family time, and 41% said they cook more at home. It’s hard to deny those benefits!
As for finding a professional to do the job, use our tips on how to find a handyman, plumber, or other service providers so that you can be sure to select the right person for the job. Do plenty of research before selecting someone, since going the cheap route or working with someone who isn’t completely familiar with what they’re doing will almost certainly end up costing you more in the long run.
Even if you don’t recoup the whole cost of your remodel when you sell, updating your kitchen can still be a good investment for you and your family. Check out our range of kitchen renovation at Hitch Property Constructions.
Helpful tips in renovating your kitchen
Plan ahead to save money
Financing can take longer than a remodel. It takes an average of 45 days after pre-approval to get a home equity line of credit. It may take longer, so apply at least three months before you’ll need it.
Set a realistic budget
The national average for a mid-range major kitchen remodel was $56,768, according to the Remodeling 2015 Cost vs. Value report. That’s for semi-custom cabinets, mid-range appliances and laminate countertops in a 200-square-foot kitchen. Their national average for an “upscale” major kitchen remodel (with custom cabinets, high-end appliances and stone countertops) in 2015 was $113,097. A mid-range minor kitchen remodel (without new cabinets) in 2015 was $19,226. Those numbers broken down for the Phoenix market were slightly lower: $55,269 for a mid-range major kitchen remodel; $110,646 for a major upscale kitchen remodel and $18,839 for a mid-range minor kitchen remodel.
Electrical work alone to update the 35-year-old wiring in our kitchen was $4,175. Quartz countertops and installation cost $4,265. Raising the ceiling meant re-routing the main air duct, which got complicated, as did removing a structural half wall. Overall, the total Ikea bill for all appliances (dishwasher, cooktop, double oven and installed microwave) was $3,500; the cabinets cost just shy of $8,000. But construction costs meant the whole project came in just under $35,000.
Hire a kitchen designer
A designer who knows the product extremely well can save you a lot of time and frustration and help you maximise storage in a tight space. You’ll probably only remodel a kitchen once, so it really is worth it to consult an expert on the best and most efficient layout.
Pick a good contractor
Make sure your contractor is licensed, understands what you want, is someone you can work with and is a bit of a perfectionist.
Don’t skimp on key pieces; sprinkle in bells and whistles
For things like a sink that will get hard, daily use, don’t skimp.
Pick quality countertops
Quartz countertops — made from natural ground stone bound with resin — are a growing trend. They fit a modern aesthetic, come in tons of colours and are more durable and maintenance-free than other surfaces. No question, quartz was a splurge, but worth it.
Add shine with a backsplash
A backsplash is the jewellery of a kitchen. What you choose can define your style and either add to or detract from a cohesive look.
Choose efficiency oversize
By maximising the space, remodel your small kitchen to feel roomy, because a spacious-looking and the efficient layout could make cooking much less stressful.
Here’s where to splash the cash in the kitchen
If you’re putting your property on the market, buyers are going to test out every working part of your kitchen. So, it’s important to ensure every feature operates as it should. Below are some ideas on what to renovate to ensure you impress buyers in your kitchen.
Ensure top-notch drawer quality
Think function over fashion. Buyers are going to open drawers and cupboards, so before you think about design and colour, be sure to ensure your hinges and runners are working well.
Add some storage space
You can never have enough storage space in the kitchen. If you don’t already have one, you could think about adding in an island bench. This allows for ample storage, but also additional bench space. If you have spare wall space, you can easily add shelving or hanging ranks too.
Replace the benchtops if they’re worn
If your benches are looking a little outdated or are slightly damaged, it could be a smart idea to update your benchtop. If you don’t want to spend too much money, you can use materials such as hard-wearing laminate, which can be used to replicate luxury materials like marble or granite.
It’s easy to forget about features like powerpoint covers and light switches. You can modernise your kitchen at a low cost by updating features like these.
Choose your colour palette wisely
Every buyer has a different taste. So, while it’s important to style your kitchen in a way that you feel is attractive, leaving a blank canvas can often attract even more buyers than if you spend money on trendy features which may, in fact, turn some buyers away. Buyers can then style the kitchen their own way.
The mistake of overspending
It’s important not to over-capitalise when you’re renovating your kitchen.
Over-capitalisation means spending too much money on renovations, improving the property beyond its resale value and not being able to recoup the amount spent upon sale.
Before you start your kitchen renovation, be sure to ensure your proposed kitchen renovations won’t make the rest of the house look unappealing. For example, if you’re willing to spend $20,000 on a kitchen renovation, perhaps redo your budget and spend $12,000 in the kitchen and $8,000 in other areas of the house. This should increase the level of buyer interest.
If you’re renovating your kitchen ahead of selling, a good place to start is talking to a real estate agent. They can tell you what buyers in your area are looking for in terms of kitchens, and give you suggestions on improvements you can make to attract more buyers. You can compare real estate agents in your area here.