Is it possible that your kitchen is stuck in the 1980s? You are familiar with this design: a kitchen that is closed off from the rest of the house, with plain oak cabinets, a cumbersome island, hideous taupe countertops, and flooring made of peel-and-stick tile. If this is the case, you should consider giving your home an upgrade so that you can get a better price when you decide to sell it in the future. But let's be honest. How much of an increase in property value can be expected from renovating the kitchen?
When you sell your home, you probably won't get back every penny that you spent on redoing the kitchen when you do get a return on your investment. It's a popular project, but the return on investment is low. Conduct research on this page before beginning the demolition process; you will learn about the costs involved, what you stand to gain, and what you can do to bring those costs down.
Check out our range of kitchen renovation at Hitch Property Constructions.
Different kitchen renovations
Remodelling magazine, which is the industry leader in tracking remodelling cost data, divides kitchen remodels into two categories: minor and major. Major remodels are further broken down into mid-range and upscale remodels, depending on the scope of the project, the quality of the finishes, as well as the amount of time and money invested. We'll dive into that data a bit more later.
You can figure out what kind of remodel is ideal for your home and budget based on three criteria:
- In order to increase your home's value, your renovations should be commensurate with its current market value. Do you think it's reasonable to put commercial grade appliances in a $200,000 home?
- Commercial Area: If your kitchen were completely remodelled, would it be appealing to buyers in your area?
- How much of your savings can you put towards the kitchen remodel without using equity from your home?
Minor kitchen remodel
Most of the kitchen's current structure should be preserved during a minor renovation. This means that the kitchen's current layout will remain the same, and no walls will be moved. You could also reface the cabinets (keeping the boxes) and add new hardware, replace the countertops with granite or quartz, get a new set of appliances that match, repaint the space, or lay down new flooring.
The magazine Remodelling classifies minor kitchen renovations as "midrange" in terms of price due to the modest amount of work required.
Major kitchen remodel
In a typical mid-range kitchen remodel, every appliance is likely to be replaced. Functionality can be enhanced by relocating walls and rearranging furniture. New flooring, an island with semi-custom wood cabinets, and energy-efficient appliances would be great additions. Paint could be applied to the walls, molding, and ceiling.
Similarly, many of the same procedures are used for high-end kitchen makeovers. All the same, the fixtures and fittings will be of a higher quality. This includes things like custom cabinetry, stone countertops, high-end appliances, an imported ceramic or glass tile backsplash, an under-mount sink, a faucet with water filtration, and upgraded lighting, which includes both general and task lighting as well as LED lighting installed under the cabinets. Ceramic tile, porcelain tile made to look like wood, or real wood may be installed.
What is the ROI on my kitchen renovation?
Since it is highly unlikely that you will get back the full amount you invest in a kitchen remodel, the best (and smartest) type of remodel is one that you can enjoy for a few years before selling.
In reality, many homeowners have opted to renovate their homes rather than sell them in recent years because of the shortage of available properties.
But if you're thinking of selling your home, a shiny new (or nearly new) kitchen is a great way to get more people interested in it and potentially increase its selling price.
Minor kitchen remodel ROI by region
The rule of thumb for increasing the value of your home before selling is to spend less money upgrading the kitchen. Your goal should be to achieve a refreshed look without going overboard on either expense or upkeep. A small kitchen remodel, the report finds, yields the best return on investment of any kitchen renovation project in any region.
Looking for kitchen renovation Melbourne? Look no further? Hitch Property Constructions has you covered.
Do I need to renovate my kitchen before I sell it?
To put it briefly, the answer is yes. This is true, however, only if your kitchen renovations are in line with those of nearby homes and the tastes of potential buyers. You won't get your money back, but you could shorten the time it takes to sell the house if you invest in it.
Consider these questions before calling in the pros to tear out your kitchen.
Does remodelling a kitchen in nearby homes pay off?
Inquire of your real estate agent if a kitchen remodel is justified by the area's comparables. If you're in a solo sale, research the competition. You can use these figures as a starting point for a remodel budget.
You shouldn't spend more than $15,000 if houses like yours with similar kitchens sell for $200,000 and houses with remodelled kitchens sell for $215,000.
It may be worthwhile to invest in a more extensive kitchen renovation in a hot housing market with many recently built homes. There's a chance that you'll get lower offers if your kitchen is outdated.
Can I afford a kitchen renovation?
One of your first thoughts will probably be how you can afford it. After all, even if you spend money to improve your kitchen in the hopes of getting a higher sales price when you sell your home, you won't see any of that cash again until after the sale has closed.
To finance the renovations if you do not have enough cash on hand, you can either refinance your home or get a home equity line of credit (HELOC). When it comes time to sell your home, either of these choices will cut into your profits. As a result, you should make sure the project will still be profitable once the chosen method of payment is factored in before proceeding.
Does my house still require repairs?
New buyers will be attracted to a kitchen that has been recently renovated, but if the home inspection reveals major problems in other areas, no amount of quartz countertops or a Viking range will be able to save the sale. Prior to spending thousands of dollars on cosmetic upgrades and repairs to make your home marketable, you should take care of any major red flags, such as structural problems, a leaking roof, a malfunctioning HVAC system, or electrical issues.
Does my kitchen really need remodelling?
You can easily compare your kitchen to the most recent and cutting-edge design trends with the help of the thousands of online real estate listings available today. On the other hand, this doesn't imply that every possible buyer is looking for a completely renovated kitchen. If you want to sell your home but don't feel like dealing with the stress, time, and money involved in a minor or major kitchen remodel and there are no major problems with the kitchen's functionality, then selling without first remodelling it may be your best option.
Hitch Property Constructions has an extensive range of kitchen renovation Melbourne to take the hassle out of deciding the right furniture that matches.
How to improve your kitchen renovation ROI
Use these tips to update your kitchen on a budget and win over prospective buyers.
Match your appliances
Instead of splurging on one expensive stainless steel appliance that will make your kitchen stand out, you should consider making all of your appliances match (so that they are all black or all white).
Refinish or paint your cabinets
If you want to give your kitchen a more modern, updated look without breaking the bank, consider refinishing or painting your cabinets instead of replacing them or just the door fronts. This task is doable by yourself, but it will take a long time to finish. A professional-looking finish requires a lot of work in the preparation stage, such as cleaning and sanding, before the actual coating can be applied.
Refresh your sink grout
Moldy or peeling grout can be easily removed and replaced to make the sink area look fresh and well-maintained. You can avoid buying a new sink and faucet by doing this. You can still complete this task even if you have no plans to replace the counters.
Replace the kitchen faucet
Switching out a classic kitchen faucet for a modern one is a simple and inexpensive fix. Depending on your skill level, you may need to call in a professional plumber.
Invest in new counters if needed
Any kitchen that has damaged countertops should have them replaced as soon as possible, as they can give the room an outdated look. Most money can be saved by using laminate, butcher block, or stainless steel.
Install a backsplash
If your kitchen doesn't have a backsplash, adding one can be a worthwhile investment that will pay off in spades. For the most part, this is something a homeowner can do themselves. Subway tile is a popular and cost-effective option for any project that calls for the installation of tile.
Swap your lights
If your ceiling fixture or pendant light has faded over time, it's easy to swap it out for something more modern. While recessed lighting is the prefered option of many buyers, it does come at a higher cost. If you're looking for a surefire way to make an impression, LED strip lighting installed beneath your cabinets is a fantastic choice to consider.
Change knobs and drawer pulls
Whether you're replacing old hardware or installing it for the first time, you can get the job done in an afternoon without spending a fortune. Perhaps the simplest upgrade there is. What's more, you can upgrade to more modern, and therefore more appealing to buyers, soft-close cabinet hinges.
A Minor Kitchen Remodel Can Yield Major Return on Investment
Remodeling magazine's Cost vs. Value report says small kitchen projects earn an 83% ROI. For every $100 spent on the upgrade, a home's value rises $83. That's a better return than many homeowners get from basement additions, bathroom upgrades, and roofing.
Replace one or two energy-efficient appliances, update your floor or countertops, and paint.
Upgrades are beneficial. You'll enjoy your kitchen more, boost your home's value, and possibly sell for more. Kitchen updates can make homeowners happier.
Major vs. minor
The term "minor updates" should not be used interchangeably with "major kitchen upgrades," which can include the replacement of all appliances, the sink, the countertops, the flooring, and the vents, as well as the addition of an island. Large-scale renovations of this nature can easily run into the six figures for high-end kitchens.
The value of your home would go up as a result of a significant improvement; however, the increase in value might not even come close to covering the cost of the renovation. This is especially the case if the kitchens of the other homes on your street have not been modernised. You would want to carry out a significant remodel for reasons that are more personal than financial.
Know your neighbourhood
If you are considering making changes to the layout of your kitchen, it is a smart idea to get in touch with a few real estate professionals in your area to find out how much the value of your home could potentially rise as a result of a kitchen remodel. If you want to know how much of your investment you can expect to recoup if you make specific changes to your kitchen, talking to local real estate agents can help you figure that out. You want to upgrade your kitchen to meet the expectations of the community, but you don't want to do so at an unaffordable cost.
You should also have a solid understanding of the prices at which other homes in the neighbourhood are changing hands at the moment.
In this way, you will be able to determine the potential upper limits of how much buyers would be willing to pay for your home, regardless of the kitchen upgrades that you decide to make. It is not inappropriate to put money into upgrading your kitchen so long as the changes you make are in keeping with the style of the rest of the house and the other homes on your street.
Other minor home improvement projects with major ROI
A minor kitchen remodel isn’t the only home renovation project that can give you a good return on your money. Here are some other small projects that offer a big payback:
- Adding insulation to the attic. Insulating your home can pay for itself and then some, with homeowners recouping an average of 116.9% of their investment.
- The front door is being replaced. Replacing a standard entry door with a 20-gauge steel door can yield a return on investment of up to 91.1 percent.
- The garage door is being replaced. On average, you can recoup 91.5 percent of the cost of replacing a 16-by-7-foot garage door with a new four-section door on galvanised steel tracks (while keeping the existing motorised opener).
If you plan to sell soon, you may want to do a simple kitchen makeover.
Most new homeowners want to customise their kitchen and bathroom first.
By cleaning up the kitchen, you'll prevent buyers from factoring in the cost of a renovation.
Remove chipped or mismatched tiles, bad paint choices, and old appliances.
If kitchen cabinet doors are plain and in good shape, add new handles. This will update the kitchen cheaply. New kitchen and bathroom tapware offer good value.
If you decide to renovate your kitchen, keep the sanitary ware and tiling simple and white. Not everyone likes handcrafted, tasteful fruit and vegetable kitchen tiles.
How to pay for a kitchen remodel
You can choose from a few different avenues to finance the renovation of your kitchen or any other home improvement project. It is always a good idea to use personal savings to pay for something like this. You could also think about getting a new loan or opening a line of credit against the equity in your home in order to pay for the improvements. You simply need to make sure that the home improvement projects you choose will provide you with the greatest return on investment.
In your opinion, how much of a bump in value can I expect from remodelling my kitchen? Is it reasonable to instal restaurant-quality appliances in a $200,000 house, in your opinion? If you didn't use any home equity, how much could you put towards the kitchen renovation? All appliances are usually replaced during a mid-range kitchen remodel. Redesigning a high-end kitchen uses many of the same techniques as remodelling a standard kitchen.
Though you won't see a return on your investment, sprucing up the house could help it sell faster. Doing a complete kitchen remodel could be a good investment. If your kitchen is old, you may receive lower offers. There are two ways to get the money you need if you don't have it lying around: refinancing your home or opening a home equity line of credit. Putting in a backsplash in a kitchen that doesn't already have one can be a smart move that pays for itself many times over.
Instead of buying new cabinets or even just new door fronts, try refinishing or painting the existing ones. Sink grout that has become mouldy or flaking can be easily removed and replaced. An investment in even a modest kitchen remodel can pay off handsomely. According to the Cost vs. Value report in Remodeling magazine, a modest kitchen renovation can nett an ROI of 83%. The average return on investment for this renovation is 83 cents per dollar spent.
Investing in a kitchen remodel is acceptable so long as it fits in with the design of the rest of your home and the other houses on your street. It's not just a kitchen makeover that can increase the value of your home significantly. White and simple is best when it comes to kitchen renovations, including the sanitary ware and the tiling. This is a low-cost way to give the kitchen a new look and feel. The value of new faucets for kitchens and bathrooms is high. A new loan or line of credit is another option to consider.
- Is it possible that your kitchen is stuck in the 1980s?
- When you sell your home, you probably won't get back every penny that you spent on redoing the kitchen when you do get a return on your investment.
- It's a popular project, but the return on investment is low.
- You can figure out what kind of remodel is ideal for your home and budget based on three criteria:In order to increase your home's value, your renovations should be commensurate with its current market value.
- In a typical mid-range kitchen remodel, every appliance is likely to be replaced.
- All the same, the fixtures and fittings will be of a higher quality.
- Since it is highly unlikely that you will get back the full amount you invest in a kitchen remodel, the best (and smartest) type of remodel is one that you can enjoy for a few years before selling.
- The rule of thumb for increasing the value of your home before selling is to spend less money upgrading the kitchen.
- A small kitchen remodel, the report finds, yields the best return on investment of any kitchen renovation project in any region.
- Inquire of your real estate agent if a kitchen remodel is justified by the area's comparables.
- You can use these figures as a starting point for a remodel budget.
- Use these tips to update your kitchen on a budget and win over prospective buyers.
- You can avoid buying a new sink and faucet by doing this.
- Replace the kitchen faucetSwitching out a classic kitchen faucet for a modern one is a simple and inexpensive fix.
- Resurfacing kitchen cabinets, replacing hardware, and other minor improvements can boost your home's value.
- Know your neighbourhoodIf you are considering making changes to the layout of your kitchen, it is a smart idea to get in touch with a few real estate professionals in your area to find out how much the value of your home could potentially rise as a result of a kitchen remodel.
- In this way, you will be able to determine the potential upper limits of how much buyers would be willing to pay for your home, regardless of the kitchen upgrades that you decide to make.
- It is not inappropriate to put money into upgrading your kitchen so long as the changes you make are in keeping with the style of the rest of the house and the other homes on your street.
- Other minor home improvement projects with major ROIA minor kitchen remodel isn't the only home renovation project that can give you a good return on your money.
- By cleaning up the kitchen, you'll prevent buyers from factoring in the cost of a renovation.
- New kitchen and bathroom tapware offer good value.
- If you decide to renovate your kitchen, keep the sanitary ware and tiling simple and white.
- You can choose from a few different avenues to finance the renovation of your kitchen or any other home improvement project.
FAQs About kitchen renovation
Even a mostly-white kitchen can be very stylish. It's the all-white design that is falling out of style. Once considered the standard for kitchen design, the all-white option—with white flooring, white countertops, white cabinets, and white fixtures—has become a bit passé after being overdone for the past decade.
The two most timeless colors of all, are white, and black. No one can deny the appeal of bright white cabinets streaming across a kitchen, they lighten the entire room and give it an airy, refreshing ambience. Likewise, black cabinets are equally timeless.
Colours such as creams and beiges can make a kitchen look elegant and expensive. If your kitchen is modern, you can use dark colours, such as blacks and greys, which can make it look lavish and extravagant. White reflects light and makes the space look bigger, so complement white with some wood and metallic highlights.
Light shade cabinets are a better choice in smaller spaces or kitchens, especially when there is less natural light. Lighter colours like white and off-white cabinets make the kitchen look and feel bigger. On the contrary, a large space that has ample sunlight can be a good bet for dark-coloured kitchen cabinets.
Go with Light Colors
Light colors are more reflective than dark colors and they will make your kitchen appear bigger as well as more open and airy. Light blues, greens, or pale yellows are other great colors to make your space look larger than life.