I recently read an article in Reliable Remodeler that said kitchen and bathroom remodeling yield the best return on investment (ROI). The article said, “On average, a Kitchen Remodel will yield an ROI of 80-100%! This is an amazing rate of return on any investment, but the added bonus is that as a homeowner, you get to enjoy the benefits of your kitchen remodel until you sell your home.” (Reliable Remodeler) Although the housing market and geographical location of the home are major factors in ROI, there is another return that is part of the equation. Your project is also an investment in your lifestyle –a place to enjoy on a daily basis AND a financial asset. What a WIN-WIN!
You may ask yourself, “Can I expect to recoup my money when I sell my house?” …not an easy question to answer… it depends on many factors. It is always good to have a general idea of what your renovation might be worth, but ask yourself this question as well, “Is the net amount I spend worth the increased enjoyment?” Many of our clients make the conscious choice to invest more than they hope to recoup because they love their homes and want to enjoy their years living there.
Another question you should ask is, “What will the ‘cheap alternative’ really cost me?” If you don’t choose quality products, going cheap will really cost you a lot in the long run. Let say you remodel your kitchen but choose to use very basic, entry level cabinets, ie “cheap stock cabinets” because you only plan to stay there a few years. Five years later you are ready to sell, and guess what? The cabinets look like they need to be refinished, or worse – replaced. You will get no value from the renovation that you performed. Every buyer looking at your home will discount their offer, taking into account that they need to do the kitchen over. Had you invested, just a little bit more, say 10-20% more on a better cabinet, you would be reaping the rewards of your earlier remodel. The rest of the money you spent on demo, plumbing, electric, counters, tile, etc. become invisible. Unfortunately for you, you won’t be given credit for those items. In the buyer’s mind, bad cabinets equate to needing a new kitchen.
Here are a few benefits of remodeling your kitchen and how to improve your current investment.
- Invest in quality materials: Your kitchen is the heart of the home and how long it endures is a testament to the sound materials you put in it. When choosing cabinetry, hardwood and metal varieties will give you the best return on your dollar due to their appearance, longevity, and strength. As your kitchen is used daily, you will appreciate how hardwood and metal will last through kids and the everyday abuse that comes with a family kitchen. When selling your home, buyers will appreciate your remodeled kitchen or bath and realize that you chose quality materials, which will eliminate the need for them to make another substantial investment in their new home.
- Opt for decorative enhancements: In some home markets, the reality of not doing a kitchen remodel forces their homes to sit on the market longer when trying to sell. By renovating your kitchen and adding decorative enhancements, your home will be competitive and not lagging behind the standard. According to Consumer Reports, “…not redoing the kitchen could cause the home to sit on the market for much longer than normal and to eventually sell for less than similar homes in the area.” Choose enhancements such as crown molding, glass doors, lighting, and decorative hardware to create a personalized kitchen that you will enjoy using for many years.
- Additional storage is always an amenity: More storage is one of the top complaints that home buyers have when looking for a home. It’s also one of the top complaints when you’ve lived in your home for years. When renovating your kitchen, additional storage is another win-win scenario. Kitchen renovations can add storage with additional cabinets, unique storage accessories, and creative space solutions. Not only is additional storage a great selling tool, your family will appreciate this luxury every day.
The benefits of investing in a renovated kitchen are twofold. The quality material, enhancements, and storage make life easier for you while you live in your home and allow you to experience daily life in a beautiful kitchen. When you decide to sell your home, the kitchen will be the number one attraction, and you will be elated that your investment paid off with money in your pocket and reduced time on the market.