Even if you don't intend to sell your house in the near future, chances are you have wondered how much value a remodeling project could add to your home. Surprisingly, in many cases, remodeling projects cost more than the amount of value added to the home. If you're thinking about remodeling your kitchen, here is some information about how this project can add home value.
Can a Kitchen Remodel Add Home Value?
Replacing windows, siding, doors, and other old elements tend to provide homeowners with a greater financial return in comparison to larger remodeling projects. However, according to remodeling experts and real estate agents, updated baths and kitchens can still translate to a large payoff at resale time. Kitchen projects in particular often yield higher returns in comparison to bath projects.
A kitchen remodel can add about 80 percent of the cost of the project to the value of the home. And if you are considering selling your home in the not too distant future you should know this. Potential buyers often end up overestimating how much it would cost to remodel a home. If your kitchen is dated, a potential buyer may believe that they will need to spend $40,000 or $60,000 to redo and update the kitchen. Chances are the remodeling project won't cost anywhere near that much but the potential buyer will still want to deduct that high cost from your selling price. It is in this situation that NOT remodeling your kitchen can actually cost you money.
It is important to play your cards right if you want your kitchen remodel to add home value. If your home costs $300,000, you probably shouldn't spend $75,000 to remodel your kitchen. Such a remodeling project is unlikely to lead to $75,000 in value when you sell your home. If you plan on remodeling your kitchen, you shouldn't spend more than 10-15 percent of the value of your home. Also, be sure you redesign your kitchen in a way that is congruous with the rest of your home's decor and architecture.
Updating your kitchen is one of the best projects you can undertake to increase the value of your home.