How Much Value Does a New Kitchen Add to a Residential Property?
How much value does a new kitchen add? It’s a common question for home renovators. We would like to offer our expertise as a kitchen remodeling company in Montreal with many years of experience.
A kitchen upgrade is worth considering if you are looking to add significant value to a residential property. Kitchens are increasingly becoming a mixed space where food is prepared then shared between family members and guests. Consequently, kitchens have become a focal point in most modern homes. No kitchen goes unnoticed. Whether the goal is to attract buyers or to simply revamp a frequently used space, investing in your kitchen reno is guaranteed to leave a lasting impression beyond its monetary value.
How Much Value Does a New Kitchen Add?
A thorough cross-examination of this topic can be found on HomeLight as conducted by the Joint Center for Housing Studies of Harvard University. So, how much value does a new kitchen add to your home? There is consistent, reliable data to answer this question. The evaluation of homes across multiple geographic areas has some interesting numbers to show. They state that a kitchen remodeling adds an average of 5% to 15% to the overall value of a home. To crunch specific numbers, we can place the average kitchen renovation cost at approximately 65 000$. This will add a minimum of 40 000$ to the home’s value, with an expected return of about 62%.
These are conservative figures, however, and depend heavily on the demographics of a region. Some home owners that reside in areas where the real estate market is booming, such as the Greater Montreal area, can see positive ROI from kitchen renovations.
Different Factors that Influence Home Resale Value
Your Home’s Geographical Location
Despite the aforementioned figures, the expected ROI (return on investment) of a kitchen renovation can be proportionately higher. Exactly how much value does a kitchen add? On the West Coast, for example, homeowners can easily expect to recoup 93% of their investment despite the typical 68% of an average kitchen renovation cost (Source: USA Cabinet Store). In a similar manner, it’s essential to consider the demographics of a specific neighborhood. If the area is up and coming, one could expect proportionally higher returns as well.
Cost of Kitchen Renovation
As a rule of thumb, the ROI of your kitchen renovation will decrease with increased spending. While the industry standard ROI for mid-range kitchen remodeling falls between 50%-60%, upgrades for smaller kitchens (less than 24 000$) can recoup up to 75% with ease. This trend is not so strict in luxury homes, which have a much higher price tag to begin with, thus allowing for a proportionally higher resale value.
Overall Value of Your Home
The reason higher-priced kitchen remodels recuperate less money is that buyers can only be expected to pay so much beyond the market price. It’s reasonable to expect a 10% increase in value after a kitchen remodel, but a 50 000$ renovation on a 250 000$ home would hardly expect to earn a proportional ROI. This is where the base value of a home comes into play. A 500 000$ home that undergoes a 50 000$ kitchen reno can add a higher proportion of those expenditures to the final sales price because the same dollar amount is a relatively smaller percentage of the house’s overall value.
5 Kitchen Upgrades that Increase Value to Your Home
When sifting through kitchen renovation ideas, it helps to visit a kitchen renovation company to seek expert advice regarding where to start. There are specific home improvements that add value to your kitchen. Prioritizing the following details can help you use your budget efficiently when planning a kitchen renovation.
Cabinet Refacing and Refinishing
A kitchen cabinet renovation is an easy way to transform a large percentage of a room’s surface area. Changing the type of wood or even refinishing the surfaces with a different color scheme can completely change the atmosphere in the room. Shades that are drastically lighter or drastically darker will influence the way the space feels and how modern the kitchen looks.
Kitchen Countertop Upgrade
Changing the work surfaces could add an entirely different vibe to the whole room. Upgrading the countertops to granite or marble allows your kitchen to take on a new life, appearing much more prestigious. Due to the longevity of premium countertop materials, the majority of this investment will be recuperated all the while elevating the aesthetic of your kitchen space!
New Tile Backsplash
A fresh tile backsplash behind the stove or sink can bring an element of freshness to a dull, outdated kitchen space. The strategic use of a new backsplash will tie all elements of the space together. It highlights the chosen color palette while adding texture to unify the new theme of a refurbished kitchen.
Modern Kitchen Appliances
69% of buyers will pay more if they see new appliances in your kitchen remodel (Source: USA Cabinet Store). Installing new stainless steel appliances not only improves kitchen functionality but also adds a modern aesthetic to the current layout.
Kitchen Sink and Faucet
A brand new sink and faucet layer an added dimension to the space, tying all other elements together at a modest price. There are endless styles available that can tailor to the most unique kitchen ideas.
If you plan on adding home equity by remodeling your kitchen space, we encourage you to use a licensed kitchen renovation company, such as Kasselwood Fabricators. There’s no substitute for the knowledge that comes from decades of experience being a luxury kitchen remodeling company in Montreal. Understanding current trends while incorporating premium craftsmanship throughout your new kitchen will showcase visible signs of quality and taste for long-lasting home improvements that add value to your living space.