Seller Tip: Updating Your Kitchen Adds Value to Your Home
A new kitchen can increase home value. In general, the value is expressed as the percentage of money spent on the remodel the homeowner recovers after the sale of the home. Better Homes and Gardens says homeowners can expect a return of about 52% on their investment in a new kitchen if they sell their home. The exact amount you’ll recoup depends on a few factors, such as your house value, the value of houses in your neighborhood and the quality of the project. How much your home value increases is also dependent on how much you spend on the project. According to Moving.com, a major upscale kitchen remodel returns 53.9% of the money invested. Remodeling your kitchen with mid-range fixtures has a 58.6% return on investment. If you do a minor kitchen upgrade with mid-range fixtures, you’ll see a 77.6% ROI. It may seem counterintuitive that a minor kitchen renovation, such as replacing cabinets, offers a higher ROI than a major renovation, such as changing the structure and layout of your kitchen. You would think that the more money you invest, the more you'll get back. But, if you take into account that you are spending far less money on a minor renovation while still getting the desired result, it makes sense that the return is higher. Looking only at the numbers does not show you the full return value. Think about how long you intend to live in the house after you remodel the kitchen. If you plan on moving quickly after the remodel, the percentage of return is the biggest factor. But if you plan on staying in the home for a number of years after the remodel, you should make upgrades that make sense for your family.