The kitchen is one of the most important rooms in the house and has a direct effect on how much you can sell your house for. As such, kitchen remodeling is one of the more popular projects for increasing a home’s resale value.
Of course, the question remains: how much value does a kitchen remodel add? The answer is that it depends on several factors. Read on to learn more about the expected ROI of a kitchen remodeling project.
According to a 2023 survey from Remodeling Magazine, a major kitchen renovation or upgrade has an average ROI (return on investment) of 31.7%. That means that for every $100 you spend on your kitchen remodel, you are increasing the resale value of your home by about $37. The average major remodel project cost $154,483 and increased the average home sales price by $48,913.
In contrast, the average minor kitchen remodel project had an average ROI of 85.7%. The average minor kitchen remodel cost was $26,790 and increased home value by an average of $22,963.
Compared to other popular home renovation projects, such as bathroom remodeling or window replacement, kitchens have a higher average ROI. All other things being equal, smaller kitchen remodels have higher returns.
What Factors Influence Kitchen Remodel ROI?
How much value does a kitchen remodel add? That depends on three key factors:
Your location
Total remodeling costs
Kitchen upgrades
Let’s go over each of these factors in detail.
Location
The first relevant factor is your home’s location. Different housing markets see higher ROIs for home renovation projects, kitchen remodels included. For example, the Mountain states consistently saw the highest ROIs for minor kitchen remodels at 90.2%.
The features of your local market also matter. Kitchens that are smaller and less updated than neighboring houses will see lower ROIs. Various markets might also have extra desirable update features, such as granite countertops.
Remodel Costs
All other things being equal, returns are higher for smaller kitchen projects. After a certain cost, you start to get diminishing returns. So, it is sometimes better for your wallet and returns to settle on a smaller project rather than a larger one.
Upgrades
Your choice of kitchen upgrades also heavily influences resale returns. Despite what many might think, extremely specific and custom kitchen remodels have a lower return because it can be harder to sell a home with a very specialized kitchen space.
Rather, remodeling efforts should focus on universal design features of the kitchen, such as creating open and functional spaces. The more general the kitchen upgrades, the easier it will be to sell.
Which Kitchen Updates Have the Highest Returns?
Just like different rooms carry different returns, different kitchen elements have higher or lower returns. The four kitchen elements that carry the largest returns are cabinets, countertops, appliances, and flooring.
Cabinets
Cabinets affect how you organize your home kitchen, and subpar cabinets can make it much more difficult to use. Aside from functionality and organization, cabinet aesthetics can increase home resale value. Cabinets are often the first thing prospective buyers see when they enter a kitchen, so shabby and low-quality cabinets can generate a negative first impression, even if the other kitchen elements are good.
The good news is that cabinets also tend to be one of the cheaper parts of remodeling a kitchen. So, if you are looking for a simple minor renovation that has a good ROI, you can just replace or refurbish your cabinets, choosing the rightkitchen cabinet paint recommendation to give them a fresh, updated look.
Countertops
Countertops and backsplashes connect your cabinetry to the rest of the kitchen and also have functional utility. Granite and marble are the two countertop materials that are in the most demand and offer the highest returns.
Backsplashes, in particular, can highlight visual designs and protect your walls from food and moisture when using your kitchen. The trick is investing in backsplashes that tie together the aesthetic of your kitchen.
Appliances
Kitchens tend to have the most appliances in the home, so appliances are a major feature buyers consider when evaluating a home. Homebuyers are sensitive to trends, so make sure you research what kinds of appliances are popular. Modern trends include energy-efficient appliances and smart appliances.
Even something as simple as a water dispenser on a fridge can boost resale values, so consider and choose appliances carefully when updating equipment. Your choice of appliances can also make your home more accessible, further increasing the potential pool of buyers.
Flooring
Kitchen flooring can have extremely high ROIs — as high as 70% to 90%, depending on the material and design. Hardwood floors generally have the highest returns and are also the most expensive to install. Factors that can affect the resale value of a new floor include its durability, lifespan, and maintenance requirements. Also, many homeowners will pay more for a floor they can refurbish instead of replace.
Even though hardwood floors have the highest returns, you can still recoup a respectable amount from tile and laminate flooring. Keep in mind that different markets favor different floor types, so a laminate remodel might have a higher ROI than a hardwood remodel, depending on the features of surrounding homes.
How Much Should I Spend on a Kitchen Remodel?
Traditional wisdom says you should spend about 10% of the total value of your home on remodel costs. So for a house that is worth $400,000, try to set aside at least $40,000 for a kitchen remodel. Below are some additional tips on creating a remodel budget:
You want to spend the majority of your budget on kitchen elements that need to last the longest, like flooring, appliances, and cabinets. Replacing these is a hassle, so spending more now lets you get the most out of your investment.
Don’t “over-update” your kitchen with trends that might be obsolete in a few years. Specialized kitchen equipment might seem like a good idea now, but it may make your space harder to sell. If you are renovating your kitchen specifically to sell your home, remodeling should emphasize fundamental and universal features of the space that appeal to all buyers, such as layouts, storage options, and appliances.
Add an extra 10%-15% to your estimated budget to account for variance and unexpected costs. Overplanning your budget is much better than underplanning and running out of money halfway through the project.
If possible, you can save money by refurbishing kitchen elements instead of replacing them. For example, if your cabinets are less than 10 years old, refinishing or refacing them costs less than replacement but yields similar returns.
Try to do all yourrenovations at the same time instead of piece by piece. Piecemeal renovations will take up more time and money and also may require redoing sections. Also, your kitchen will be out of commission for less time, so planning around the construction schedule is easier.
Award-Winning Kitchen Remodeling in Fairmont, WV
So, how much value does a kitchen remodel add? It depends on several factors. The best way to ensure you maximize the ROI on a kitchen remodel is to hire an expert kitchen remodeling business. Fairmont Kitchen Center has the skills and know-how to make your dream kitchen a reality. Check out our project gallery for samples of our award-winning work!
Are you interested in planning a kitchen remodel? If so, send Fairmont Kitchen Center a message online or give us a call today at (304) 362-7033!
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