How Much Does a Kitchen Remodel Increase the Value of a Home?
This is a common question among homeowners considering a kitchen remodel. The answer is determined by a number of factors, including the project’s scope, the quality of materials used, and current market conditions. However, the industry standard ROI for mid-range kitchen makeovers is between 50% and 60% of your total remodeling budget.
What Determines My Kitchen Remodel’s ROI?
The return on investment (ROI) for a kitchen remodel is determined by several factors. These include the scope of the project, the quality of materials used, and current market conditions. Here’s a closer look at each factor:
The Scope of the Project
A small, cosmetic update will usually have a lower ROI than a major overhaul. For example, painting your cabinets and replacing hardware may cost around $1,000 but will only increase your home‘s value by $1,250. On the other hand, a complete gut job that includes new cabinets, appliances, countertops, flooring, and plumbing fixtures will cost an average of $68,490 but will increase your home’s value by $40,368—a ROI of 59%.
The Quality of Materials Used
High-quality materials usually have a higher ROI than lower-quality materials. For example, solid wood cabinets will have a higher ROI than laminate cabinets. High-end finishes like granite or marble countertops will also have a higher ROI than Formica countertops.
Current Market Conditions
If you live in an area where homes are selling quickly, you can expect to see a higher ROI on your kitchen remodel than if you live in an area where homes are sitting on the market for months or even years.
A kitchen remodel is one of the most effective ways to increase the value of your home. The industry standard ROI for mid-range kitchen makeovers is between 50% and 60% of your total remodeling budget. However, the actual ROI you’ll see on your project is determined by factors such as the scope of work and the quality of materials used. If you’re planning to sell soon, you can expect to see an even higher return on your investment.
