Will A Kitchen Remodel Increase My Home Value?
In todays crazy real estate market, it is hard to know what will and will not affect the value of your home. With home getting offers sight unseen and the buyers waiving inspections to be more appealing to the seller, it's difficult to determine if spending the time and money to remodel your home will be worth it. The good news for you is that answer is almost always yes. Of course, it depends on the finishes, fixtures, and other things that go along with a remodel. Most potential home buyers don't want a lime green kitchen with pink blue cabinets(yes, we have seen this before). So being calculated in how you attack your remodel will almost guarantee an increased value in your home. This leads to the question of, how much will it increase the value of your home and will the increase outweigh the expense. The answer to that is, it depends.
Let's assume that if you owe anything on your home, it's a fair amount and not some inflated figure do to the boom in housing prices over the last 18-24 months or so, then it's pretty safe to assume that if you were to invest in a remodel, it would pay for itself and then some. In many cases, remodeled or upgraded homes are selling nearly 3-4 times faster than homes that are more dated. The reason for this is because home buyers in this market want a house that is "turn-key" and will require little-to-no work for them when they move in. If your home shows it's age, potential home buyers will more likely pass right by the listing online or low-ball you for the reasoning of, "we will just end up remodeling it anyways".
Now, you may be asking, "yes, that's me, I have a fair market priced home and I want to remodel it to increase the value of my home, how much will the remodel increase my home's value?" Well, to answer that, it depends. There are a lot of variables hen doing a remodel. But if we were to dive into averages to give you an idea of what a remodel would look like for your home, we can do that. To give you an example, most remodels of kitchens or bathrooms have an average of a 70%-78% ROI(return on investment). What that means is that if you were to spend $50,000 remodeling your kitchen, in this market it is fair to assume you would see a return of about $80,000-$89,000. So after your entire remodel is paid for, you just put $30,000-$39,000 into your pocket. For most homeowners, that would be worth tackling the remodel. Now this isn't always the case but it is an average return that most homeowners are seeing in this market.
To ensure you get the highest return out of your kitchen remodel, it is important that you hire a designer to help pick out colors of cabinets and paint, countertops, hardware and plumbing fixtures, as well as flooring and appliances. Designers typically know what is hot in the market and what will continue to be desirable to prospective home buyers for the coming years. They can help you plan and coordinate your remodel to ensure you get the most bang for your buck. The next thing you will want to ensure you do is then hire the contract that can take the design specifications provided by your designer and bring them to life for you. It is important to look for contractors that can do work similar to what it is you're trying to achieve. Most licensed contractors are capable so just make sure you do your due diligence and make sure the contractor you choose has the qualifications to be able to handle the job. After the remodel is complete, consider hiring a professional real estate photographer to best capture your newly remodeled space and give you some really show off worthy photos. While the last part isn't necessary, it is recommended to be able to present the space in its best light.
Hopefully with this article I was able to help you determine wether or not that remodeling project you have been considering is worth taking on. If you are in the Northern Nevada, Reno, Sparks, or Incline Village areas and you are interested in learning how are team of remodeling experts here at Paramount Craftsman Services can help you increase the value of your home, you can get in touch with us by heading over to our website by clicking here and filling out the Get Your Quote form.