How Kitchen Renovations Affect Your Listing

If the kitchen is the heart of the home, then it’s a safe bet it can make or break the sale of a house. So how exactly do kitchen remodels affect the deal? Undoubtedly, remodeling will improve your home’s aesthetics and functionality, but homeowners question whether it will be worth investing their time and money. It can be tempting to update with the trendiest options, but sometimes those come with a hefty price tag and don’t live up to the hype. As one of the most expensive upgrades you will ever make, you want to be confident in your return of interest (ROI). Let’s look at the different levels of renovation, and you can decide what is worth your resources.

Renovations come down to three categories: minor, midrange, and upscale. Do you want a complete overhaul, including heavy demolition, or do you simply want to make your kitchen appear more stylish with some new finishes? I spoke with a local general contractor specializing in custom kitchen and bath renovations. For our local area, your average kitchen remodel is roughly between $40k-$64K. This price includes everything from the backsplash to flooring to custom cabinetry and lighting but will not allow for a gourmet appliance package and granite countertops. If you want more high-end options such as these, you’ll need to add another $20k-$30k. That could potentially be nearly $100,000! Yikes!

A minor renovation will not only look better but could improve the functionality too. Start with choosing new paint colors. Atlanta’s top interior designer, Barbara Westbrook, refers to paint and color choice as ‘The Transformers.’ “There’s no easier or more affordable way to change a space or create a mood,” she quoted. But don’t stop with wall color! Two-toned kitchen cabinetry is all the rage, with greens, grays, and blues dominating the list. Add some new hardware, lighting, a new appliance, a backsplash, and voilà! Your kitchen will look completely renewed! The average cost of a minor kitchen update can range from $5,000-$17,000, depending on your tastes and finishes. 

If you don’t need considerable changes such as wall structure, a midrange upgrade may be for you. It doesn’t include new wiring and plumbing but could entail a new appliance package, backsplash, flooring, surfaces, lighting, and cabinetry. Again, it will not involve top-of-the-line options such as granite and luxury, commercial brand appliances like Viking or Jenn-Air. To reiterate, a major upscale can include all of the above plus possible structural changes to the room itself. Plumbing and electrical changes will likely be part of your major renovation. 

But! The big question is, how does this affect my home’s resale and appraisal value?

According to www.ramseysolutions.com/real-estate/how-will-a-kitchen-renovation-affect-value, the national average ROI for an upscale kitchen renovation is about 54%. Before making decisions, you should always check with local real estate agents and general contractors. Their expertise will give you a more solid idea of the initial cost and how much ROI you would recoup upon selling your home.

Now let’s look at your ROI on a less costly renovation. In our area, your ROI for a midrange update can be as high as 78-84%. That is a much better rate than a major upscale! You would benefit from enjoying your remodel while knowing you made a good investment. The ROI for a minor renovation goes back down to about 60%, which is still a better investment than spending nearly $75k to $100k for an upscale renovation.

What happens when the right price, in the right neighborhood, meets a kitchen disaster? You contact PATH Realty! Because neighborhood is a key factor in your type of renovation, it’s vital to enlist the aide of realtors with experience in your area. For example, you would never see a reasonable ROI if you invest in an upscale renovation in a neighborhood where average home prices are $200-$350k. Here at PATH, our team of experts is up for any challenge. We frequently engage with local professionals that are ready with solutions for your problems.

Of course, there are other benefits to a remodeled kitchen that have no monetary value. Real estate experts are the first to tell you that an aesthetically pleasing home goes under contract more quickly than those that are not. Plus, the added enjoyments and comfort of a new kitchen are priceless. No one wants to struggle with faulty appliances, cramped spaces, or outdated, worn cabinetry. Those issues can be addressed without spending an exorbitant amount of money, and you will be more likely to have a good ROI when it comes time to sell. 

A home remodel is an excellent investment that can give you and edge on the market. But that investment can turn into a catastrophe if you don’t know the market and hire the right professionals. You want to go into this investment with confidence in your ROI especially when you need to make your home more appealing for listing purposes. And no one is better equipped to get you started than PATH Realty. Contact us! We can’t wait to hear from you!