Kitchen remodeling is a very rewarding experience as it boosts the market value of your home when you consider it for sale. Most old kitchens need a full remodel while other kitchens may require a partial or minor update in order to sparkle.
While remodeling requires you do make some adjustment in your lifestyle, it significantly improves the quality of your life when it’s completed.
As a matter of fact, kitchen renovation offers better value than updating any other room in your house.
But, how much return does a kitchen remodeling really offer?
Let’s take a look:
Kitchen Remodel ROI: Minor Remodel
It’s not uncommon for some homeowners to feel concerned and overwhelmed about kitchen remodeling projects, considering the time and budget that go into them. Plus, when you hear stories about kitchen renovations failing deadlines and going over the allocated budget, it can make you rethink your project. However, minor kitchen remodeling is quite different from major kitchen updates at least in two ways:
#1 – Budget: Since a minor kitchen remodeling involves updating just the surface level features such as adding a kitchen island, updating kitchen cabinets or countertops, they are unlikely to put you under stress financially.
#2 – ROI: Minor kitchen updates are also more efficient in terms of recouping the cost of investment on your kitchen remodeling. According to the 2019 Cost vs Value report released by Remodeling.hw.net, a minor kitchen remodeling is likely to fetch around 80.5% ROI.
What Constitutes Minor Cabinet Updates?
New Cabinets: When it comes to kitchen decor, your guests would invariably notice your cabinets. That’s why cabinets account for 31% of the entire kitchen remodeling budget for homeowners, according to a study conducted by Houzz.
A minor kitchen update, however, doesn’t necessarily mean you replace your old cabinets altogether. A simple cabinet refacing, painting or staining can also dramatically revive your cabinetry and add zing to your kitchen decor within your small budget. Plus, it offers a great ROI as well.
New Floors: Flooring is not exactly a pressing need for many homeowners when it comes to their kitchen remodeling priorities. In fact, homeowners would spend only 20% of their budget on flooring, as per the Houzz Survey. If you’re on a tight budget and hard-pressed for time, you could choose relatively cheaper flooring options such as linoleum or vinyl tiles. However, keep in mind they may not recoup your investments well enough. Go for bamboo or cork if you are aiming for eco-friendly floors.
New Fixtures: A minor kitchen remodeling can also including updating the light fixtures and switches. While homeowners spend only 16% of their kitchen remodeling budget on a light fixture, they can still infuse life into any old and outdated kitchen.
Kitchen Remodel ROI: Major Remodel
A major kitchen remodel typically consists of a complete overhaul of your current kitchen and often takes a long time and a higher budget to complete than a minor kitchen update. However, depending on your future goals, it’s worth it. Since the kitchen is one of the most trafficked rooms in the entire house, it makes sense to spend a reasonable portion of your home renovation on updating your current kitchen. That said, unless you plan to stay in your home for at least 20 years, a remodeled kitchen is unlikely to recoup your investment. In any case, a major kitchen remodel gets lower ROI than a minor kitchen renovation.
Here’s what constitutes a major kitchen renovation plan:
New Appliances: If you want to offer your current kitchen a major update, replacing your old appliances with new appliances is a great idea. When you’re at it, remember to choose an expensive and renowned brand that offer visually appalling, functional and energy-efficient appliances. For many homeowners, one of the compelling reasons for investing in expensive appliances is to boost the market value of their house. A highly functional and aesthetically pleasing kitchen is like to give you a higher ROI.
New Layout: Apart from new appliances, many homeowners consider layout update as a major kitchen remodeling project which typically includes installing an island, updating cabinets and fixture and even shifting stove and dishwasher. While expensive, updating kitchen layout can lead to a boost in productivity as well as increased market value of your home.
While there are various layouts to choose from, L-shape kitchen layout is the current trend, thanks to the open concept plan, efficient work triangle and ergonomic status it offers. Moreover, with the L-shape kitchen, you’re likely to keep the traffic away from working areas.
So, What’s the Average ROI on Kitchen Remodel?
So, there you have it. The average ROI on kitchen remodel depends largely on the scale of the update. While the ROI on a minor kitchen update is 80.5%, it’s lower (62.1%) for a major kitchen renovation, if it’s in a midrange scale. Either way, a kitchen update is always worth as it can improve your overall experience in the kitchen as well as boost the market value of your house.