Want to remodel your kitchen? You’re definitely not alone.
According to a survey by the National Association of House Builders, a whopping 81% of remodelers said kitchens were their most popular project, with bathrooms a close second.
But before you start dismantling your cabinets, it’s important to figure out how much the entire renovation is going to cost. And just as important is how much money you can expect to make back if you sell your home in the future.
Mitten Made Properties has been embedded in Metro Detroit real estate for quite some time, and we’ve learned a thing or two about remodeling costs and return on investment (ROI).
First, let’s talk cost. According to Harvard University’s Joint Center for Housing Studies, the median amount that homeowners spend on kitchen remodels is right around $12,000. Research by Homelight, however, indicates that kitchen remodels can cost anywhere from $10,000 to $50,000, depending on the scope of the project.
So, how deep does it make sense to go? In our experience, here’s a good rule-of-thumb for prioritizing projects, starting with projects that bring the highest ROI on down to the lowest:
- Fresh paint
- Add kitchen island
- Add walk-in pantry
- Create an open floor plan
Now, keep in mind that the average ROI on a kitchen remodel is 54%. In other words, if you spend $20,000 on the project, it will only increase the total value of your home by $10,800 when it’s time to sell.
That might not be such a big deal if you plan to enjoy your new kitchen for several years before selling, but if you’re thinking about remodeling only with the goal of increasing the value of the home, then it’s probably not such a good idea.
Knowing you should expect to lose 46% of the money you spend, ultimately you’ll want to pursue the kitchen changes that will make the biggest difference for your family.
As always, another option is to look for a new home that already has the kitchen you want. Mitten Made Properties can buy your current home completely as-is, for cash and on whatever timeline you choose – in as little as two weeks. We’ll even pay all closing costs, so you can focus on moving into the home of your dreams. Give us a call at (248) 883-3340 to find out more!