The kitchen is the hub of every home. It’s where the whole family gathers to cook, eat, entertain, and spend quality time together. Uncoincidentally, it’s also one of the most frequently renovated rooms in the house, so people often wonder how much and will a kitchen remodel add value to a home.
There are many ways you can remodel a kitchen, from minor cosmetic upgrades to full-scale renovations. Exactly how much they cost, how they are done, and how much value they bring to a home will be covered in the article below. Stick with us as we analyze each aspect of a kitchen remodel.
How Much Will a Kitchen Remodel Cost?
A kitchen remodel project can get very expensive, very fast, if you’re not being careful with how you spend your money. Mainly, the cost of a kitchen remodel depends on the kitchen size, its layout, and the type of remodeling you’re going for.
For instance, if you have an average kitchen size of 100 square feet galley kitchen and want to do a partial remodel, you can expect to spend around $20,000 on the remodel. In comparison, if you’re going to remodel a dream island kitchen, you can expect to spend upwards of $100,000 or more.
How Much ROI Can a Kitchen Remodel Bring?
When we talk about the value a kitchen remodel adds to a home, we actually talk about the ROI or investment return. The term is pretty self-explanatory, but to be more specific, it represents how much you can expect to get back compared to what you spent on the renovation.
In general, the ROI depends on the type of kitchen you have and the type of renovation you plan on doing. The percentage moves roughly between 50% for high-end remodels and 80% for budget updates. To get an idea of how much this is in dollars and cents, here is a breakdown:
- Partial or budget kitchen remodels typically cost between $8,000 and $35,000. These have the highest ROI of around 80%, which means you can expect to get between $6,400 and $28,000.
- Luxury or dream kitchen remodel projects can cost $50,000 to $150,000, but these bring about 50% of ROI, so you can expect between $25,000 and $75,000.
- The average kitchen remodel cost and ROI are somewhere in between, costing about $25,000 to $70,000 and bringing back about $16,250 to $52,000, or around 65%.
What Adds the Most Value to a Kitchen Remodel?
If you’re on a budget and want to work on only a few things, then you should know what to prioritize, not simply shoot arrows in the dark. Aside from maximizing the ROI, which we discussed in the previous section, this will ensure your budget is used efficiently and maximize the functionality and aesthetics of your kitchen. With that in mind, here are a few things to focus on when remodeling a kitchen:
Cabinet Remodel
Replacing the cabinets and giving them fresh and updated look, increases the appeal and value of the home.
Countertops
You can spend thousands of dollars on high-end granite or quartz slab countertops. Keep in mind that granite and entry level quartz are much more affordable than years past. So, your countertops will look and perform just like the expensive ones without costing as much.
Backsplash
Adding a backsplash can drastically improve the appeal of a kitchen. Installing it typically costs only a few hundred dollars and can even be a DIY project most homeowners can do.
Light fixtures
Good lighting can get you far, especially when you aim to improve the kitchen’s appeal. A few smartly placed light fixtures can make the kitchen look more expensive than high-cost additions or upgrades, but they will cost only a fraction of the price.
How a Kitchen Renovation Affects Your Home Value
While most people look at the renovation value from a purely monetary aspect, a kitchen remodel brings far more value to a home than that.
If you’re planning on listing your home on the market, remodeling the kitchen will likely attract plenty of buyers that are ready and willing to pay extra for the update you’ve invested in. Aside from attracting more buyers, an updated kitchen will help you sell the house easier. Buyers like to see houses that are move-in ready and require no renovation, so they would be willing to pay extra and close the deal faster if they consider your home will be “easier” for them to move in.
And while a home renovation project is great in dollars and cents sense, you can never deny the joy score it brings. It’s the pure satisfaction you get from the aesthetic and functional improvement. In fact, according to research done by the NAR, the joy score of a kitchen renovation is a solid 10 out of 10 for homeowners, regardless of whether it was done by a professional or the homeowner.
How Much Should You Spend on a Kitchen Remodel?
Not every kitchen remodel makes sense, and not all kitchen remodels fit any type of house, so you should be careful with your finances. Three factors can help you determine how much you should invest in a kitchen remodel:
- Home value: The kitchen remodel should reflect your home’s value, namely, its price point. It doesn’t make sense to install professional-grade appliances if your home is worth $200,000, and vice versa. If your home is worth in the millions, the kitchen remodel shouldn’t become the cheapest room of the house and bring down its value.
- Local market: Consider what the market wants. Do buyers in your neighborhood look for new and updated kitchens, or is this not on their list of must-haves?
- Budget: How much are you ready to spend on a kitchen remodel without draining your home equity?
Final Thoughts
In a hot market, springing for a kitchen remodel is a sure-fire investment and will put you ahead of the competition when you’re ready to sell your home. However, you should consider far more than just money when remodeling your kitchen. Consider the aesthetic and emotional value it will add for you and the future owner!
Take a look at our Kitchen Remodel Project Gallery