How Much Does a Kitchen Remodel add to Home Value?
If you are thinking of a new look for your kitchen, you will get to know a lot from this article. If you think about the long term, consider kitchen remodeling as an investment and not an expense. Read the full article to know if this investment will give returns or not and answer similar questions.
What is a home value?
A newly remodeled kitchen can surely increase your home value. Generally, the home value is how much percent of the money spent on the remodel a house owner recovers after the sale. In other words, it is the percentage of return on investment (ROI) a homeowner can get.
How much value does a kitchen remodeling add?
According to NAR & NARI’s 2022 Remodeling Impact Report, homeowners can expect a recovery of 67% on their investment in their kitchen remodeling. That means. If you send $25000 to your kitchen, you are likely to get a return of $16750. The exact percentage also depends on other factors like the total value of a property, construction quality, and property value in your locality.
The home value or ROI varies according to how much you spend on your kitchen remodeling. As per the 2022 Cost vs. Value report of Remodeling magazine, a major upscale kitchen remodel returns 52.5%, a mid-range kitchen remodels 56.1%, and a minor kitchen upgrade returns 71.2% of the money invested.
For example, If your property is worth $80000 and you spend $16000 (20%), then you are likely to get a boost of 52.5% or $8400 to your home’s value. On the other hand, if you spend $8000 (10%) of your home’s value, you can expect an ROI of 71.2% or $5690.
Is kitchen remodeling worth it?
A kitchen is said to be the heart of a home. It is one of the most essential and popular rooms in the house. It is the first place many people look when purchasing a house. A new kitchen surely does add value to your home, and kitchen remodeling is worth it.
How much should you spend on kitchen remodeling?
According to the experts, a homeowner should spend only 6-8% of his/her home’s value on the renovation of a kitchen. An expenditure more than that might not give a fair return on your investment. A proper analysis of the money you are spending is crucial for you.
As mentioned in the example above, a minor kitchen remodeling will give you more returns than a major upgrade. Hence do not directly jump for a large-scale renovation. Also, consider the time you will be spending in the home after remodeling. If you stay for a few years after the renovation, the ROI percentage may be lower.
Taking the help of professionals can be helpful.