Realty Executives International
Kitchen Projects for a High ROI
Whether it’s a minor upgrade like painting or a more significant project like installing new cabinets, your kitchen is a great place to add value to your home. In fact, even minor kitchen remodels have an 81% return on investment, according to Zillow, making it a smart place to invest money and increase the value of your home.
Before getting started, consider these tips and tricks for kitchen renovation projects to maximize your return on investment and get the most bang for your buck.
When is the right time?
Many people wonder whether it’s worth upgrading or remodeling their kitchen before listing their house. One way to decide if it’s a good financial decision is to compare your kitchen to other homes in the area that are also for sale. If you notice that many homes have been upgraded or feature new appliances and designs, it can help your home’s value to make changes to your home before listing it for sale.
Even if you have no plans to sell your home, upgrading your kitchen can still increase your home’s equity and add value to the property. Ensure you can afford any upgrades before getting started since you won’t be able to recoup the investment until you sell the home.
Improvements with the best ROI
When deciding which kitchen remodel projects to work on first, consider which ones will garner the best return on investment. Here are some popular projects that will help drive value in your property.
Adding or Upgrading Counterspace
The more counter space in the kitchen, the better. Adding additional counterspace during a kitchen remodel can increase the area needed for prepping food, and options like a sit-in island or counter-height peninsula can add convenient seating for your eat-in kitchen. While the average cost to install counters is around $3,000, according to Home Advisor, you can expect to get up to 80% of this back when you sell the house, thanks to the added functionality and increase in space.
If you don’t need to add counter space but want to install quartz or granite countertops, you can expect to recoup up to 80% of your investment.
If your kitchen needs a facelift, one of the easiest ways to do that is to upgrade your appliances. Since most appliances have a lifespan of at least 10 years, this enhancement will not only visually help your kitchen, but you – or the new owners of the home – will be able to enjoy the appliances for a long time.
If your kitchen appliances are due for an upgrade, you might also notice an unexpected benefit — lower energy bills. As technology and energy standards have changed over the last several decades, appliances have also become more energy efficient. To increase the ROI of your upgrades, search for appliances with an ENERGY-star sticker to see how much it will cost to operate annually and determine how much you can save.
No matter the room, installing new or upgrading flooring is a popular way to increase your home’s value. This is especially true in the kitchen, one of the most trafficked rooms in the house.
While new flooring can be a major renovation project, it can dramatically modernize a kitchen and improve the home’s lifespan. Installing real hardwood can cost anywhere from $3,000 to $15,000, but vinyl plank flooring is more affordable, with prices starting at $1,000, depending on the size of the room and materials.
Upgrading or Adding Cabinets
Cabinets are often the main focal point of a kitchen, serving as the foundation for the room’s visual identity. But, if your cabinets are outdated or there is minimal storage space, investing the money into new cabinets will deliver a high ROI, with some estimates calculating a full 100% return.
Depending on your budget, there are several ways to improve the look and functionality of your cabinets. Even adding a new coat of paint and replacing the hardware can return a high ROI and involve minimal construction or renovation. However, if you have the resources, replacing or refinishing the cabinets can transform your kitchen for decades.
Replacing Lighting Fixtures
A low-cost and easy way to freshen up your kitchen and make it more appealing to potential buyers is to focus on the lighting. Whether adding recessed lighting or upgrading the current fixtures, the lighting can play a key role in adding value to your house, with even small changes getting up to 65% of a return on investment. Some lighting projects can be DIY-ed – like swapping out one fixture for another. More intensive projects like adding under-the-counter lighting can require a contractor but will add value to your home.
Before making changes to your kitchen, it’s helpful to consider how it will impact your home’s value. While it might seem daunting to fork over thousands of dollars for a remodel, even minor updates can make a big difference when it comes time to sell your home. No matter your budget, your kitchen is a great place to invest in for a high ROI.