A kitchen remodeling project can certainly increase the value of your home - especially in the long run. But what, precisely, does
value mean? Different homeowners define
value differently, so it's good to clarify your
value goals at the beginning of your project.
If you're looking for an immediate return on investment (ROI), for example, you might want to take a look at the numbers. According to Remodeling Magazine's 2014 "Cost vs. Value" report, homeowners living in mid-range homes in the Middle Atlantic states should expect a 64% cost recoup for "major" kitchen remodeling projects ($56,254), and an 68% cost recoup for "minor" kitchen remodeling projects ($19,350).
These numbers are good - but they do not reveal a 100% ROI, immediate or otherwise.
However, these numbers do not tell the whole story of the true value of a kitchen remodeling project. If you're concerned about the value of your potential kitchen renovation, you might want to dig a bit deeper than a simple cost vs. value assessment.
Below we discuss how to accurately assess the true value of your next kitchen remodeling project.
What do the Numbers Actually Mean?
Remodeling Magazine's numbers speak to a general view of home resale values in different parts of the country. So it's important to note: you might see a tremendously different equation for your own kitchen remodeling project - especially if your project is a key factor in selling your otherwise hard-to-sell home.
Remodeling Magazine admits as much:
Although the costs used in the Remodeling Cost vs. Value Report are based on itemized estimates, the designs and material specifications are
typical and not based on actual projects. When comparing the data in this report to actual remodeling costs in a particular geographic area, small differences in the size or scope of a project, or in the quality of finishes and accessories the homeowner chooses, can dramatically affect the price.
That last phrase is crucial: dramatically affect the price.
For some homeowners, the cost vs. value equation might yield a 120% percent ROI. For others, the ROI might be less than the stated averages above.
Are You Staying or Selling?
At Enterprise Home Remodeling, we try to give each and every client a precise view of how a remodeling project will affect the home's resale value.
In general, though, if you're looking to maximize ROI quickly, your home might not be best the candidate for a full-scale kitchen upgrade. Singular improvements like new cabinets or flooring, or even a simple paint job, can make a tremendous difference to potential buyers.
major kitchen remodeling project is best-suited to homeowners who plan to stay in the house for five or more years. After all, why invest all that money if you can't enjoy your kitchen makeover?
What the Numbers Don't Tell You
value of a kitchen remodeling project can also be somewhat intangible - at least in terms of quantifiable numbers and charts and graphs! For example, a new kitchen design can positively transform your life by easing stress and elevating relaxation and happiness. No
report can adequately account for the joy of hosting your first Thanksgiving in your new kitchen. No graph can accurately assess the value of your new ability to make home-cooked dinners every night.
For this reason, at Enterprise Home Remodeling we try to discuss ROI and lifestyle improvements. Before you begin your project, then, you would do well to consider a basic question:
Is your goal a lofty ROI or a lofty lifestyle improvement?
Obviously, if you expect to live in your home for years to come, you main concern should not be ROI but lifestyle improvement. For this purpose, think about your kitchen renovation in terms of what, exactly, you would like to see.
On the other hand, if you hope to sell your home soon, and you believe a project just might fetch a higher price, then, of course, you should think in terms of ROI. For this purpose, think about your kitchen renovation in terms of what, exactly, you think your potential buyers would like to see.
In either case, looking beyond the numbers will give you a better assessment of the true value of your kitchen remodeling project.
Master Kitchen & Bath Design has set the standard for kitchen remodeling in the Bucks County area for over thirty years. A rare find in the kitchen remodeling industry, MKBD excels in both in-house design and construction. We never use subcontractors, all of our team members, from our lead designer to lead carpenter, take ownership of each project.
Master Kitchen and Bath Design designs beautiful bathrooms to complement both older and newly constructed homes. For over thirty years, MKBD has distinguished itself as the leading bathroom remodeling company in the Philadelphia area. When you work with MKBD, you partner with the most innovative and skilled talent in the bathroom remodeling industry.
In many homes, the basement is a neglected space, a hideaway for moldering storage boxes, discarded furniture, and outdated supplies. A remodeling project can transform your basement into a functional living space. From recreational rooms to guest suites, Master Kitchen & Bath Design excels in the design and construction of finished basements.