A kitchen renovation is one of the most popular home improvement projects, and for good reason. A well-designed and updated kitchen can add significant value to your home, as well as make it a more enjoyable space to live in. But just how much value does a kitchen remodel add if you want to sell your home? Let’s take a closer look.
According to Remodeling Magazine’s 2022 Cost vs. Value Report, the average cost of a major kitchen remodel is around $80,000 with midrange materials and $158,000 with upscale materials. The average return on investment is 54.3%. This means that on average, a midrange $80,000 kitchen remodel will add about $43,500, and an upscale $158,000 kitchen remodel will add about $85,800 to the value of your home.
How Much Value Does a Kitchen Remodel Add to My Home?
Of course, the exact amount of value a kitchen renovation adds to your home will depend on a variety of factors. This includes the scope of the project, the quality of materials used, and your local real estate market (as opposed to the national average). Here are some other factors that can impact the costs, and therefore the value of your kitchen renovation project:
- Size of the kitchen
- Quality of materials
- Layout and design
- Local real estate market
- Quality and upkeep of balance of home
- Energy efficiency
Size of the kitchen
A larger kitchen will generally add more value to your home than a smaller one. But when remodeling your kitchen, think about how it will fit in with the rest of the home. You don’t want to take away valuable real estate (so to speak) from a different area of the home just for extra square footage.
Quality of materials
High-end materials, such as custom cabinets and top-of-the-line appliances, will generally increase the average ROI of a kitchen upgrade. Also, think of what materials other homebuyers would be interested in. You may really want butcher block countertops, but if the majority of buyers are looking for marble or something else, you could affect the sale price point.
Layout and design
A well-designed kitchen that maximizes space and functionality will add more value than a poorly designed one. A major–or even minor–kitchen remodel isn’t the time to save money on design. Are you able to open the refrigerator and oven at the same time? If not, potential buyers will see those design flaws and may not want to deal with their own kitchen remodel costs.
Local real estate market
The value of your kitchen renovation will also depend on the local real estate market. In a hot market where homes are selling quickly, a kitchen remodel increases home value even without those high-end finishes. In a slower market with lots of inventory, you may need to go big to stand out. A real estate agent is a great resource for this kind of information.
Quality and upkeep of balance of home
If your kitchen project “completes” your home updates, it will add more value than one that is the only area that has been updated. The kitchen is the heart of the home, but if it looks out of place with the rest of the home, potential buyers may notice other glaring issues that much more.
Adding energy-efficient features, such as LED lighting and high-efficiency appliances, can add value to your home by reducing energy costs and increasing sustainability. The ability to cite real-world savings every month is appealing to many potential buyers.
In conclusion, a kitchen renovation can add significant value to your home, with an average return on investment of around 54.3%. However, the exact value added will depend on a variety of factors, including the scope of the project, the quality of materials used, and the local real estate market.
By carefully planning your kitchen renovation and choosing high-quality materials and design features, you can maximize the value added to your home. Metke Remodeling is a design-build contractor that specializes in luxury remodels–if you want the most bang for your buck, reach out to see how we can help.