Kitchen Remodel Cost vs. Value: To Renovate or Not
Are you considering a kitchen remodel?
There tends to be two basic schools of thought when it comes to whether a homeowner should invest the time and money needed to renovate a dated kitchen before placing a home on the market or forgo the project and offer the home for a lower price.
Most people’s knee-jerk reaction would be to list the home as-is and leave the renovating up to the future resident. The thought process behind that plan is, ‘Why put extra effort and money into a home when you won’t even be around to enjoy it?’
The question on any homeowner’s mind when considering a renovation prior to selling is, “Will I get a significant return on my investment?”
Although the decision should involve more than this basic logic, there certainly needs to be a degree of confidence that the cost will be worthwhile when it comes to the home’s final selling price.
The Cost-Value Ratio of a Kitchen Remodel
The biggest factor to keep in mind when making decisions about home improvement before listing your home is the cost-value ratio that pertains to the particular type of project you are considering. The cost-value ratio is essentially the ratio of how much the project will cost versus how much of that total is likely to be recouped at selling time.
The problem is that this figure can be a bit ambiguous. It doesn’t take into consideration the notion that the renovation may have influenced the speed of the sale or if the renovation is what made the home sellable in the first place.
Both of these possibilities certainly have value in and of themselves. As a general rule, the less costly projects tend to bring the highest return on the investment with the sale of the home. Surprisingly, insulation installation actually topped the list with a cost-value ratio of over one-hundred percent.
The next higher ranking projects that tend to give the most bang-for-your-buck include exterior improvements such as stone veneer installation and garage door replacement.
Major Kitchen Remodel ROI
Although the projects that seem to influence curb appeal the most and that cost less than 5K for a professional to complete topped the list at fetching the highest returns, it may stand to reason that many buyers are more concerned about the inside of the house.
When it comes to jobs that exceed 25K, major kitchen remodels still made it into the top six with a return percentage of over 64% nationally according to the Remodeling Magazine’s 2016 Cost vs. Value report.
In a competitive market, a freshly remodeled kitchen might be just the ticket to expedite a sale.
Are you considering remodeling your kitchen prior to listing your home? Even if you are not planning to sell now, it would be wise to check where your project ranks on the current cost vs. value report. Another idea would be to check with a realtor who is knowledgeable about the competitiveness of the market in your area.
Whether you decide to bring your kitchen up to date or would prefer to stick with exterior jobs that are sure to enhance your home’s curb appeal, contact us at Renovations Roofing and Remodeling, Inc. for quality work that is sure to impress.
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