When it comes to remodeling, not all projects are created equal. Some will increase the value of your home more than others. But how can you know which ones will have the biggest impact? To be clear, any kitchen remodel that involves replacing cabinetry, adding new appliances and other cosmetic changes will be great for you personally. These updates are sure to improve your everyday life as a homeowner. But if you’re hoping to sell your home at some point in the future, a kitchen remodel probably won’t help much when it comes time to find a new place to live. That said, there are ways for you to know exactly what kind of impact a kitchen makeover will have on your potential resale value. In this blog post, we’ll go over some considerations that might help you decide which projects -- big or small -- will give you the biggest return on investment down the road.
When it comes to deciding what changes to make, the first thing you might want to do is take a look at similar properties that have recently sold in your area. - If you can find a couple of properties that are similar to yours in size, layout and other factors, you can use data from their recent sales to get an idea of what buyers are currently paying for similar homes in your area. You can also see what comparable properties are listed for sale right now and get an idea of how your home might compare once it’s listed. - You can use this information to get a general idea of how a kitchen remodel might affect your home’s resale value. If a similar home with a similar kitchen sold for a certain price, you can expect something similar for your place. Keep in mind that the current market may have changed a bit since that sale occurred, so your numbers might be a bit different.
While the aesthetics of your kitchen are important, a beautiful kitchen that doesn’t function well will have trouble increasing your home value. If a potential buyer comes through your property and finds that your kitchen is beautiful but has issues with functionality (e.g. poor layout, bad flow), they may decide to keep looking instead of making an offer. The price you can get for your home may be lower as a result. A functional kitchen is one that is easy to use and has everything (and everyone) in the right place. It’s one that makes sense and has been designed with your lifestyle in mind. If your main concern is increasing your home’s resale value, you can enhance the functionality of your kitchen by adding things like additional storage areas, new appliances, new countertops and other functional elements to the space. These will help make your kitchen more desirable for potential buyers, even though they wouldn’t necessarily add value for your personal everyday use.
If you go all out on a major luxury kitchen remodel, you could make your kitchen worth significantly more than it was before. This is because the market for high-end, luxury property resales is always strong. That said, the more majorly you go with this type of remodel, the less likely it is to happen in the near future. People who buy high-end properties tend to keep them. So if your intent is to sell your home in the next year or two, this might not be the best route. If you want to add a luxury feel to your kitchen, you have plenty of options. You can add a lot of high-end materials (granite, quartz, marble, high-end appliances and fixtures, etc.) You can also make simple changes that make your kitchen feel luxurious, like adding a large island or eating space to make the room feel more spacious and open.
While a luxury kitchen can help increase your home value, a kitchen that has been shown to have real luxury appeal will do even more. - If you have access to data on what specific types of kitchens have proven to be the most popular and have the biggest impact on home value, you could try to emulate that look for your own place. - The trouble with doing this is that you’re likely to need to hire a designer or contractor who specializes in those specific types of kitchens. They may also be able to recommend some other changes to your kitchen that might help it appeal to high-end buyers even more.
Beyond the actual type of kitchen remodel that you do for your place, there are other things you can do to help it increase its resale value. A few other factors that can help your kitchen sell for more include: - Location - Your home’s location has a major impact on its resale value. If your place is in a neighborhood that is growing and gaining value quickly, it’ll sell for more. If it’s in a place that is not desirable, it will sell for less. Ways you can improve your home’s location include: - Style - The style of your home matters when it comes to resale value, too. If the style of your home is dated or not in line with what buyers are looking for, you may have trouble selling your place at a high price. To help improve the style of your home and thereby increase its resale value, you can: - Updates to General Home Condition - Beyond the kitchen itself, you can do things to improve the overall condition of your property and thus increase its resale value. These can include things like:
When deciding what to do for your next kitchen remodel, it’s important to consider how those changes might affect your home’s resale value. A kitchen remodel can be a great way to increase your home’s value, but only if you do it the right way. If you want to know what kitchen upgrades increase home value the most, you can start by looking at properties that have recently sold in your area. From there, you can decide what kitchen upgrades will best help you achieve your design and functional goals, while also maximizing your home’s resale value.