Want to increase the return on investment in a costly kitchen remodel? It’s worth taking the time to make sure you’re investing in the right room – and the best upgrades – before you get started. According to Remodeling, kitchen projects that cost below $20,000 get an 83 percent return on investment. In fact, the kitchen scored better than remodeling the basement, bathroom, and home office, and adding on a garage, family room or bathroom. If you’re moving ahead with a kitchen remodel, here’s what you should know.
Value is king
The most important rule in a kitchen remodel is not to invest more money in the project than the home is worth. For example, putting up $35,000 for a remodeling project when your home is worth $175,000 won’t get you the ROI you’re looking for. A diminishing return on investment in the remodel will only leave you with a home that’s worth more than you can sell it. Be careful of the scope of the project. Consider if a minor facelift boosts your home’s value and maintains your competitive edge in the market, before proceeding with a complete kitchen overhaul.
Know what people want
Yes, you should invest in kitchen features that you like, but if you feature your favorite color – orange – in the counters, it’ll prove hard to sell and recoup its value. Savvy homeowners invest in neutral tones and put their money into features that home buyers want to maximize value. It’s best to balance popular features with your own preferences, perhaps bringing in the color orange through accessories that you can put away when you’re showing the home, or swap them out later without spending a fortune.
Investing your money
Here are some of the popular feature people tend to look for in a new home:
- New cabinets. If yours are in good condition, give tired cabinets a fresh look by refacing them. Refacing contractors will leave the cabinets in place, but cover the front door panels, drawers and spacers with a fresh, permanent front.
- Hardware. Swap out the old hardware for new, with brushed nickel or bronze knobs and pulls. Or go for a sleek, modern look with silver. New hardware instantly brightens up your existing cabinets and transforms the look of the room.
- Paint. Get rid of bright wall color and bring in a neutral, soothing tone. Beige, light browns, shades of white – these are all colors that will play a secondary role to more prominent features – like striking new countertops or a backsplash.
- Counters. In the average kitchen, the counters take up a lot of space. As a result, installing new counters can quickly shift the feel of the room. Choose a natural stone for durability and longevity and to make it the centerpiece of the room.
- Backsplash. Does your kitchen have a backsplash at all? This is one feature homebuyers are looking for, so consider freshening up the kitchen with a bright, new backsplash. This feature keeps the kitchen clean and it’s a lasting material that will preserve the walls.
- Lighting. Have you given the lighting in your kitchen much thought? The right lighting for task areas as well as mood lighting can transform the kitchen. Use a layered approach, installing lights in work spaces, gathering areas and to add shadow and dimension to the space, too.
Your kitchen remodel should provide a refreshing and investing space to gather with family and friends, but it should also pay off financially. Work with a kitchen designer before you start the project, and discuss the best ways to increase the return on investment in your kitchen remodel.
