Are you thinking about embarking on a kitchen renovation? Updating your kitchen is exciting, but it is no small task. Like any major financial decisions, you must consider your reasons for investing and what you hope to achieve as a return. How do you determine the value of a kitchen upgrade? Our 5 step guide will help you get started.
1. Why am I remodeling?
The first thing to understand when planning a new kitchen design is your motivation. Is your kitchen in disrepair, no longer suited to your family’s needs, or simply due for a style update? Are you remodeling for personal use, or are you selling and need to make your home more competitive in the local housing market? Your motivation drives the size and type of renovation required and greatly impacts how you define the value you receive.
When renovating for personal use, the value gained is largely emotional rather than monetary. If you are remodeling for resale, the goal is to achieve a direct monetary return from your investment through the appeal to buyers and selling price.
2. How long do I plan to stay in my home?
Even if you are remodeling for personal use, you may be planning to stay for 5, 15, or 50 years. Based on this, you could decide to invest more money to change the layout or put on a kitchen addition. This makes sense if you are remodeling your home for life. Or, you may want to simply update your style and incorporate useful storage options if you expect to move in the near future.
Take into account the requirements of your family during the time you expect to use the new kitchen. Is your family expanding, do you have a busy household with school age kids, or are you planning your renovation around retirement and aging in place?
3. What is happening in my local market?
If you are remodeling for resale value, it becomes particularly important that you examine the local market to see the value of homes in your area. Talk to a real estate agent to get advice on what sells and the must have features. Do not skimp on essential items that add to the appeal of your kitchen design, but also make sure to not price yourself out of your local market.
4. What are the key features I (or potential buyers) want most?
Consider the must have features you cannot live without in your new kitchen. If you are staying in your home, focus on items that bring you the greatest pleasure and positively impact family life.
If you plan to sell, think about the style and design elements that help you achieve the highest price possible. Once you get potential buyers in the front door, the quality of the kitchen can make or break the sale of your home. Many potential homeowners appreciate seeing a move-in ready, updated kitchen. Go for a style and color scheme that appeal to others and not just you. For example, a transitional style coupled with good quality stainless steel appliances offers a stunning design that appeals to a wide variety of people.
5. How much can I afford and how much should I spend?
If you have a large budget and are remodeling for personal use, pack in as many desired features as you can reasonably afford, like a Galley Workstation. Our kitchen design gallery offers more inspiration for must have features.
If remodeling for resale, leave some space in your budget for a few eye catching features like a granite or engineered quartz countertop or specialized storage accessories. These features draw the attention of potential buyers. At the same time, consider what return you expect from your investment and spend wisely. According to Remodeling Magazine’s report on Cost v. Value, a kitchen renovation in the St. Clair Shores region ranges from $60,000 to over $120,000. You will recoup around 60-64% of the costs in resale value, though some sources put this even higher. Weigh up budget choices, and consider which items are must haves and which are lower priority.
Examine why you want to update your kitchen, then look at how to get the maximum value out of your renovation. Consult your kitchen design expert to better understand the value of a remodel.