How Much Does A Kitchen Remodel Increase Home Value 2023
How Much Does A Kitchen Remodel Increase Home Value?
If you're smart, you'll think long-term. The money you spend on your kitchen now could pay you back handily when you put your home on the market. So, how much does a kitchen remodel increase home value? The answer may help you decide if you really want to go through with the project.
A New Kitchen Can Increase Home Value
In general, the value is expressed as the percentage of money spent on the remodel the homeowner recovers after the sale of the home. Better Homes and Gardens says homeowners can expect a return of about 52% on their investment in a new kitchen if they sell their home. The exact amount you’ll recoup depends on a few factors, such as your house value, the value of houses in your neighborhood and the quality of the project.
How Much Can A Kitchen Increase Home Value?
Looking only at the numbers does not show you the full return value. Think about how long you intend to live in the house after you remodel the kitchen. If you plan on moving quickly after the remodel, the percentage of return is the biggest factor.
How much your home value increases is also dependent on how much you spend on the project. According to Moving.com, a
major upscale kitchen remodel returns 53.9% of the money invested. Remodeling your kitchen with mid-range fixtures has a 58.6% return on investment. If you do a minor kitchen upgrade with mid-range fixtures, you’ll see a 77.6% ROI.
How Much Should I Spend On A Kitchen Remodel To Increase Value?
Experts suggest that homeowners should spend 6 to 10% of the home's value on a kitchen renovation. Spending more than that might not give you a good return on your investment. You have to analyze the money you’re spending compared to the potential value you are adding.
For example, if your house is worth $500,000 and you spend $100,469-786-7581%) of the home's value on a major kitchen renovation, you'll get see about a 53.9% ROI — or a $53,900 boost to your home’s value.
In contrast, if you spend $50,469-786-7581%) of your home's value on a smaller-scale kitchen upgrade, you can expect an ROI of 77.6% — or a $38,800 home value increase.
Do I Spend More On A Kitchen Remodel If I Am Selling Quickly?
Take into account the time you plan to spend in your home after the kitchen is remodeled. If you are moving right away, the 6-to-10% rule makes sense. However, if you plan to stay in your home for years to come, you might want to spend more because the investment also becomes about your personal enjoyment of the space.
Interested in talking more about increasing your home's value by remodeling your kitchen? Contact us to request a discovery call!
