Remodeling your kitchen has to be one of the most exciting home improvement projects out there. In fact, it is the second most common home renovation chosen by homeowners. A kitchen is the heart of your home. People talk, eat, and come together in this area, so you want to make sure that it is not only stylish but functional as well. Improving the look of your kitchen will almost always increase the value of your home, but this does not always mean you will actually see a return on your investment. There is just no guarantee.
To see a return on your kitchen upgrade, there are several factors that go into play. For example, the type of material that was used, what was done to the kitchen, and who did the work. While it may not seem like these things matter, they definitely do. For example, if your home remodel was done by a contractor who is NOT licensed or insured, you will actually see a decrease in your home’s value. It is important to pay attention to these things.
While the cost that you must put in for a kitchen remodel can vary, most homeowners pay an average of $35,000 to $55,000 for a mid-range upgrade. This type of project can increase your home’s value anywhere from $20,000 to $45,000. This means that you will recover a good chunk of the cost you put in.
When it comes down to it, you will need to consider your reason for remodeling your kitchen. Are you doing it to increase your home’s value to sell? Or are you doing it because you want a more functional and aesthetically pleasing kitchen? Knowing your reasons behind the remodel can help keep you in line with your budget and the big picture.
Below, we will review some of the kitchen remodels that have the highest return on investment along with some other helpful tips. Whether you plan to go big or small with your remodel, you will want to keep these ROI-increasing changes in mind.
What Kitchen Changes Can I Make to Get the Most ROI?
When looking at how much a kitchen remodel increases the value of your home, you want to look more at what it is you are doing to the kitchen. There are some changes that will net you a higher return rate than others. In fact, it is possible for homeowners to ignore the possibility of ROI and choose items that do nothing to the home’s value.
You do not want to find yourself stuck in a situation such as this, so knowing your goals and ideas as a homeowner can help you better increase your ROI.
Here are some of the most popular kitchen updates that will help you increase your return on investment.
The cabinetry in your kitchen is important as it is used for storage and allows you to enhance the décor within your kitchen. Replacing, redesigning, or even resurfacing your kitchen cabinetry can offer you a return on your investment. With that said, you definitely want to keep an eye out on the cost of cabinets as you can quickly overspend. Expensive features often come with a high price tag, so stay on the lookout.
- Average Cost: $2,500 to $11,000
- Average ROI: 75% to 100%
You do not have to change your kitchen structurally to get a beautiful kitchen. In fact, simply updating your cabinet’s hardware can help improve the space dramatically. If this is something you plan on doing, you will want to focus on the hinges, knobs, and pulls. You should try to match the hardware to your current style in the kitchen. Going with a sleek option such as plain gold is often times better than choosing something ornate that requires a specific taste.
While this is a simple change and not expensive at all, it does wonders for the space and is actually one of the small changes that can get you the highest ROI.
- Average Cost: Less than $700
- Average ROI: 80% to 100%
If your kitchen is currently void of a kitchen island, it may be something you want to consider adding. Most, if not all, modern kitchens have some type of island in them. Islands are a great asset to your kitchen space and they add a layer of beauty and functionality. Depending on what your needs are, you can have a sink installed on your island or any other features you desire.
- Average Cost: $500 to $5,500
- Average ROI: 60% to 80%
Quartz or Granite Countertops
When it comes to kitchen countertops, you want something that is going to be durable and not need a lot of maintenance. Both quartz and granite offer you this. Yes, these countertops can be expensive to install at first, but they are worth it. Not only will either one of these materials boost the look of your kitchen space, but you will also find that it does offer you a good return on your investment.
- Average Cost: $30 to $105 per square foot plus labor
- Average ROI: 60% to 85%
You use the appliances in your kitchen each and every day. This means that you need appliances that are durable and will function well under the pressure of continued use. Upgrading your kitchen appliances is always fun, especially when you choose newer options that help make cooking easier for you. As you do replace your kitchen appliances, opt for a clean and consistent look. You want your appliances to match and blend in well with the kitchen.
- Average Cost: $3,500 to $10,000
- Average ROI: 55% to 80%
Your kitchen’s backsplash may not seem like a big deal, but it can definitely elevate your kitchen space. The most commonly used materials for backsplash include tile and metal. ROI for kitchen backsplash is a bit lower, but it is an affordable home improvement project that can add nice aesthetics.
- Average Cost: $500 to $1,500
- Average ROI: 60% to 65%
Lighting is one of the most underrated items within the kitchen and often the most overlooked too. Your lighting choices can affect the value of your home and good lighting can boost your home’s value. You should always choose timeless lighting fixtures that create a nice balance in your kitchen while keeping it well-lit. Whether you choose recessed, overhead, under-the-cabinet, or pendant lights, you will definitely love your revamped space.
- Average Cost: $200 to $500 per fixture
- Average ROI: 60% to 70%
The best type of kitchen floor is one that is durable and water-resistant seeing as it is going to come into contact with water often. One of the most popular options is tile with wood following closely behind. If your current kitchen flooring is damaged or just not ideal for the space, you should consider replacing it. Not only will you receive some return on your investment, but you will also enjoy standing on it much better.
- Average Cost: $1,500 to $4,500
- Average ROI: Around 50%
A cluttered or cramped kitchen is not one that is going to be functional for you or enticing for buyers. Open kitchens are airy and make the space feel much bigger than it actually is. If your kitchen is closed off due to different walls, it can help to have them removed. Knocking down these walls will require a professional.
- Average Cost: $1,000 to $7,500
- Average ROI: 40% to 65%
Plumbing is a vital piece to the kitchen puzzle and without it, you would not be able to access water for your sink, ice maker, and dishwasher. Installing new pipes throughout your home is not a cheap task, but sometimes it is needed. In addition, you may want to consider new plumbing if your appliances are currently in an awkward layout and you want to adjust their location and placement.
- Average Cost: $3,500 to $10,000
- Average ROI: Around 50%
What to Think About Before a Kitchen Remodel
In general, it is usually not a good idea to do a full-blown kitchen remodel, even if you can afford to do so. This is because many minor changes can elevate the space and do not require you to spend a ton of money.
The amount of money that you get as a return on your investment will depend on what type of remodel you do. As always, it is important that you do not overspend when you renovate your home, especially in any one given area. Make sure to distribute your budget evenly to maximize your return.
Work with Professionals for a Bigger ROI
We mentioned briefly above that your ROI will depend on who performs the work in your home. Hiring a team of professionals will help ensure that you do maximize your return on your kitchen renovation. While it will cost you money in labor, it is much better to spend the money and have the job done right than to risk failing an insurance or permit inspection and having to spend more money to have the job redone by professionals.
One of the biggest mistakes that homeowners can make when renovating their kitchen is hiring the wrong person for the job. Your contractor should be knowledgeable about the work being performed and also be transparent about who will complete the work. For example, will the contractor complete the work or will they hire subcontractors to come into your home? You do not want to hire someone who says they can do it all because let’s face it, there are many different niches, and it would be impossible for a single individual to know everything.
Before you hire anyone to do work in your home, ask them these questions:
- How will we communicate throughout the project and how often?
- What are the next steps?
- Do you provide a free estimate in writing?
- Are your subcontractors licensed and insured?
- Will you clean up once the project is done?
- Will you handle the permitting process?
- What is your payment plan/schedule look like?
Similarly to hiring the right contractor, you want to hire the right designer for the job too. They will assist you in bringing your vision to life and making sure that the space looks and functions the way you want it to.
Always talk to multiple designers and contractors before settling on one as you just never know. You want to make sure you are going to be happy with the end result, as it is a large investment you are about to make. Always discuss your expectations with them and don’t be afraid to ask questions – they are used to it.
A Kitchen Remodel Can Boost Your Home’s Value
Kitchen remodeling projects are usually large in scope but can be small if only little changes are needed. No matter the size of the project, you can get a nice return on your investment if you know what to update. Working with a designer can help you know which materials and items are in high demand and what styles will last over the years.
A kitchen remodel can add function and aesthetics to your space while helping you recoup the money should you choose to move later on down the road.