To Remodel or Not? How a Kitchen Overhaul Affects Your Home’s Value

When it comes to renovating a home, the kitchen is a popular place to start. For many people, the kitchen is the heart of the home, so making it a comfortable, functional place just makes sense.

The downside to kitchen remodeling is the cost. Making upgrades can get very expensive, so as a homeowner, you have to wonder if the expense is worth it. Will it increase the value of your home so you can recoup some of the costs of doing the renovation? In the following paragraphs, we discover how remodeling the kitchen affects your home’s value. 

The Cost of a Kitchen Remodel

Every successful renovation should begin with a budget. You should have a solid idea of how much you can spend on the project before you begin. 

The average household spends somewhere between $20,000 and $50,000 on renovating a kitchen. This often includes replacing appliances, countertops, and flooring, as well as the cabinet fronts and hardware. 

Will Remodeling My Kitchen Make My Home Worth More?

The short answer is yes. Studies show that homebuyers rank the kitchen as one of the most important rooms in a home. They are often willing to pay more for features like new appliances and granite countertops. 

So, while it’s almost guaranteed that your home’s value will go up after a kitchen upgrade, the longer answer to this question is that it may not be enough to recoup the cost of doing the project. In fact, it probably won’t even come close. 

Your Return on Investment with a Kitchen Renovation

The return on investment (ROI) you can expect with a kitchen renovation depends on several different factors. These include how big of a renovation you’re doing, the cost of making said upgrades, and what part of the country you live in. 

For example, if you’re planning a major kitchen overhaul, you can expect to get back about half of what you put into it. A smaller-scale kitchen renovation may garner up to 80 percent of the cost in increased home value. If you live in the Pacific area of the country, you can expect an ROI of up to 93 percent, while people living in Iowa or North Dakota may only see an ROI of about 68 percent when remodeling their kitchens. 

Is a Kitchen Remodel Worth the Expense?

There is no one-size-fits-all answer to this question. However, if you plan to sell your home right after making kitchen upgrades, it makes little sense to spend $50,000 to do so only to recoup $30,000. 

On the other hand, if you plan to live in the home and enjoy the upgrades yourself, the benefits are numerous. Many homeowners claim a better home/family life after a kitchen renovation is complete. They spend more time together, cook more meals at home, and live an all-around healthier lifestyle in their renovated kitchens. Even if you don’t get back everything you put into a kitchen remodel financially, it’s hard to overlook benefits like that.